,i  #aah? ,,congress  #a/ ,session  ,h4 
,r4 #dega  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #ab1 #bjbc ,mr4 
,c>bajal 7= himself & ,mrs4             
,*avez-,de,remer7 introduc$ ! foll[+    
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means  ,a ,,bill  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to exp& !
 employ]-provid$ *ild c>e cr$it & !     
dep5d5t c>e assi/ance exclusion4  #a4   
,%ort title ,?is ,act may be cit$ z !   
,*ild ,c>e ,inve/m5t ,act ( #bjbc4  #b4 
,expansion employ]-provid$ *ild c>e     
cr$it  7a7 ,increase ( am\nt ( qualifi$ 
*ild c>e exp5ditures tak5 into acc\nt   
,section #de;,f7a77#a7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
#be p]c5t & ins]t+ #ej p]c5t4  7b7      
,increase ( maximum cr$it am\nt ,section
 #de;,f7b7 ( su* ,code is am5d$ by /rik+
 #aej1jjj & ins]t+ #ejj1jjj4  7c7       
,treatm5t ( jo9tly own$ or op]at$       
*ildc>e facility ,section #de;,f7c77#a7 
( su* ,code is am5d$ by add+ at ! end ! 
foll[+ new subp>agraph3  7,c7 ,jo9tly   

own$ or op]at$ *ildc>e facility ,=      
purposes ( subp>agraph 7,a77i77,i71 a   
qualifi$ *ildc>e facility %all n fail to
 be treat$ z be+ ( ! taxpay] m]ely      
because su* facility is jo9tly own$ or  
op]at$ by ! taxpay] & o!r p]sons4  4    
7d7 ,9-,home *ildc>e s]vice exp5ses     
eligible = cr$it ,section               
#de;,f7c77#a77;,a77iii7 ( su* ,code is  
am5d$ by /rik+ facility & ins]t+        
provid]4  7e7 ,special rule = small     
bus9esses ,section #de;,f7e7 ( su* ,code
 is am5d$ by add+ at ! end ! foll[+ new 
p>agraph3  7#d7 ,small bus9esses ,9 !   
case ( a taxpay] t meets ! gross        
receipts te/ ( section #ddh7;c71 det]m9$
 aft] sub/itut+ #e-taxable-ye> =        
#c-taxable-ye> 9 su* section & #e-ye> = 
#c-ye> ea* place su* t]m appe>s 9       
p>agraph 7#c77;,a7 ( su* section--  7,a7
 subsection 7a77#a7 %all be appli$ by   
sub/itut+ #fj p]c5t = #ej p]c5t1 &  7,b7
 subsection 7b7 %all be appli$ by       
sub/itut+ #fjj1jjj = #ejj1jjj4  4  7f7  
,effective date ,! am5dm5ts made by ?is 

section %all apply to am\nts paid or    
incurr$ aft] ! date ( ! enactm5t ( ?is  
section4  #c4 ,increase 9 am\nt         
excludable = dep5d5t c>e assi/ance      
programs  7a7 ,section #abi7;a77#b77;,a7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by /rik+ #e1jjj 7#b1ejj & ins]t+ !
 applicable limitation am\nt 7half su*  
am\nt4  7b7 ,section #abi7;a77#b7 ( su* 
,code is am5d$ by add+ at ! end ! foll[+
 new subp>agraph3  7,e7 ,applicable     
limitation am\nt ,= purposes ( ?is      
p>agraph1 ! t]m applicable limitation   
am\nt means ! am\nt t is ! sum ( #aj1jjj
 plus #b1jjj = ea* individual describ$ 9
 subp>agraph 7,a7 or 7,b7 ( section     
#ba7;b77#a7 ) respect to su* taxpay]4  4
  7c7 ,effective date ,! am5dm5ts made  
by ?is section %all apply to am\nts paid
 or incurr$ aft] ! date ( ! enactm5t (  
?is section4  #d4 ,h\sehold & dep5d5t   
c>e cr$it increas$ & made refundable    
7a7 ,9 g5]al ,subp>t ,c ( "p ,,iv (     
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d+ by ins]t+

