Family and Community Inflation Relief Act of 2022
Bill: S.4589 | Sponsor: Sen. Grassley, Chuck (R-IA)
Policy area: Taxation

Summary:
Family and Community Inflation Relief Act of 2022
This bill provides for an inflation adjustment to the amount of (1) the child tax credit, (2) the tax credit for expenses for household and dependent care services, (3) the American Opportunity and Lifetime Learning tax credits, and (4) the tax deduction for interest on education loans.
The bill grants the Internal Revenue Service authority to adjust the standard mileage rate for the use of an automobile for charitable purposes (such rate may not be less than the rate used for purposes of the medical expense deduction). It also extends for one year the suspension of the tax deduction for state and local taxes.

To amend the Internal Revenue Code of 1986 to adjust certain credits 
                     and deductions for inflation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family and Community Inflation 
Relief Act of 2022''.

SEC. 2. CHILD TAX CREDIT.

    (a) In General.--Subsection (f) of section 24 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``Taxable Year Must Be Full Taxable Year.--
        Except'' and inserting ``Special Rules.--
            ``(1) Taxable year must be full taxable year.--Except'', 
        and
            (2) by adding at the end the following new paragraph:
            ``(2) Adjustment for inflation.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2021, the $1,000 amount in subsection 
                (a) and each of the dollar amounts in subsection (b)(2) 
                shall be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(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 `2020' for `2016' in 
                        subparagraph (A)(ii) thereof.
                    ``(B) Rounding.--If any increase under subparagraph 
                (A)--
                            ``(i) is not a multiple of $100, in the 
                        case of the amount in subsection (a), such 
                        increase shall be rounded to the next lowest 
                        multiple of $100, or
                            ``(ii) is not a multiple of $1,000, in the 
                        case of the amounts in subsection (b)(2), such 
                        increase shall be rounded to the next lowest 
                        multiple of $1,000.''.
    (b) Special Rules for Taxable Years Through 2025.--
            (1) In general.--Subsection (h) of section 24 of such Code 
        is amended by adding at the end the following new paragraph:
            ``(8) Adjustment for inflation.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2021, the $2,000 amount in paragraph 
                (2) and each of the dollar amounts in paragraph (3) 
                shall be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(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 `2020' for `2016' in 
                        subparagraph (A)(ii) thereof.
                    ``(B) Rounding.--If any increase under subparagraph 
                (A)--
                            ``(i) is not a multiple of $100, in the 
                        case of the amount in paragraph (2), such 
                        increase shall be rounded to the next lowest 
                        multiple of $100, or
                            ``(ii) is not a multiple of $1,000, in the 
                        case of the amounts in paragraph (3), such 
                        increase shall be rounded to the next lowest 
                        multiple of $1,000.''.
            (2) Partial credit for certain other dependents.--Paragraph 
        (4) of section 24(h) of such Code is amended by adding at the 
        end the following new subparagraph:
                    ``(D) Adjustment for inflation.--In the case of a 
                taxable year beginning after 2021, the $500 amount in 
                subparagraph (A) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(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 `2020' for `2016' in 
                        subparagraph (A)(ii) thereof.
                If any increase under this paragraph is not a multiple 
                of $50, such increase shall be rounded to the next 
                lowest multiple of $50.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.

SEC. 3. CREDIT FOR HOUSEHOLD AND DEPENDENT CARE SERVICES.

    (a) In General.--Subsection (e) of section 21 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(11) Adjustments for inflation.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2021, the $15,000 amount in subsection 
                (a)(2) and the $3,000 and $6,000 amounts in subsection 
                (c) shall each be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(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 `2020' for `2016' in 
                        subparagraph (A)(ii) thereof.
                    ``(B) Rounding.--If any increase under subparagraph 
                (A)--
                            ``(i) is not a multiple of $100, in the 
                        case of the amounts in subsection (c), such 
                        increase shall be rounded to the next lowest 
                        multiple of $100, or
                            ``(ii) is not a multiple of $1,000, in the 
                        case of the amount in subsection (a)(2), such 
                        increase shall be rounded to the next lowest 
                        multiple of $1,000.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2021.

