IB 
Union Calendar No. 307 
116TH CONGRESS 
2D SESSION 
H. R. 3300 
[Report No. 116–384] 
To amend the Internal Revenue Code of 1986 to provide tax relief for 
workers and families, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 18, 2019 
Mr. NEAL introduced the following bill; which was referred to the Committee 
on Ways and Means 
FEBRUARY 4, 2020 
Additional sponsors: Mr. SAN NICOLAS and Mr. NORCROSS 
FEBRUARY 4, 2020 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 18, 2019] 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Economic Mobility Act of 2019’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; etc. 
TITLE I—EARNED INCOME TAX CREDIT 
Sec. 101. Strengthening the earned income tax credit for individuals with no 
qualifying children. 
Sec. 102. Taxpayer eligible for childless earned income credit in case of quali-
fying children who fail to meet certain identification require-
ments. 
Sec. 103. Credit allowed in case of certain separated spouses. 
Sec. 104. Elimination of disqualified investment income test. 
Sec. 105. Application of earned income tax credit in possessions of the United 
States. 
TITLE II—CHILD TAX CREDIT 
Sec. 201. Child tax credit fully refundable for 2019 and 2020. 
Sec. 202. Payments to possessions. 
TITLE III—DEPENDENT CARE ASSISTANCE 
Sec. 301. Refundability and enhancement of child and dependent care tax credit. 
Sec. 302. Increase in exclusion for employer-provided dependent care assistance. 
TITLE IV—CERTAIN FRINGE BENEFIT EXPENSES 
Sec. 401. Repeal of inclusion of certain fringe benefit expenses in unrelated busi-
ness taxable income. 
(c) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Inter-
nal Revenue Code of 1986. 
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TITLE I—EARNED INCOME TAX 
CREDIT 
SEC. 101. STRENGTHENING THE EARNED INCOME TAX 
CREDIT FOR INDIVIDUALS WITH NO QUALI-
FYING CHILDREN. 
(a) SPECIAL RULES FOR 2019 AND 2020.—Section 32 
is amended by adding at the end the following new sub-
section: 
‘‘(n) SPECIAL RULES
FOR INDIVIDUALS WITHOUT 
QUALIFYING CHILDREN.—In the case of any taxable year 
beginning in 2019 or 2020— 
‘‘(1) CREDIT ALLOWED FOR CERTAIN INDIVID-
UALS OVER AGE 18.— 
‘‘(A) IN GENERAL.—Except in the case of a 
full-time student (or, in the case of a married in-
dividual, except if both the individual and the 
individual’s spouse are full-time students), sub-
section (c)(1)(A)(ii)(II) shall be applied by sub-
stituting ‘age 19’ for ‘age 25’. 
‘‘(B) FULL-TIME STUDENT.—For purposes 
of this paragraph, the term ‘full-time student’ 
means, with respect to a taxable year, an indi-
vidual who is an eligible student (as defined in 
section 25A(b)(3)) during at least 5 calendar 
months during the taxable year. 
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‘‘(2) INCREASE IN MAXIMUM AGE FOR CREDIT.— 
Subsection (c)(1)(A)(ii)(II) shall be applied by sub-
stituting ‘age 66’ for ‘age 65’. 
‘‘(3) INCREASE IN CREDIT AND PHASEOUT PER-
CENTAGES.—The table contained in subsection (b)(1) 
shall be applied by substituting ‘15.3’ for ‘7.65’ each 
place it appears therein. 
‘‘(4) INCREASE IN EARNED INCOME AND PHASE-
OUT AMOUNTS.— 
‘‘(A) IN GENERAL.—The table contained in 
subsection (b)(2)(A) shall be applied— 
‘‘(i) 
by 
substituting 
‘$9,570’ 
for 
‘$4,220’, and 
‘‘(ii) by substituting ‘$11,310’ for 
‘$5,280’. 
‘‘(B) COORDINATION WITH INFLATION AD-
JUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of any 
taxable year beginning after 2019, the 
$9,570 and $11,310 amounts in subpara-
graph (A) shall each be increased by an 
amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
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‘‘(II) the cost-of-living adjustment 
determined under section 1(f)(3) for 
the calendar year in which the taxable 
year begins, determined by substituting 
‘2018’ for ‘2016’ in subparagraph 
(A)(ii) thereof. 
‘‘(ii) 
ROUNDING.—If 
any 
increase 
under clause (i) is not a multiple of $10, 
such increase shall be rounded to the nearest 
multiple of $10. 