 aft] section #cf;,b ! foll[+ new       
section3  #cf;,c4 ,exp5ses = h\sehold & 
dep5d5t c>e s]vices necess>y = ga9ful   
employm5t  7a7 ,all[ance ( cr$it  7#a7  
,9 g5]al ,9 ! case ( an individual = :i*
 !re are #a or m qualify+ individuals ) 
respect to su* individual1 !re %all be  
all[$ z a cr$it aga9/ ! tax impos$ by   
?is *apt] = ! taxable ye> an am\nt equal
 to ! applicable p]c5tage ( !           
employm5t-relat$ exp5ses paid by su*    
individual dur+ ! taxable ye>4  7#b7    
,applicable p]c5tage def9$ ,= purposes (
 p>agraph 7#a71 ! t]m applicable        
p]c5tage means #ej p]c5t r$uc$ 7b n bel[
 #ce p]c5t7 by #a p]c5tage po9t = ea*   
#b1jjj 7or fraction !re(7 by :i* !      
taxpay]'s adju/$ gross income = !       
taxable ye> exce$s #ae1jjj4  7b7        
,def9itions ( qualify+ individual &     
employm5t-,relat$ exp5ses ,= purposes ( 
?is section-- 7#a7 ,qualify+ individual 
,! t]m qualify+ individual means--  7,a7
 a dep5d5t ( ! taxpay] 7z def9$ 9       
section #aeb7;a77#a77 :o has n atta9$   

age #ac1  7,b7 a dep5d5t ( ! taxpay] 7z 
def9$ 9 section #aeb1 det]m9$ )\t reg>d 
to subsections 7b77#a71 7b77#b71 &      
7d77#a77;,b77 :o is physically or       
m5tally incapable ( c>+ = himself or    
h]self & :o has ! same pr9cipal place ( 
abode z ! taxpay] = m ?an "o-half ( su* 
taxable ye>1 or  7,c7 ! sp\se ( !       
taxpay]1 if ! sp\se is physically or    
m5tally incapable ( c>+ = himself or    
h]self & :o has ! same pr9cipal place ( 
abode z ! taxpay] = m ?an "o-half ( su* 
taxable ye>4  7#b7 ,employm5t-relat$    
exp5ses  7,a7 ,9 g5]al ,! t]m           
employm5t-relat$ exp5ses means am\nts   
paid = ! foll[+ exp5ses1 b only if su*  
exp5ses are incurr$ to enable ! taxpay] 
to be ga9fully employ$ = any p]iod = :i*
 !re are #a or m qualify+ individuals ) 
respect to ! taxpay]3  7i7 exp5ses =    
h\sehold s]vices1 &  7ii7 exp5ses = !   
c>e ( a qualify+ individual4  ,su* t]m  
%all n include any am\nt paid = s]vices 
outside ! taxpay]'s h\sehold at a camp  
:]e ! qualify+ individual /ays ov]night4

  7,b7 ,exception ,employm5t-relat$     
exp5ses describ$ 9 subp>agraph 7,a7 :i* 
are incurr$ = s]vices outside !         
taxpay]'s h\sehold %all be tak5 into    
acc\nt only if incurr$ = ! c>e (-- 7i7 a
 qualify+ individual describ$ 9 p>agraph
 7#a77;,a71 or  7ii7 a qualify+         
individual 7n describ$ 9 p>agraph       
7#a77;,a77 :o regul>ly sp5ds at lea/ #h 
h\rs ea* day 9 ! taxpay]'s h\sehold4    
7,c7 ,dep5d5t c>e c5t]s                 
,employm5t-relat$ exp5ses describ$ 9    
subp>agraph 7,a7 :i* are incurr$ =      
s]vices provid$ outside ! taxpay]'s     
h\sehold by a dep5d5t c>e c5t] 7z def9$ 
9 subp>agraph 7,d77 %all be tak5 into   
acc\nt only if--  7i7 su* c5t] complies 
) all applicable laws & regulations ( a 
,/ate or unit ( local gov]nm5t1 &  7ii7 
! requirem5ts ( subp>agraph 7,b7 are    
met4  7,d7 ,dep5d5t c>e c5t] def9$ ,=   
purposes ( ?is p>agraph1 ! t]m dep5d5t  
c>e c5t] means any facility :i*-- 7i7   
provides c>e = m ?an six individuals    
7o!r ?an individuals :o reside at !     

