,,ii  #aaith ,,congress  #ast ,session  
,s4 #hdg  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #d1          
#bjbe,mrs4 ,britt 7for herself1 ,mr4    
,kaine1 ,ms4 ,ernst1 ,mrs4 ,shaheen1    
,mr4 ,curtis1 ,mr4 ,king1 ,ms4 ,collins1
 ,mrs4 ,gillibrand1 and ,mrs4 ,capito7  
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,finance  ,a ,,bill  ,to  
amend the ,internal ,revenue ,code of   
#aihf to expand the employer-provided   
child care credit and the dependent care
 assistance exclusion4  #a4 ,short title
 ,this ,act may be cited as the ,child  
,care ,availability and ,affordability  
,act4  #b4 ,expansion of                
employer-provided child care credit  7a7
 ,increase of amount of qualified child 
care expenditures taken into account    
,section #de;,f7a77#a7 of the ,internal 
,revenue ,code of #aihf is amended by   
striking #be percent and inserting #ej  
percent4  7b7 ,increase of maximum      
credit amount ,section #de;,f7b7 of the 

,internal ,revenue ,code of #aihf is    
amended by striking #aej1jjj and        
inserting #ejj1jjj4  7c7 ,treatment of  
jointly owned or operated childcare     
facility ,section #de;,f7c77#a7 of the  
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new subparagraph3  7,c7       
,jointly owned or operated childcare    
facility ,for purposes of subparagraph  
7,a77i77,i71 a facility shall not fail  
to be treated as a qualified childcare  
facility of the taxpayer merely because 
such facility is jointly owned or       
operated by the taxpayer and other      
persons4  4  7d7 ,special rule for small
 businesses ,section #de;,f7e7 of the   
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new paragraph3  7#d7 ,small   
businesses  7,a7 ,in general ,in the    
case of a taxpayer described in         
subparagraph 7,b7-- 7i7 subsection      
7a77#a7 shall be applied by substituting
 #fj percent for #ej percent1 and  7ii7 

subsection 7b7 shall be applied by      
substituting #fjj1jjj for #ejj1jjj4     
7,b7 ,taxpayer described ,a taxpayer    
described in this subparagraph is a     
taxpayer that meets the gross receipts  
test of section #ddh7;c71 determined--  
7i7 by substituting #e-taxable-year for 
#c-taxable-year in paragraph 7#a7       
thereof1 and  7ii7 by substituting      
#e-year for #c-year each place such term
 appears in paragraph 7#c77;,a7 thereof4
  4  7e7 ,effective date ,the amendments
 made by this section shall apply to    
amounts paid or incurred after the date 
of the enactment of this section4  #c4  
,increase in amount excludable for      
dependent care assistance programs  7a7 
,in general ,section #abi7;a77#b77;,a7  
of the ,internal ,revenue ,code of #aihf
 is amended by striking #e1jjj 7#b1ejj  
and inserting #g1ejj 7#c1gej4  7b7      
,effective date ,the amendment made by  
this section shall apply to amounts paid
 or incurred after the date of the      
enactment of this section4  #d4         

,household and dependent care credit    
increased and made refundable  7a7 ,in  
general ,subpart ,c of part ,,iv of     
subchapter ,a of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amending by inserting after section     
#cf;,b the following new section3       
#cf;,c4 ,expenses for household and     
dependent care services necessary for   
gainful employment  7a7 ,allowance of   
credit  7#a7 ,in general ,in the case of
 an individual for which there are #a or
 more qualifying individuals with       
respect to such individual1 there shall 
be allowed as a credit against the tax  
imposed by this chapter for the taxable 
year an amount equal to the applicable  
percentage of the employment-related    
expenses paid by such individual during 
the taxable year4  7#b7 ,applicable     
percentage defined ,for purposes of     
paragraph 7#a71 the term applicable     
percentage means #ej percent-- 7,a7     
reduced 7but not below #ce percent7 by  
#a percentage point for each #b1jjj 7or 

fraction thereof7 by which the          
taxpayer's adjusted gross income for the
 taxable year exceeds #ae1jjj1 and  7,b7
 further reduced 7but not below zero7 by
 #a percentage point for each #b1jjj 7or
 fraction thereof7 by which the         
taxpayer's adjusted gross income for the
 taxable year exceeds #aej1jjj4  7b7    
,definitions of qualifying individual   
and employment-,related expenses ,for   
purposes of this section-- 7#a7         
,qualifying individual ,the term        
qualifying individual means-- 7,a7 a    
dependent of the taxpayer 7as defined in
 section #aeb7;a77#a77 who has not      
attained age #ac1  7,b7 a dependent of  
the taxpayer 7as defined in section     
#aeb1 determined without regard to      
subsections 7b77#a71 7b77#b71 and       
7d77#a77;,b77 who is physically or      
mentally incapable of caring for himself
 or herself and who has the same        
principal place of abode as the taxpayer
 for more than one-half of such taxable 
year1 or  7,c7 the spouse of the        

