To amend the Internal Revenue Code of 1986 to inflation adjust the $5,000 limitation with respect to dependent care assistance programs and flexible spending arrangements.

Bill: 115-hr-775
Sponsor: full_name: Rep. Moolenaar, John R. [R-MI-4]
Introduced: 2017-01-31
Policy area: Taxation
Subjects: Child care and development

Disability and paralysis

Employee benefits and pensions

Income tax exclusion

Inflation and prices
Latest action: action_date: 2017-01-31
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2017-01-31
action_desc: Introduced in House
text: <p>This bill amends the Internal Revenue Code to provide for an annual adjustment for inflation in taxable years beginning after 2017 to the $5,000 exclusion from the gross income of employees who receive employer-provided dependent care assistance. </p>

tv_txt: I 115th CONGRESS 1st Session H. R. 775 IN THE HOUSE OF REPRESENTATIVES January 31, 2017 Mr. Moolenaar 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 inflation adjust the $5,000 limitation with respect to dependent care assistance programs and flexible spending arrangements.

1. Inflation adjustment for dependent care assistance programs and flexible spending arrangements (a) In general Section 129(a)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (D) Inflation adjustment In the case of any taxable year beginning after December 31, 2017, the dollar amounts in subparagraph (A) shall be increased by an amount equal to— (i) such amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins by substituting calendar year 2014 for calendar year 1992 in subparagraph (B) thereof. If any increase determined under this paragraph is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2017.