facility71 &  7ii7 receives a fee1      
paym5t1 or grant = provid+ s]vices = any
 ( ! individuals 7reg>dless ( :e!r su*  
facility is op]at$ = pr(it74  7c7 ,doll>
 limit on am\nt cr$itable ,! am\nt ( !  
employm5t-relat$ exp5ses incurr$ dur+   
any taxable ye> :i* may be tak5 into    
acc\nt "u subsection 7a7 %all n exce$-- 
7#a7 #c1jjj if !re is #a qualify+       
individual ) respect to ! taxpay] = su* 
taxable ye>1 or  7#b7 #f1jjj if !re are 
#b or m qualify+ individuals ) respect  
to ! taxpay] = su* taxable ye>4  ,!     
am\nt det]m9$ "u p>agraph 7#a7 or 7#b7  
7:i*ev] is applicable7 %all be r$uc$ by 
! aggregate am\nt excludable f gross    
income "u section #abi = ! taxable ye>4 
7d7 ,e>n$ income limitation  7#a7 ,9    
g5]al ,except z o!rwise provid$ 9 ?is   
subsection1 ! am\nt ( ! employm5t-relat$
 exp5ses incurr$ dur+ any taxable ye>   
:i* may be tak5 into acc\nt "u          
subsection 7a7 %all n exce$-- 7,a7 9 !  
case ( an individual :o is n m>ri$ at ! 
close ( su* ye>1 su* individual's e>n$  

income = su* ye>1 or  7,b7 9 ! case ( an
 individual :o is m>ri$ at ! close ( su*
 ye>1 ! less] ( su* individual's e>n$   
income or ! e>n$ income ( 8 sp\se = su* 
ye>4  7#b7 ,special rule = sp\se :o is a
 /ud5t or incapable ( c>+ = himself ,9 !
 case ( a sp\se :o is a /ud5t or a      
qualify+ individual describ$ 9          
subsection 7b77#a77;,c71 = purposes (   
p>agraph 7#a71 su* sp\se %all be deem$ =
 ea* mon? dur+ :i* su* sp\se is a       
full-"t /ud5t at an educational         
in/itution1 or is su* a qualify+        
individual1 to be ga9fully employ$ & to 
h e>n$ income ( n less ?an--  7,a7 #bej 
if subsection 7c77#a7 applies = !       
taxable ye>1 or  7,b7 #ejj if subsection
 7c77#b7 applies = ! taxable ye>4  7e7  
,inflation adju/m5t  7#a7 ,9 g5]al ,9 ! 
case ( any taxable ye> beg9n+ aft]      
#bjbc1 ! doll> am\nts 9 ?is section %all
 be increas$ by an am\nt equal to-- 7,a7
 su* doll> am\nt1 multipli$ by  7,b7 !  
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye> 9 :i* !       

