H. R. 5075
IN THE HOUSE OF REPRESENTATIVES
April 20, 2010
Mr. Adler of New Jersey introduced the following bill; which was referred to the Committee on Ways and Means
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.
This Act may be cited as the
Middle Class Tax Relief Act.
Modification of dependent care credit
Increase in dollar limitation
Subsection (c) of section 21 of the Internal Revenue Code of 1986 is amended—
$3,000 in paragraph (1) and inserting
$6,000 in paragraph (2) and inserting
Increased phaseout threshold
(2) of section 21(a) of the Internal Revenue Code of 1986 (defining applicable
percentage) is amended by striking
$15,000 and inserting
Modification of credit for expenses for household and dependent care services necessary for gainful employment
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:
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.
of such Code is amended by inserting
(other than a dependent described
in subparagraph (D)) after
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.
The amendments made by this section shall apply to taxable years beginning after December 31, 2009.
Additional standard deduction for state and local real property taxes
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.
Increase in deduction allowable
Paragraph (7) of section 63(c) of such Code
is amended by striking
the lesser of— and all that follows
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.
The amendment made by this section shall apply to taxable years beginning after December 31, 2009.