,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #ccig  ,,in ,,the ,,house ,,of  
,,representatives  ,june #bj1 #bjai     
,mrs4 ,wagner 7for herself1 ,mr4 ,king  
of ,new ,york1 ,mr4 ,stivers1 and ,mr4  
,rodney ,davis of ,illinois7 introduced 
the following bill2 which was referred  
to the ,committee on ,ways and ,means   
,a ,,bill  ,to amend the ,internal      
,revenue ,code to increase the exclusion
 for employer-provided dependent care   
assistance and to allow individuals to  
carry forward dependent care flexible   
spending arrangement account balances4  
#a4 ,short title ,this ,act may be cited
 as the ,child and ,dependent ,care     
,modernization ,act of #bjai4  #b4      
,increase in exclusion for              
employer-provided dependent care        
assistance  7a7 ,in general ,section    
#abi7;a77#b7 of the ,internal ,revenue  
,code of #aihf is amended--  7#a7 by    
striking shall not exceed in            
subparagraph 7,a7 and all that follows  
and inserting the following3 shall not  

exceed--  7i7 #h1jjj 7half such dollar  
amount in the case of a separate return 
by a married individual7 if there is #a 
qualifying individual with respect to   
the taxpayer during such taxable year1  
or  7ii7 #af1jjj 7half such dollar      
amount in the case of such a separate   
return7 if there are #b or more         
qualifying individuals with respect to  
the taxpayer during such taxable year4  
1 and  7#b7 by adding at the end the    
following new subparagraph3  7,d7       
,qualifying individual ,for purposes of 
this paragraph1 the term qualifying     
individual has the meaning given to such
 term under section #ba7;b77#a74  4  7b7
 ,inflation adjustment ,section         
#abi7;a77#b7 of such ,code is amended by
 redesignating subparagraph 7,c7 as     
subparagraph 7,d7 and by inserting after
 subparagraph 7,b7 the following new    
subparagraph3  7,c7 ,inflation          
adjustment ,in the case of any taxable  
year beginning in a calendar year after 
#bjbj1 the dollar amounts in            

subparagraph 7,a7 shall each 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 
,any increase determined under the      
preceding sentence shall be rounded to  
the nearest multiple of #ajj4  4  7c7   
,effective date ,the amendment made by  
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjai4  #c4 ,carryforward for dependent 
care flexible spending arrangement      
account balance  7a7 ,in general        
,section #abe of the ,internal ,revenue 
,code of #aihf is amended by            
redesignating subsections 7k7 and 7l7 as
 subsections 7l7 and 7m71 respectively1 
and by inserting after subsection 7j7   
the following new subsection3  7k7      
,carryforward ,for purposes of this     

title1 a plan or other arrangement shall
 not fail to be treated as a cafeteria  
plan or flexible spending arrangement   
for a plan year merely because such     
arrangement provides that an amount not 
exceeding the amount with respect to    
such individual under section           
#abi7;a77#b7 in effect for the          
succeeding plan year may be carried     
forward to the succeeding plan year4  4 
7b7 ,effective date ,the amendments made
 by this section shall apply to taxable 
years beginning after ,december #ca1    
#bjai4