taxable ye> beg9s1 det]m9$ by sub/itut+ 
cal5d> ye> #bjbb = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii74  7#b7 ,r\nd+ ,if  
any increase "u p>agraph 7#a7 is n a    
multiple ( #aj1 su* increase %all be    
r\nd$ to ! ne>e/ multiple ( #aj4  7f7   
,special rules ,= purposes ( ?is        
section-- 7#a7 ,place ( abode ,an       
individual %all n be treat$ z hav+ !    
same pr9cipal place ( abode ( ! taxpay] 
if at any "t dur+ ! taxable ye> ( !     
taxpay] ! relation%ip betwe5 !          
individual & ! taxpay] is 9 violation ( 
local law4  7#b7 ,m>ri$ c\ples mu/ file 
jo9t return ,if ! taxpay] is m>ri$ at ! 
close ( ! taxable ye>1 ! cr$it %all be  
all[$ "u subsection 7a7 only if !       
taxpay] & 8 sp\se file a jo9t return = !
 taxable ye>4  7#c7 ,m>ital /atus ,an   
individual legally sep>at$ f 8 sp\se "u 
a decree ( divorce or ( sep>ate         
ma9t5ance %all n be consid]$ z m>ri$4   
7#d7 ,c]ta9 m>ri$ individuals liv+ ap>t 
,if-- 7,a7 an individual :o is m>ri$ &  
:o files a sep>ate return--  7i7 ma9ta9s

 z 8 home a h\sehold :i* con/itutes = m 
?an "o-half ( ! taxable ye> ! pr9cipal  
place ( abode ( a qualify+ individual1 &
  7ii7 furni%es ov] half ( ! co/ (      
ma9ta9+ su* h\sehold dur+ ! taxable ye>1
 &  7,b7 dur+ ! la/ #f mon?s ( su*      
taxable ye> su* individual's sp\se is n 
a memb] ( su* h\sehold1  su* individual 
%all n be consid]$ z m>ri$4  7#e7       
,special dep5d5cy te/ 9 case ( divorc$  
p>5ts1 etc ,if--  7,a7 section #aeb7;e7 
applies to any *ild ) respect to any    
cal5d> ye>1 &  7,b7 su* *ild is "u ! age
 ( #ac or is physically or m5tally      
incapable ( c>+ = himself1  9 ! case (  
any taxable ye> beg9n+ 9 su* cal5d> ye>1
 su* *ild %all be treat$ z a qualify+   
individual describ$ 9 subp>agraph 7,a7  
or 7,b7 ( subsection 7b77#a7 7:i*ev] is 
appropriate7 ) respect to ! cu/odial    
p>5t 7z def9$ 9 section                 
#aeb7;e77#d77;,a771 & %all n be treat$ z
 a qualify+ individual ) respect to !   
noncu/odial p>5t4  7#f7 ,paym5ts to     
relat$ individuals ,no cr$it %all be    

all[$ "u subsection 7a7 = any am\nt paid
 by ! taxpay] to an individual-- 7,a7 ) 
respect to :om1 = ! taxable ye>1 a      
d$uction "u section #aea7;c7 7relat+ to 
d$uction = p]sonal exemptions =         
dep5d5ts7 is all[able ei!r to ! taxpay] 
or 8 sp\se1 or  7,b7 :o is a *ild ( !   
taxpay] 7)9 ! mean+ ( section           
#aeb7;f77#a77 :o has n atta9$ ! age (   
#ai at ! close ( ! taxable ye>4  ,=     
purposes ( ?is p>agraph1 ! t]m taxable  
ye> means ! taxable ye> ( ! taxpay] 9   
:i* ! s]vice is p]=m$4  7#g7 ,/ud5t ,!  
t]m /ud5t means an individual :o dur+   
ea* ( #e cal5d> mon?s dur+ ! taxable ye>
 is a full-"t /ud5t at an educational   
organization4  7#h7 ,educational        
organization ,! t]m educational         
organization means an educational       
organization describ$ 9 section         
#agj7;b77#a77;,a77ii74  7#i7 ,id5tify+  
in=mation requir$ ) respect to s]vice   
provid] ,no cr$it %all be all[$ "u      
subsection 7a7 = any am\nt paid to any  
p]son unless--  7,a7 ! "n1 address1 &   