‘‘(iii) COORDINATION WITH OTHER IN-
FLATION ADJUSTMENT.—Subsection (j) shall 
not apply to any dollar amount specified in 
this paragraph.’’. 
(b) INFORMATION RETURN MATCHING.—As soon as 
practicable, the Secretary of the Treasury (or the Sec-
retary’s delegate) shall develop and implement procedures 
for checking an individual’s claim for a credit under section 
32 of the Internal Revenue Code of 1986, by reason of sub-
section (n)(1) thereof, against any information return made 
with respect to such individual under section 6050S (relat-
ing to returns relating to higher education tuition and re-
lated expenses). 
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(c) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2018. 
SEC. 102. TAXPAYER ELIGIBLE FOR CHILDLESS EARNED IN-
COME CREDIT IN CASE OF QUALIFYING CHIL-
DREN WHO FAIL TO MEET CERTAIN IDENTI-
FICATION REQUIREMENTS. 
(a) IN GENERAL.—Section 32(c)(1) is amended by 
striking subparagraph (F). 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after the date 
of the enactment of this Act. 
SEC. 103. CREDIT ALLOWED IN CASE OF CERTAIN SEPA-
RATED SPOUSES. 
(a) IN GENERAL.—Section 32(d) is amended— 
(1) by striking ‘‘MARRIED INDIVIDUALS.—In the 
case of’’ and inserting the following: ‘‘MARRIED INDI-
VIDUALS.— 
‘‘(1) IN GENERAL.—In the case of’’, and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) DETERMINATION OF MARITAL STATUS.—For 
purposes of this section— 
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‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), marital status shall be deter-
mined under section 7703(a). 
‘‘(B) 
SPECIAL
RULE
FOR
SEPARATED 
SPOUSE.—An individual shall not be treated as 
married if such individual— 
‘‘(i) is married (as determined under 
section 7703(a)) and does not file a joint re-
turn for the taxable year, 
‘‘(ii) lives with a qualifying child of 
the individual for more than one-half of 
such taxable year, and 
‘‘(iii)(I) during the last 6 months of 
such taxable year, does not have the same 
principal place of abode as the individual’s 
spouse, or 
‘‘(II) has a decree, instrument, or 
agreement (other than a decree of divorce) 
described in section 121(d)(3)(C) with re-
spect to the individual’s spouse and is not 
a member of the same household with the 
individual’s spouse by the end of the taxable 
year.’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 32(c)(1)(A) of such Code is amended 
by striking the last sentence. 
(2) Section 32(c)(1)(E)(ii) of such Code is 
amended by striking ‘‘(within the meaning of section 
7703)’’. 
(3) Section 32(d)(1) of such Code, as amended by 
subsection (a), is amended by striking ‘‘(within the 
meaning of section 7703)’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after the date 
of the enactment of this Act. 
SEC. 104. ELIMINATION OF DISQUALIFIED INVESTMENT IN-
COME TEST. 
(a) IN GENERAL.—Section 32 of the Internal Revenue 
Code of 1986 is amended by striking subsection (i). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 32(j)(1) of such Code is amended by 
striking ‘‘subsections (b)(2) and (i)(1)’’ and inserting 
‘‘subsection (b)(2)’’. 
(2) Section 32(j)(1)(B)(i) of such Code is amend-
ed by striking ‘‘subsections (b)(2)(A) and (i)(1)’’ and 
inserting ‘‘subsection (b)(2)(A)’’. 
(3) Section 32(j)(2) of such Code is amended— 
(A) by striking subparagraph (B), and 
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(B) by striking ‘‘ROUNDING.—’’ and all 
that follows through ‘‘If any dollar amount’’ and 
inserting the following: ‘‘ROUNDING.—If any dol-
lar amount’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after the date 
of the enactment of this Act. 
SEC. 105. APPLICATION OF EARNED INCOME TAX CREDIT IN 
POSSESSIONS OF THE UNITED STATES. 
(a) IN GENERAL.—Chapter 77 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following 
new section: 
‘‘SEC. 7529. APPLICATION OF EARNED INCOME TAX CREDIT 
TO POSSESSIONS OF THE UNITED STATES. 
