,i #aafth ,,congress #ast ,session ,h4 ,r4 #bhgi ,,in ,,the ,,house ,,of ,,representatives ,may #ba1 #bjai,ms4 ,snchez 7for herself and ,mr4 ,kelly of ,pennsylvania7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide further tax incentives for dependent care assistance4 #a4 ,short title ,this ,act may be cited as the ,working ,families ,relief ,act4 #b4 ,expansion of exclusion for dependent care assistance programs 7a7 ,in general ,section #abi7;a77#b77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking shall not exceed #e1jjj 7#b1ejj in the case of a separate return by a married individual74 and inserting shall not exceed-- 7i7 except as provided in clause 7ii71 #aj1ejj1 and 7ii7 in the case of a separate return by a married individual1 the amount in effect for the taxable year under clause 7i74 4 7b7 ,inflation adjustment ,section #abi7;a77#b7 of such ,code is amended by adding at the end the following new subparagraph3 7,d7 ,adjustment for inflation ,in the case of taxable years beginning after ,december #ca1 #bjbj1 the #aj1ejj amount under subparagraph 7,a77i7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,if any amount as adjusted under the preceding sentence is not a multiple of #ajj1 such amount shall be rounded to the next lowest multiple of #ajj4 4 7c7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjai4 #c4 ,allowance of credit for small employer dependent care assistance program start-up costs 7a7 ,in general ,section #de;,e of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking pension plan in subsection 7a7 and inserting employee benefit1 and 7#b7 by adding at the end the following new subsection3 7f7 ,application to dependent care assistance programs 7#a7 ,in general ,a dependent care assistance program of an eligible employer which meets the requirements of section #abi7;d7 shall be treated as an eligible employer plan for purposes of this section4 7#b7 ,separate application ,this section 7including the limitation under subsection 7b77 shall be applied separately with respect to any such dependent care assistance program of the eligible employer and other eligible employer plans of such eligible employer4 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b77#ad7 of the ,internal ,revenue ,code of #aihf is amended by striking pension plan and inserting employee benefit4 7#b7 ,the heading for section #de;,e of such ,code is amended by striking pension plan and inserting employee benefit4 7#c7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by striking pension plan in the item relating to section #de;,e and inserting employee benefit4 7c7 ,effective date ,the amendments made by this section shall apply to costs paid or incurred in taxable years beginning after ,december #ca1 #bjai1 with respect to dependent care assistance programs first effective after such date4 #d4 ,credit for matching dependent care assistance program contributions by employers 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #de,s the following new section3 #de,t4 ,credit for employer dependent care assistance program matching contributions 7a7 ,in general ,for purposes of section #ch1 the employer dependent care assistance matching contribution credit determined under this section for any taxable year is an amount equal to the lesser of-- 7#a7 the amount of contributions made by the employer with respect to employees to a dependent care assistance program that meets the requirements of section #abi7;d71 or 7#b7 the amount of contributions to such dependent care assistance program elected by such employees under a cafeteria plan of the employer to which section #abe applies4 7b7 ,limitation ,the credit allowed under subsection 7a7 for any taxable year with respect to any employee shall not exceed #a1jjj4 7c7 ,definitions ,any term used in this section which is used in section #abi shall have the meaning given such term under section #abi4 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cc7 the employer dependent care assistance matching contribution credit determined under section #de,t7a74 4 7#b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #de,s the following new item3 ,sec4 #de,t4 ,credit for employer dependent care assistance program matching contributions4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4