taxpayer1 if the spouse is physically or
 mentally incapable of caring for       
himself or herself and who has the same 
principal place of abode as the taxpayer
 for more than one-half of such taxable 
year4  7#b7 ,employment-related expenses
  7,a7 ,in general ,the term            
employment-related expenses means       
amounts paid for the following expenses1
 but only if such expenses are incurred 
to enable the taxpayer to be gainfully  
employed for any period for which there 
are #a or more qualifying individuals   
with respect to the taxpayer3 7i7       
,expenses for household services4  7ii7 
,expenses for the care of a qualifying  
individual4  ,such term shall not       
include any amount paid for services    
outside the taxpayer's household at a   
camp where the qualifying individual    
stays overnight4  7,b7 ,exception       
,employment-related expenses described  
in subparagraph 7,a7 which are incurred 
for services outside the taxpayer's     
household shall be taken into account   

only if incurred for the care of-- 7i7 a
 qualifying individual described in     
paragraph 7#a77;,a71 or  7ii7 a         
qualifying individual 7not described in 
paragraph 7#a77;,a77 who regularly      
spends at least #h hours each day in the
 taxpayer's household4  7,c7 ,dependent 
care centers ,employment-related        
expenses described in subparagraph 7,a7 
which are incurred for services provided
 outside the taxpayer's household by a  
dependent care center 7as defined in    
subparagraph 7,d77 shall be taken into  
account only if-- 7i7 such center       
complies with all applicable laws and   
regulations of a ,state or unit of local
 government1 and  7ii7 the requirements 
of subparagraph 7,b7 are met4  7,d7     
,dependent care center defined ,for     
purposes of this paragraph1 the term    
dependent care center means any facility
 which-- 7i7 provides care for more than
 #f individuals 7other than individuals 
who reside at the facility71 and  7ii7  
receives a fee1 payment1 or grant for   

providing services for any of the       
individuals 7regardless of whether such 
facility is operated for profit74  7c7  
,dollar limit on amount creditable ,the 
amount of the employment-related        
expenses incurred during any taxable    
year which may be taken into account    
under subsection 7a7 shall not exceed-- 
7#a7 #e1jjj if there is #a qualifying   
individual with respect to the taxpayer 
for such taxable year1 or  7#b7 #h1jjj  
if there are #b or more qualifying      
individuals with respect to the taxpayer
 for such taxable year4  7d7 ,earned    
income limitation  7#a7 ,in general     
,except as otherwise provided in this   
subsection1 the amount of the           
employment-related expenses incurred    
during any taxable year which may be    
taken into account under subsection 7a7 
shall not exceed-- 7,a7 in the case of  
an individual who is not married at the 
close of such year1 such individual's   
earned income for such year1 or  7,b7 in
 the case of an individual who is       

married at the close of such year1 the  
lesser of such individual's earned      
income or the earned income of his      
spouse for such year4  7#b7 ,special    
rule for spouse who is a student or     
incapable of caring for self ,in the    
case of a spouse who is a student or a  
qualifying individual described in      
subsection 7b77#a77;,c71 for purposes of
 paragraph 7#a71 such spouse shall be   
deemed for each month during which such 
spouse is a full-time student at an     
educational institution1 or is such a   
qualifying individual1 to be gainfully  
employed and to have earned income of   
not less than-- 7,a7 #bej if subsection 
7c77#a7 applies for the taxable year1 or
  7,b7 #ejj if subsection 7c77#b7       
applies for the taxable year4  7e7      
,special rules ,for purposes of this    
section-- 7#a7 ,place of abode ,an      
individual shall not be treated as      
having the same principal place of abode
 of the taxpayer if at any time during  
the taxable year of the taxpayer the    

relationship between the individual and 
the taxpayer is in violation of local   
law4  7#b7 ,married couples must file   
joint return ,if the taxpayer is married
 at the close of the taxable year1 the  
credit shall be allowed under subsection
 7a7 only if the taxpayer and the       
taxpayer's spouse file a joint return   
for the taxable year4  7#c7 ,marital    
status ,an individual legally separated 
from the individual's spouse under a    
decree of divorce or of separate        
maintenance shall not be considered as  
married4  7#d7 ,certain married         
individuals living apart ,if-- 7,a7 an  
individual who is married and who files 
a separate return-- 7i7 maintains as the
 individual's home a household which    
constitutes for more than #a_/b of the  
taxable year the principal place of     
abode of a qualifying individual1 and   
7ii7 furnishes over half of the cost of 
maintaining such household during the   
taxable year1 and  7,b7 during the last 
#f months of such taxable year such     

