Families First Act

Bill: 113-hr-5258
Sponsor: full_name: Rep. Capito, Shelley Moore [R-WV-2]
Introduced: 2014-07-30
Policy area: Taxation
Subjects: Adult day care

Child care and development

Employee benefits and pensions

Income tax credits

Income tax exclusion

Inflation and prices

Tax treatment of families
Latest action: action_date: 2014-07-30
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2014-07-30
action_desc: Introduced in House
text: <p>Families First Act - Amends the Internal Revenue Code to allow an adjustment for inflation in calendar years after 2014 to amounts allowed&nbsp;with respect to&nbsp;the tax credit for dependent care expenses necessary for employment and&nbsp;the exclusion from gross income for employer-provided dependent care&nbsp;assistance. </p>

tv_txt: I 113th CONGRESS 2d Session H. R. 5258 IN THE HOUSE OF REPRESENTATIVES July 30, 2014 Mrs. Capito (for herself, Mrs. McMorris Rodgers , Mrs. Wagner , Mrs. Ellmers , Mrs. Bachmann , Mr. Valadao , Mr. Rodney Davis of Illinois , Ms. Granger , Mrs. Lummis , and Mr. Fitzpatrick ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to index the dependent care credit and income exclusion for inflation.

1. Short title This Act may be cited as the Families First Act . 2. Inflation adjustments of credit and exclusion for dependent care expenses (a) Credit (1) In general Section 21(e) of the Internal Revenue Code of 1986 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 2014, the dollar amounts in subsections (a)(2) and (c)(2) 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 calendar year 2013 for calendar year 1992 in subparagraph (B) thereof. (B) Rounding Any increase determined under subparagraph (A) shall be rounded to the nearest multiple of $10. . (2) Dollar limit on amount creditable Section 21(c)(1) of the Internal Revenue Code of 1986 is amended by striking $3,000 and inserting 50 percent of the amount in effect under paragraph (2) for the taxable year . (b) Exclusion (1) In general Section 129(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (10) Inflation adjustment (A) In general In the case of any taxable year beginning in a calendar year after 2014, the dollar amount in subsection (a)(2)(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 2013 for calendar year 1992 in subparagraph (B) thereof. (B) Rounding Any increase determined under subparagraph (A) shall be rounded to the nearest multiple of $10. . (2) Limitation on exclusion Section 129(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking $2,500 and inserting 50 percent of such amount . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014.