I 
114TH CONGRESS 
1ST SESSION H. R. 1492 
To amend the Internal Revenue Code of 1986 to increase and improve 
the credit for dependent care expenses and to provide a credit for 
education of employees of child care centers. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2015 
Ms. EDWARDS (for herself, Ms. DELAURO, Mr. CONYERS, Mr. BLUMENAUER, 
Mrs. BUSTOS, Mrs. CAPPS, Ms. CASTOR of Florida, Mr. DELANEY, Ms. 
DELBENE, 
Ms. 
FUDGE, 
Mr. 
HASTINGS, 
Ms. 
MCCOLLUM, 
Mr. 
MCDERMOTT, Mr. NADLER, Ms. NORTON, Mr. PERLMUTTER, Ms. PIN-
GREE, Mr. RUSH, Ms. SCHAKOWSKY, Ms. SLAUGHTER, Ms. SPEIER, and 
Ms. WASSERMAN SCHULTZ) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to increase 
and improve the credit for dependent care expenses and 
to provide a credit for education of employees of child 
care centers. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Child Care Access and 
Refundability Expansion Act’’ or as the ‘‘Child CARE 
Act’’. 
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SEC. 2. CREDIT FOR DEPENDENT CARE EXPENSES. 
(a) CREDIT MADE REFUNDABLE.— 
(1) IN GENERAL.—The Internal Revenue Code 
of 1986 is amended by redesignating section 21 as 
section 36C and by moving such section after section 
36B. 
(2) CREDIT NOT ALLOWED FOR SERVICES PRO-
VIDED
OUTSIDE
THE
UNITED
STATES.—Section 
36C(b)(2)(A) of such Code, as redesignated by this 
section, is amended by adding at the end the fol-
lowing: ‘‘Such term shall not include any amount 
paid for services provided outside the United 
States.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Section 23(f)(1) of such Code is 
amended by striking ‘‘section 21(e)’’ and insert-
ing ‘‘section 36C(e)’’. 
(B) Section 35(g)(6) of such Code is 
amended by striking ‘‘section 21(e)’’ and insert-
ing ‘‘section 36C(e)’’. 
(C) Section 36C(a)(1) of such Code, as re-
designated by this section, is amended by strik-
ing ‘‘this chapter’’ and inserting ‘‘this subtitle’’. 
(D) Section 129(a)(2)(C) of such Code is 
amended by striking ‘‘section 21(e)’’ and insert-
ing ‘‘section 36C(e)’’. 
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(E) Section 129(b)(2) of such Code is 
amended by striking ‘‘section 21(d)(2)’’ and in-
serting ‘‘section 36C(d)(2)’’. 
(F) Section 129(e)(1) of such Code is 
amended by striking ‘‘section 21(b)(2)’’ and in-
serting ‘‘section 36C(b)(2)’’. 
(G) Section 213(e) of such Code is amend-
ed by striking ‘‘section 21’’ and inserting ‘‘sec-
tion 36C’’. 
(H) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 
(I) Section 6213(g)(2)(H) of such Code is 
amended by striking ‘‘section 21’’ and inserting 
‘‘section 36C’’. 
(J) Section 6213(g)(2)(L) of such Code is 
amended by striking ‘‘section 21, 24, 32, or 
6428’’ and inserting ‘‘section 24, 32, 36C, or 
6428’’. 
(K) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘36C,’’ after ‘‘36B,’’. 
(L) The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the In-
ternal Revenue Code of 1986 is amended by 
striking the item relating to section 21. 
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(M) The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of such 
Code is amended by inserting after the item re-
lating to section 36B the following new item: 
‘‘Sec. 36C. Expenses for household and dependent care services necessary for 
gainful employment.’’. 
(b) INCREASE
IN DOLLAR LIMITATION.—Section 
36C(c) of such Code, as redesignated by this section, is 
amended— 
(1) by striking ‘‘$3,000’’ in paragraph (1) and 
inserting ‘‘$8,000’’, and 
(2) by striking ‘‘$6,000’’ in paragraph (2) and 
inserting ‘‘twice the dollar amount in effect under 
paragraph (1)’’. 
(c) CREDIT ALLOWED FOR 50 PERCENT OF QUALI-
FIED EXPENSES.—Section 36C(a)(2) of such Code, as re-
designated by this section, is amended by striking ‘‘35 per-
cent’’ and all that follows and inserting ‘‘50 percent.’’. 
(d) INCOME LIMITATION.—Section 36C(a) of such 
Code, as redesignated by this section, is amended by add-
ing at the end the following new paragraph: 
‘‘(3) INCOME LIMITATION.—No credit shall be 
allowed under paragraph (1) with respect to any tax-
payer for any taxable year if the taxpayer’s adjusted 
gross income for such taxable year exceeds 
$200,000.’’. 
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(e) INFLATION ADJUSTMENT OF DOLLAR AND IN-
COME LIMITATIONS.—Section 36C(e) of such Code, as re-
designated by this section, is amended by adding at the 
end the following new paragraph: 
‘‘(11) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2015, the $8,000 amount in subsection (c)(1) 
and the $200,000 amount in subsection (a)(3) 
shall each be increased by an amount equal 
to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2014’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(B) ROUNDING.—Any increase deter-
mined under subparagraph (A) shall be rounded 
to the nearest multiple of $100.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
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SEC. 3. CREDIT FOR EDUCATION OF EMPLOYEES OF CHILD 
CARE CENTERS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45S. CHILD CARE CENTER EDUCATION CREDIT. 
‘‘(a) IN GENERAL.—For the purposes of section 38, 
the child care center education credit determined under 
this section for the taxable year is an amount equal to 
50 percent of so much of the child care educational ex-
penses paid or incurred by the taxpayer with respect to 
the operation of a qualified child care center during the 
taxable year. 
‘‘(b) LIMITATION.—The child care educational ex-
penses taken into account under subsection (a) with re-
spect to any eligible employee of the taxpayer for any tax-
able year shall not exceed $1,000. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) CHILD CARE EDUCATIONAL EXPENSES.— 
‘‘(A) IN GENERAL.—The term ‘child care 
educational expenses’ means, with respect to 
any eligible employee, expenses paid or incurred 
by the taxpayer to an eligible educational insti-
tution (as defined in section 25A(f)(2)) for 
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classes related to early childhood education or 
development or child care certification. 
‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘el-
igible employee’ means any employee of the tax-
payer whose primary job function is providing 
care to children in a qualified child care center. 
‘‘(2) QUALIFIED
CHILD
CARE
CENTER.—The 
term ‘qualified child care center’ means any depend-
ent care center (as defined in section 36C(b)(2)(D)) 
located in the United States which meets the re-
quirements of section 36C(b)(2)(C)(i). 
‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction 
shall be allowed under this chapter for the portion of the 
expenses otherwise allowable as a deduction that are taken 
into account in determining the credit under this section 
for the taxable year.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code is 
amended by striking ‘‘plus’’ at the end of paragraph (35), 
by striking the period at the end of paragraph (36) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(37) the child care center education credit de-
termined under section 45S(a).’’. 
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(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45S. Child care center education credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid or incurred after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
Æ 
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