taxpay] id5tification numb] ( su* p]son 
are includ$ on ! return claim+ ! cr$it1 
or  7,b7 if su* p]son is an organization
 describ$ 9 section #eja7;c77#c7 &      
exempt f tax "u section #eja7;a71 ! "n &
 address ( su* p]son are includ$ on !   
return claim+ ! cr$it4  ,9 ! case ( a   
failure to provide ! in=mation requir$  
"u ! prec$+ s5t5ce1 ! prec$+ s5t5ce %all
 n apply if x is %[n t ! taxpay] ex]cis$
 due dilig5ce 9 attempt+ to provide !   
in=mation s requir$4  7#aj7 ,id5tify+   
in=mation requir$ ) respect to qualify+ 
individuals ,no cr$it %all be all[$ "u  
?is section ) respect to any qualify+   
individual unless ! ,,t9 ( su*          
individual is includ$ on ! return claim+
 ! cr$it4  7g7 ,regulations ,! ,secret>y
 %all issue su* regulations or o!r      
guidance z may be necess>y or           
appropriate to c>ry out ! purposes ( ?is
 section4  4  7b7 ,con=m+ am5dm5ts  7#a7
 ,section #acbd7;b7 ( title #ca is am5d$
 by ins]t+ #cf;,c1 aft] #cf;,b14  7#b7  
,section #ba ( su* ,code is repeal$4    

7#c7 ,section #de;,f7,c77#a77;,a77iv7 ( 
su* ,code1 z add$ by ?is ,act1 is am5d$ 
by /rik+ section #ba7;b77#a77;,a7 &     
ins]t+ section #cf;,c7b77#a77;,a74  7#d7
 ,! table ( sections = subp>t ,a ( "p   
,,iv ( sub*apt] ,a ( *apt] #a ( su*     
,code is am5d$ by /rik+ ! item relat+ to
 section #ba4  7#e7 ,section            
#fbaa7;b77#d77;,a7 ( su* ,code is am5d$ 
by /rik+ #ba by reason ( subsection 7g7 
!re(14  7#f7 ,section #fbac7;g77#b7 (   
su* ,code is am5d$--  7,a7 9 subp>agraph
 7,h71 by /rik+ section #ba & ins]t+    
section #cf;,c1 &  7,b7 9 subp>agraph   
7,l7--  7i7 by /rik+ #ba11 &  7ii7 by   
ins]t+ #cf;,c1 aft] #cb14  7#g7 ,!      
foll[+ sections ( su* ,code are ea*     
am5d$ by /rik+ section #ba7;e7 & ins]t+ 
section #cf;,c7e74 7,a7 ,section        
#bc7;f77#a74  7,b7 ,section #ce7;g77#f74
  7,c7 ,section #abi7;a77#b77;,c71 z    
am5d$ by ?is ,act4  7#h7 ,section #abi (
 su* ,code is fur!r am5d$-- 7,a7 9      
subsection 7b77#b71 by /rik+ section    
#ba7;d77#b7 & ins]t+ section            

#cf;,c7d77#b71 &  7,b7 9 subsection     
7e77#a71 by /rik+ section #ba7;b77#b7 & 
ins]t+ section #cf;,c7b77#b74  7#i7     
,section #bac7;e7 ( su* ,code is am5d$  
by /rik+ section #ba & ins]t+ section   
#cf;,c4  7c7 ,cl]ical am5dm5t ,! table (
 sections = subp>t ,c ( "p ,,iv (       
sub*apt] ,a ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #cf;,b ! foll[+ new item3  ,sec4
 #cf;,c4 ,exp5ses = h\sehold & dep5d5t  
c>e s]vices necess>y = ga9ful employm5t4
  4  7d7 ,effective date ,! am5dm5ts    
made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ! date ( !     
enactm5t ( ?is section4