individual's spouse is not a member of  
such household1  such individual shall  
not be considered as married4  7#e7     
,special dependency test in case of     
divorced parents1 etc ,if-- 7,a7 section
 #aeb7;e7 applies to any child with     
respect to any calendar year1 and  7,b7 
such child is under the age of #ac or is
 physically or mentally incapable of    
caring for himself or herself1  in the  
case of any taxable year beginning in   
such calendar year1 such child shall be 
treated as a qualifying individual      
described in subparagraph 7,a7 or 7,b7  
of subsection 7b77#a7 7whichever is     
appropriate7 with respect to the        
custodial parent 7as defined in section 
#aeb7;e77#d77;,a771 and shall not be    
treated as a qualifying individual with 
respect to the noncustodial parent4     
7#f7 ,payments to related individuals   
,no credit shall be allowed under       
subsection 7a7 for any amount paid by   
the taxpayer to an individual-- 7,a7    
with respect to whom1 for the taxable   

year1 a deduction under section #aea7;c7
 7relating to deduction for personal    
exemptions for dependents7 is allowable 
either to the taxpayer or the taxpayer's
 spouse1 or  7,b7 who is a child of the 
taxpayer 7within the meaning of section 
#aeb7;f77#a77 who has not attained the  
age of #ai at the close of the taxable  
year4  ,for purposes of this paragraph1 
the term taxable year means the taxable 
year of the taxpayer in which the       
service is performed4  7#g7 ,student    
,the term student means an individual   
who during each of #e calendar months   
during the taxable year is a full-time  
student at an educational organization4 
7#h7 ,educational organization ,the term
 educational organization means an      
educational organization described in   
section #agj7;b77#a77;,a77ii74  7#i7    
,identifying information required with  
respect to service provider ,no credit  
shall be allowed under subsection 7a7   
for any amount paid to any person       
unless-- 7,a7 the name1 address1 and    

taxpayer identification number of such  
person are included on the return       
claiming the credit1 or  7,b7 if such   
person is an organization described in  
section #eja7;c77#c7 and exempt from tax
 under section #eja7;a71 the name and   
address of such person are included on  
the return claiming the credit4  ,in the
 case of a failure to provide the       
information required under the preceding
 sentence1 the preceding sentence shall 
not apply if it is shown that the       
taxpayer exercised due diligence in     
attempting to provide the information so
 required4  7#aj7 ,identifying          
information required with respect to    
qualifying individuals ,no credit shall 
be allowed under this section with      
respect to any qualifying individual    
unless the ,,tin of such individual is  
included on the return claiming the     
credit4  7f7 ,regulations ,the          
,secretary shall issue such regulations 
or other guidance as may be necessary or
 appropriate to carry out the purposes  

of this section4  4  7b7 ,conforming    
amendments  7#a7 ,section #acbd7;b7 of  
title #ca is amended by inserting       
#cf;,c1 after #cf;,b14  7#b7 ,section   
#ba of the ,internal ,revenue ,code of  
#aihf is repealed4  7#c7 ,the table of  
sections for subpart ,a of part ,,iv of 
subchapter ,a of chapter #a of such     
,code is amended by striking the item   
relating to section #ba4  7#d7 ,section 
#fbaa7;b77#d77;,a7 of such ,code is     
amended by striking #ba by reason of    
subsection 7g7 thereof14  7#e7 ,section 
#fbac7;g77#b7 of such ,code is amended--
 7,a7 in subparagraph 7,h71 by striking 
section #ba and inserting section       
#cf;,c1 and  7,b7 in subparagraph 7,l7--
 7i7 by striking #ba11 and  7ii7 by     
inserting #cf;,c1 after #cb14  7#f7 ,the
 following sections of such ,code are   
each amended by striking section #ba7;e7
 and inserting section #cf;,c7e74 7,a7  
,section #bc7;f77#a74  7,b7 ,section    
#ce7;g77#f74  7,c7 ,section             
#abi7;a77#b77;,c74  7#g7 ,section #abi  

of such ,code is further amended-- 7,a7 
in subsection 7b77#b71 by striking      
section #ba7;d77#b7 and inserting       
section #cf;,c7d77#b71 and  7,b7 in     
subsection 7e77#a71 by striking section 
#ba7;b77#b7 and inserting section       
#cf;,c7b77#b74  7#h7 ,section #bac7;e7  
of such ,code is amended by striking    
section #ba and inserting section       
#cf;,c4  7c7 ,clerical amendment ,the   
table of sections for subpart ,c of part
 ,,iv of subchapter ,a of chapter #a of 
such ,code is amended by inserting after
 the item relating to section #cf;,b the
 following new item3  ,sec4 #cf;,c4     
,expenses for household and dependent   
care services necessary for gainful     
employment4  4  7d7 ,effective date ,the
 amendments made by this section shall  
apply to taxable years beginning after  
the date of the enactment of this       
section4