< Back to H.R. 5075 (111th Congress, 2009–2010)

Text of the Middle Class Tax Relief Act

This bill was introduced on April 20, 2010, in a previous session of Congress, but was not enacted. The text of the bill below is as of Apr 20, 2010 (Introduced).

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Source: GPO

I

111th CONGRESS

2d Session

H. R. 5075

IN THE HOUSE OF REPRESENTATIVES

April 20, 2010

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 modify the dependent care tax credit and to extend and increase the additional standard deduction for State and local real property taxes.

1.

Short title

This Act may be cited as the Middle Class Tax Relief Act.

2.

Modification of dependent care credit

(a)

Increase in dollar limitation

Subsection (c) of section 21 of the Internal Revenue Code of 1986 is amended—

(1)

by striking $3,000 in paragraph (1) and inserting $6,000, and

(2)

by striking $6,000 in paragraph (2) and inserting $12,000.

(b)

Increased phaseout threshold

Paragraph (2) of section 21(a) of the Internal Revenue Code of 1986 (defining applicable percentage) is amended by striking $15,000 and inserting $60,000.

(c)

Modification of credit for expenses for household and dependent care services necessary for gainful employment

(1)

In general

Paragraph (1) of section 21(b) of the Internal Revenue Code of 1986 (relating to qualifying individual) is amended by striking or at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting , or, and by adding at the end the following new subparagraph:

(D)

a dependent of the taxpayer (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)) who is the father or mother of the taxpayer (or an ancestor of such father or mother) and who is physically or mentally incapable of caring for himself or herself.

.

(2)

Conforming amendment

Section 21(b)(1)(B) of such Code is amended by inserting (other than a dependent described in subparagraph (D)) after and (d)(1)(B)).

(d)

Repeal of EGTRRA sunset for increased dollar limit

Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to section 204(a) of such Act.

(e)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2009.

3.

Additional standard deduction for state and local real property taxes

(a)

One-Year extension

Subparagraph (C) of section 63(c)(1) of the Internal Revenue Code of 1986 is amended by striking or 2009 and inserting , 2009, or 2010.

(b)

Increase in deduction allowable

Paragraph (7) of section 63(c) of such Code is amended by striking the lesser of— and all that follows through Any taxes and inserting the amount allowable as a deduction under this chapter for State and local taxes described in section 164(a)(1). Any taxes.

(c)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2009.