SEC. 4. AMERICAN OPPORTUNITY AND LIFETIME LEARNING CREDITS.

    (a) American Opportunity Tax Credit.--Subsection (b) of section 25A 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new paragraph:
            ``(5) Adjustment for inflation.--In the case of a taxable 
        year beginning after 2021, the $2,000 and $4,000 amounts in 
        paragraph (1) shall each be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `2020' for `2016' in subparagraph (A)(ii) thereof.
        If any increase under this paragraph is not a multiple of $100, 
        such increase shall be rounded to the next lowest multiple of 
        $100.''.
    (b) Lifetime Learning Credit.--Subsection (c) of section 25A of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(3) Adjustment for inflation.--In the case of a taxable 
        year beginning after 2021, the $10,000 amount in paragraph (1) 
        shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `2020' for `2016' in subparagraph (A)(ii) thereof.
        If any increase under this paragraph is not a multiple of $100, 
        such increase shall be rounded to the next lowest multiple of 
        $100.''.
    (c) Limitations Based on Modified Adjusted Gross Income.--
Subsection (d) of section 25A of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph:
            ``(3) Adjustment for inflation.--In the case of a taxable 
        year beginning after 2021, each of the dollar amounts in 
        paragraph (1) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `2020' for `2016' in subparagraph (A)(ii) thereof.
        If any increase under this paragraph is not a multiple of 
        $1,000, such increase shall be rounded to the next lowest 
        multiple of $1,000.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.

SEC. 5. DEDUCTION FOR INTEREST ON EDUCATION LOANS.

    (a) In General.--Subsection (f) of section 221 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(f) Adjustments for Inflation.--
            ``(1) In general.--In the case of a taxable year beginning 
        after 2002, each of the dollar amounts in subsection (b) shall 
        be increased by an amount equal to--
                    ``(A) in the case of the $2,500 amount in 
                subsection (b)(1) and the $15,000 and $30,000 amounts 
                in subsection (b)(2)(B)(ii)--
                            ``(i) such dollar amount, multiplied by
                            ``(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 `2020' for `2016' in 
                        subparagraph (A)(ii) thereof, and
                    ``(B) in the case of the $50,000 and $100,000 
                amounts in subsection (b)(2)(B)(i)(II)--
                            ``(i) such dollar amount, multiplied by
                            ``(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 `2001' for `2016' in 
                        subparagraph (A)(ii) thereof.
            ``(2) Rounding.--If any increase under paragraph (1)--
                    ``(A) is not a multiple of $100, in the case of the 
                amount in subsection (b)(1), such increase shall be 
                rounded to the next lowest multiple of $100, or
                    ``(B) is not a multiple of $1,000, in the case of 
                the amounts in subsection (b)(2)(B)(ii) and 
                (b)(2)(B)(i)(II), such increase shall be rounded to the 
                next lowest multiple of $1,000.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2021.

SEC. 6. DETERMINATION OF STANDARD MILEAGE RATE FOR CHARITABLE 
              CONTRIBUTIONS DEDUCTION.

    (a) In General.--Subsection (i) of section 170 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(i) Standard Mileage Rate for Use of Passenger Automobile.--For 
purposes of computing the deduction under this section for use of a 
passenger automobile, the standard mileage rate shall be the rate 
determined by the Secretary, which rate shall not be less than the 
standard mileage rate used for purposes of section 213.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to miles traveled after the date of the enactment of this Act.

SEC. 7. EXTENSION OF LIMITATION ON DEDUCTION OF STATE AND LOCAL TAXES.

    Paragraph (6) of section 164(b) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``2025'' in the heading and inserting 
        ``2026'', and
            (2) by striking ``January 1, 2026'' and inserting ``January 
        1, 2027''.
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