Child and Dependent Care FSA Enhancement Act

Bill: 113-s-2997
Sponsor: full_name: Sen. Burr, Richard [R-NC]
Introduced: 2014-12-10
Policy area: Taxation
Subjects: Adult day care

Child care and development

Employee benefits and pensions

Income tax exclusion

Inflation and prices
Latest action: action_date: 2014-12-10
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2014-12-10
action_desc: Introduced in Senate
text: <p>Child and Dependent Care FSA Enhancement Act - Amends the Internal Revenue Code to increase to $7,500 the amount of employer-provided dependent care assistance that an employee may exclude from gross income. Allows an annual inflation adjustment to such increased amount after 2015. </p>

tv_txt: II 113th CONGRESS 2d Session S. 2997 IN THE SENATE OF THE UNITED STATES December 10, 2014 Mr. Burr (for himself and Mrs. Gillibrand ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to increase the exclusion for employer-provided dependent care assistance.

1. Short title This Act may be cited as the Child and Dependent Care FSA Enhancement Act . 2. Increase in exclusion for employer-provided dependent care assistance (a) In general Subparagraph (A) of section 129(a)(2) of the Internal Revenue Code of 1986 (relating to dependent care assistance programs) is amended by striking $5,000 ($2,500 and inserting $7,500 (half such dollar amount . (b) Inflation adjustment Paragraph (2) of section 129(a) of such Code is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph: (C) Inflation adjustment In the case of any taxable year beginning in a calendar year after 2015, the $7,500 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 calendar year 2014 for calendar year 1992 in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100. . (c) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014.