‘‘(a) PUERTO RICO.— 
‘‘(1) IN
GENERAL.—With respect to calendar 
year 2020 and each calendar year thereafter, the Sec-
retary shall, except as otherwise provided in this sub-
section, make payments to Puerto Rico equal to— 
‘‘(A) the specified matching amount for 
such calendar year, plus 
‘‘(B) in the case of calendar years 2020 
through 2024, the lesser of— 
‘‘(i) the expenditures made by Puerto 
Rico during such calendar year for edu-
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cation efforts with respect to individual tax-
payers and tax return preparers relating to 
the earned income tax credit, or 
‘‘(ii) $1,000,000. 
‘‘(2) REQUIREMENT TO REFORM EARNED INCOME 
TAX CREDIT.—The Secretary shall not make any pay-
ments under paragraph (1) with respect to any cal-
endar year unless Puerto Rico has in effect an earned 
income tax credit for taxable years beginning in or 
with such calendar year which (relative to the earned 
income tax credit which was in effect for taxable 
years beginning in or with calendar year 2019) in-
creases the percentage of earned income which is al-
lowed as a credit for each group of individuals with 
respect to which such percentage is separately stated 
or determined in a manner designed to substantially 
increase workforce participation. 
‘‘(3) SPECIFIED MATCHING AMOUNT.—For pur-
poses of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘specified 
matching amount’ means, with respect to any 
calendar year, the lesser of— 
‘‘(i) the excess (if any) of— 
‘‘(I) the cost to Puerto Rico of the 
earned income tax credit for taxable 
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years beginning in or with such cal-
endar year, over 
‘‘(II) the base amount for such 
calendar year, or 
‘‘(ii) the product of 3, multiplied by 
the base amount for such calendar year. 
‘‘(B) BASE AMOUNT.— 
‘‘(i) BASE AMOUNT FOR 2020.—In the 
case of calendar year 2020, the term ‘base 
amount’ means the greater of— 
‘‘(I) the cost to Puerto Rico of the 
earned income tax credit for taxable 
years beginning in or with calendar 
year 2019 (rounded to the nearest mul-
tiple of $1,000,000), or 
‘‘(II) $200,000,000. 
‘‘(ii) INFLATION ADJUSTMENT.—In the 
case of any calendar year after 2020, the 
term ‘base amount’ means the dollar 
amount determined under clause (i) in-
creased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by— 
‘‘(II) the cost-of-living adjustment 
determined under section 1(f)(3) for 
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such calendar year, determined by sub-
stituting ‘calendar year 2019’ for ‘cal-
endar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any amount determined under this clause 
shall be rounded to the nearest multiple of 
$1,000,000. 
‘‘(4) RULES RELATED TO PAYMENTS AND RE-
PORTS.— 
‘‘(A) TIMING OF PAYMENTS.—The Secretary 
shall make payments under paragraph (1) for 
any calendar year— 
‘‘(i) after receipt of the report described 
in subparagraph (B) for such calendar 
year, and 
‘‘(ii) except as provided in clause (i), 
within a reasonable period of time before 
the due date for individual income tax re-
turns (as determined under the laws of 
Puerto Rico) for taxable years which began 
on the first day of such calendar year. 
‘‘(B) ANNUAL
REPORTS.—With respect to 
calendar year 2020 and each calendar year 
thereafter, Puerto Rico shall provide to the Sec-
retary a report which shall include— 
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‘‘(i) an estimate of the costs described 
in paragraphs (1)(B)(i) and (3)(A)(i)(I) 
with respect to such calendar year, and 
‘‘(ii) a statement of such costs with re-
spect to the preceding calendar year. 
‘‘(C) ADJUSTMENTS.— 
‘‘(i) IN GENERAL.—In the event that 
any estimate of an amount is more or less 
than the actual amount as later determined 
and any payment under paragraph (1) was 
determined on the basis of such estimate, 
proper payment shall be made by, or to, the 
Secretary (as the case may be) as soon as 
practicable after the determination that 
such estimate was inaccurate. Proper ad-
justment shall be made in the amount of 
any subsequent payments made under para-
graph (1) to the extent that proper payment 
is not made under the preceding sentence 
before such subsequent payments. 
‘‘(ii) ADDITIONAL REPORTS.—The Sec-
retary may require such additional periodic 
reports of the information described in sub-
paragraph (B) as the Secretary determines 
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appropriate to facilitate timely adjustments 
under clause (i). 
‘‘(D) DETERMINATION OF COST OF EARNED 
INCOME TAX CREDIT.—For purposes of this sub-
section, the cost to Puerto Rico of the earned in-
come tax credit shall be determined by the Sec-
retary on the basis of the laws of Puerto Rico 
and shall include reductions in revenues received 
by Puerto Rico by reason of such credit and re-
funds attributable to such credit, but shall not 
include any administrative costs with respect to 
such credit. 
‘‘(E) PREVENTION
OF
MANIPULATION
OF 
BASE
AMOUNT.—No payments shall be made 
under paragraph (1) if the earned income tax 
credit as in effect in Puerto Rico for taxable 
years beginning in or with calendar year 2019 
is modified after the date of the enactment of this 
subsection. 
‘‘(b) POSSESSIONS WITH MIRROR CODE TAX SYS-
TEMS.— 
‘‘(1) IN
GENERAL.—With respect to calendar 
year 2020 and each calendar year thereafter, the Sec-
retary shall, except as otherwise provided in this sub-
section, make payments to the Virgin Islands, Guam, 
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and the Commonwealth of the Northern Mariana Is-
lands equal to— 
‘‘(A) 75 percent of the cost to such posses-
sion of the earned income tax credit for taxable 
years beginning in or with such calendar year, 
plus 
‘‘(B) in the case of calendar years 2020 
through 2024, the lesser of— 
‘‘(i) the expenditures made by such 
possession during such calendar year for 
education efforts with respect to individual 
taxpayers and tax return preparers relating 
to such earned income tax credit, or 
‘‘(ii) $50,000. 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subparagraphs (A), (B), (C), 
and (D) of subsection (a)(4) shall apply for purposes 
of this subsection. 
‘‘(c) AMERICAN SAMOA.— 
‘‘(1) IN
GENERAL.—With respect to calendar 
year 2020 and each calendar year thereafter, the Sec-
retary shall, except as otherwise provided in this sub-
section, make payments to American Samoa equal 
to— 
‘‘(A) the lesser of— 
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‘‘(i) 75 percent of the cost to American 
Samoa of the earned income tax credit for 
taxable years beginning in or with such cal-
endar year, or 
‘‘(ii) $12,000,000, plus 
‘‘(B) in the case of calendar years 2020 
through 2024, the lesser of— 
‘‘(i) the expenditures made by Amer-
ican Samoa during such calendar year for 
education efforts with respect to individual 
taxpayers and tax return preparers relating 
to such earned income tax credit, or 
‘‘(ii) $50,000. 
‘‘(2) REQUIREMENT TO ENACT AND MAINTAIN AN 
EARNED INCOME TAX CREDIT.—The Secretary shall 
not make any payments under paragraph (1) with 
respect to any calendar year unless American Samoa 
has in effect an earned income tax credit for taxable 
years beginning in or with such calendar year which 
allows a refundable tax credit to individuals on the 
basis of the taxpayer’s earned income which is de-
signed to substantially increase workforce participa-
tion. 
‘‘(3) INFLATION
ADJUSTMENT.—In the case of 
any calendar year after 2020, the $12,000,000 
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amount in paragraph (1)(A)(ii) shall be increased by 
an amount equal to— 
‘‘(A) such dollar amount, multiplied by— 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for such calendar 
year, determined by substituting ‘calendar year 
2019’ for ‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any increase determined under this clause shall be 
rounded to the nearest multiple of $100,000. 
‘‘(4) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subparagraphs (A), (B), (C), 
and (D) of subsection (a)(4) shall apply for purposes 
of this subsection. 
‘‘(d) TREATMENT OF PAYMENTS.—For purposes of sec-
tion 1324 of title 31, United States Code, the payments 
under this section shall be treated in the same manner as 
a refund due from a credit provision referred to in sub-
section (b)(2) of such section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
chapter 77 of such Code is amended by adding at the end 
the following new item: 
‘‘Sec. 7529. Application of earned income tax credit to possessions of the United 
States.’’. 
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TITLE II—CHILD TAX CREDIT 
SEC. 201. CHILD TAX CREDIT FULLY REFUNDABLE FOR 2019 
AND 2020. 
(a) IN GENERAL.—Section 24(h) is amended by add-
ing at the end the following new paragraph: 
‘‘(8) CREDIT FULLY REFUNDABLE FOR 2019 AND 
2020.—In the case of an individual other than a non-
resident alien, for any taxable year beginning in 2019 
or 2020— 
‘‘(A) paragraph (5) of this subsection shall 
not apply, and 
‘‘(B) the increase determined under the first 
sentence of subsection (d)(1) shall be the amount 
determined under subparagraph (A) of such sub-
section (determined without regard to paragraph 
(4) of this subsection).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2018. 
SEC. 202. PAYMENTS TO POSSESSIONS. 
(a) MIRROR CODE POSSESSION.—The Secretary of the 
Treasury shall pay to each possession of the United States 
with a mirror code tax system amounts equal to the loss 
to that possession by reason of the application of section 
24 of the Internal Revenue Code of 1986 with respect to 
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taxable years beginning after 2018. Such amounts shall be 
determined by the Secretary of the Treasury based on infor-
mation provided by the government of the respective posses-
sion. 
(b) OTHER
POSSESSIONS.—The Secretary of the 
Treasury shall pay to each possession of the United States 
which does not have a mirror code tax system amounts esti-
mated by the Secretary of the Treasury as being equal to 
the aggregate benefits that would have been provided to resi-
dents of such possession by reason of the application of sec-
tion 24 of such Code for taxable years beginning after 2018 
if the provisions of such section had been in effect in such 
possession. The preceding sentence shall not apply with re-
spect to any possession of the United States unless such pos-
session has a plan, which has been approved by the Sec-
retary of the Treasury, under which such possession will 
promptly distribute such payments to the residents of such 
possession in a manner which replicates to the greatest de-
gree practicable the benefits that would have been so pro-
vided to each such resident. 
(c) COORDINATION WITH CREDIT ALLOWED AGAINST 
UNITED STATES INCOME TAXES.— 
(1) IN
GENERAL.—No credit shall be allowed 
against United States income taxes for any taxable 
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year under section 24 of the Internal Revenue Code 
of 1986 to any person— 
(A) to whom a credit is allowed against 
taxes imposed by a possession with a mirror code 
tax system by reason of the application of section 
24 of such Code in such possession for such tax-
able year, or 
(B) who is eligible for a payment under a 
plan described in subsection (b) with respect to 
such taxable year. 
(2) RESTRICTION ON REFUNDABLE CREDIT.—In 
the case of any person to whom a credit would be al-
lowed against taxes imposed by a possession which 
does not have a mirror code tax system if the provi-
sions of such section 24 had been in effect in such pos-
session for the taxable year (and who is not described 
in paragraph (1)(B)), section 24(h)(8) of such Code 
(as added by this Act) shall not apply to such person 
for such taxable year. 
(d) DEFINITIONS AND SPECIAL RULES.— 
(1) POSSESSION OF THE UNITED STATES.—For 
purposes of this section, the term ‘‘possession of the 
United States’’ includes the Commonwealth of Puerto 
Rico and the Commonwealth of the Northern Mariana 
Islands. 
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(2) MIRROR CODE TAX SYSTEM.—For purposes 
of this section, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
States, the income tax system of such possession if the 
income tax liability of the residents of such possession 
under such system is determined by reference to the 
income tax laws of the United States as if such pos-
session were the United States. 
(3) TREATMENT OF PAYMENTS.—For purposes of 
section 1324(b)(2) of title 31, United States Code, the 
payments under this section shall be treated in the 
same manner as a refund due from the credit allowed 
under section 24 of the Internal Revenue Code of 
1986. 
SEC. 203. INCREASED CHILD TAX CREDIT FOR CHILDREN 
WHO HAVE NOT ATTAINED AGE 4. 
(a) IN GENERAL.—Section 24(h)(2) is amended to 
read to as follows: 
‘‘(2) CREDIT AMOUNT.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), subsection (a) shall be ap-
plied by substituting ‘$2,000’ for ‘$1,000’. 
‘‘(B) TAXABLE YEARS BEGINNING IN 2019 
AND 2020.—In the case of any taxable year begin-
ning in 2019 or 2020, subsection (a) shall be ap-
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plied by substituting ‘$2,000 ($3,000 in the case 
of a qualifying child who has not attained age 
4 as of the close of the calendar year in which 
the taxable year of the taxpayer begins)’ for 
‘$1,000’.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2018. 
TITLE III—DEPENDENT CARE 
ASSISTANCE 
SEC. 301. REFUNDABILITY AND ENHANCEMENT OF CHILD 
AND DEPENDENT CARE TAX CREDIT. 
(a) IN GENERAL.—Section 21 is amended by adding 
at the end the following new subsection: 
‘‘(g) SPECIAL RULES FOR 2019 AND 2020.—In the case 
of any taxable year beginning in 2019 or 2020— 
‘‘(1) CREDIT MADE REFUNDABLE.—In the case of 
an individual other than a nonresident alien, the 
credit allowed under subsection (a) shall be treated as 
a credit allowed under subpart C (and not allowed 
under this subpart). 
‘‘(2) INCREASE IN APPLICABLE PERCENTAGE.— 
Subsection (a)(2) shall be applied— 
‘‘(A) by substituting ‘50 percent’ for ‘35 
percent ’, and 
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‘‘(B) 
by 
substituting 
‘$120,000’ 
for 
‘$15,000’. 
‘‘(3) INCREASE IN DOLLAR LIMIT ON AMOUNT 
CREDITABLE.—Subsection (c) shall be applied— 
‘‘(A) by substituting ‘$6,000’ for ‘$3,000’ in 
paragraph (1) thereof, and 
‘‘(B) by substituting ‘twice the amount in 
effect under paragraph (1)’ for ‘$6,000’ in para-
graph (2) thereof. 
‘‘(4) 
INFLATION
ADJUSTMENT
OF
DOLLAR 
AMOUNTS.—In the case of any taxable year beginning 
after 2019, the $120,000 amount in paragraph (2)(B) 
and the $6,000 amount in paragraph (3)(A) shall 
each be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar year 
in which the taxable year begins, determined by 
substituting ‘2018’ for ‘2016’ in subparagraph 
(A)(ii) thereof. 
If any increase determined under this paragraph is 
not a multiple of $100, such increase shall be rounded 
to the next lowest multiple of $100. 
‘‘(5) INCOME LIMITATION.— 
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‘‘(A) IN GENERAL.—Paragraphs (1) through 
(4) of this subsection shall not apply to any tax-
payer for any taxable year if the modified ad-
justed gross income of such taxpayer for such 
taxable year exceeds $1,000,000. 
‘‘(B) MODIFIED
ADJUSTED
GROSS
IN-
COME.—For purposes of this paragraph, the 
term ‘modified adjusted gross income’ means ad-
justed gross income determined without regard to 
sections 911, 931, and 933.’’. 
(b) CONFORMING AMENDMENT.—Section 1324(b)(2) of 
title 31, United States Code, is amended by inserting ‘‘21 
(by reason of subsection (g) thereof),’’ before ‘‘25A’’. 
(c) COORDINATION
WITH
POSSESSION
TAX
SYS-
TEMS.—Section 21(g)(1) of the Internal Revenue Code of 
1986 (as added by this section) shall not apply to any per-
son— 
(1) to whom a credit is allowed against taxes 
imposed by a possession with a mirror code tax sys-
tem by reason of the application of section 21 of such 
Code in such possession for such taxable year, or 
(2) to whom a credit would be allowed against 
taxes imposed by a possession which does not have a 
mirror code tax system if the provisions of section 21 
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of such Code had been in effect in such possession for 
such taxable year. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2018. 
SEC. 302. INCREASE IN EXCLUSION FOR EMPLOYER-PRO-
VIDED DEPENDENT CARE ASSISTANCE. 
(a) IN GENERAL.—Section 129(a)(2) is amended by 
adding at the end the following new subparagraph: 
‘‘(D) SPECIAL RULE FOR 2020 AND 2021.—In 
the case of any taxable year beginning in 2020 
or 2021— 
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall be applied be substituting ‘$10,500 
(half such dollar amount’ for ‘$5,000 
($2,500’. 
‘‘(ii) INFLATION ADJUSTMENT.—In the 
case of any taxable year beginning after 
2020, the $10,500 amount in clause (i) shall 
be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjustment 
determined under section 1(f)(3) for 
the calendar year in which the taxable 
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year begins, determined by substituting 
‘2019’ for ‘2016’ in subparagraph 
(A)(ii) thereof. 
Any increase determined under the pre-
ceding sentence which is not a multiple of 
$50, shall be rounded to the nearest mul-
tiple of $50.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
TITLE IV—CERTAIN FRINGE 
BENEFIT EXPENSES 
SEC. 401. REPEAL OF INCLUSION OF CERTAIN FRINGE BEN-
EFIT EXPENSES IN UNRELATED BUSINESS 
TAXABLE INCOME. 
(a) IN GENERAL.—Section 512(a) is amended by strik-
ing paragraph (7). 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect as if included in the amendments 
made by section 13703 of Public Law 115–97. 
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Union Calendar No. 307 
116TH CONGRESS 
2D SESSION 
H. R. 3300 
[Report No. 116–384] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
provide tax relief for workers and families, and 
for other purposes. 
FEBRUARY 4, 2020 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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