< Back to H.R. 3101 (113th Congress, 2013–2015)

Text of the Right Start Child Care and Education Act of 2013

This bill was introduced on September 12, 2013, in a previous session of Congress, but was not enacted. The text of the bill below is as of Sep 12, 2013 (Introduced).

I

113th CONGRESS

1st Session

H. R. 3101

IN THE HOUSE OF REPRESENTATIVES

September 12, 2013

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 increase the credit for employers establishing workplace child care facilities, to increase the child care credit to encourage greater use of quality child care services, to provide incentives for students to earn child care-related degrees and to work in child care facilities, and to increase the exclusion for employer-provided dependent care assistance.

1.

Short title

This Act may be cited as the Right Start Child Care and Education Act of 2013 .

2.

Increase in employer-provided child care credit

(a)

Increase in creditable percentage of child care expenditures

Paragraph (1) of section 45F(a) of the Internal Revenue Code of 1986 is amended by striking 25 percent and inserting 35 percent.

(b)

Increase in creditable percentage of resource and referral expenditures

Paragraph (2) of section 45F(a) of such Code is amended by striking 10 percent and inserting 20 percent.

(c)

Increase in maximum credit

Subsection (b) of section 45F of such Code is amended by striking $150,000 and inserting $225,000.

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2013.

3.

Increase in dependent care credit

(a)

Increase in incomes eligible for full credit

Paragraph (2) of section 21(a) of the Internal Revenue Code of 1986 is amended by striking $15,000 and inserting $20,000.

(b)

Increase in percentage of expenses allowable

Paragraph (2) of section 21(a) of such Code is amended—

(1)

by striking 35 percent and inserting 50 percent, and

(2)

by striking 20 percent and inserting 35 percent.

(c)

Increase in dollar limit on amount creditable

Subsection (c) of section 21 of such Code 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.

(d)

Credit To be refundable

(1)

In general

Section 21 of such Code is hereby moved to subpart C of part IV of subchapter A of chapter 1 of such Code (relating to refundable credits) and inserted after section 36B.

(2)

Technical amendments

(A)

Section 21 of such Code, as so moved, is redesignated as section 36C.

(B)

Paragraph (1) of section 36C(a) of such Code (as redesignated by paragraph (2)) is amended by striking this chapter and inserting this subtitle.

(C)

Paragraph (1) of section 23(f) of such Code is amended by striking 21(e) and inserting 36C(e) .

(D)

Paragraph (6) of section 35(g) of such Code is amended by striking 21(e) and inserting 36C(e) .

(E)

Subparagraph (C) of section 129(a)(2) of such Code is amended by striking section 21(e) and inserting section 36C(e) .

(F)

Paragraph (2) of section 129(b) of such Code is amended by striking section 21(d)(2) and inserting section 36C(d)(2) .

(G)

Paragraph (1) of section 129(e) of such Code is amended by striking section 21(b)(2) and inserting section 36C(b)(2) .

(H)

Subsection (e) of section 213 of such Code is amended by striking section 21 and inserting section 36C .

(I)

Subparagraph (H) of section 6213(g)(2) of such Code is amended by striking section 21 and inserting section 36C .

(J)

Subparagraph (L) of section 6213(g)(2) of such Code is amended by striking section 21, and inserting section 36C,.

(K)

Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 36C, after 36B,.

(L)

The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B and inserting the following:

Sec. 36C. Expenses for household and dependent care services necessary for gainful employment.

.

(M)

The table of sections for subpart A of such part IV is amended by striking the item relating to section 21.

(e)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2013.

4.

Three-year credit for individuals holding child care-related degrees who work in licensed child care facilities

(a)

In general

Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section:

25E.

Right start child care and education credit

(a)

Allowance of credit

In the case of an individual who is an eligible child care provider for the taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year the amount of $2,000.

(b)

3-Year credit

(1)

In general

The credit allowable by subsection (a) for any taxable year to an individual shall be allowed for such year only if the individual elects the application of this section for such year.

(2)

Election

An election to have this section apply may not be made by an individual for any taxable year if such an election by such individual is in effect for any 3 prior taxable years.

(c)

Eligible child care provider

For purposes of this section—

(1)

In general

The term eligible child care provider means, for any taxable year, any individual if—

(A)

as of the close of such taxable year, such individual holds a bachelor’s degree in early childhood education, child care, or a related degree and such degree was awarded by an eligible educational institution (as defined in section 25A(f)(2)), and

(B)

during such taxable year, such individual performs at least 1,200 hours of child care services at a facility if—

(i)

the principal use of the facility is to provide child care services,

(ii)

no more than 25 percent of the children receiving child care services at the facility are children (as defined in section 152(f)) of the individual or such individual’s spouse, and

(iii)

the facility meets the requirements of all applicable laws and regulations of the State or local government in which it is located, including the licensing of the facility as a child care facility.

Subparagraph (B)(i) shall not apply to a facility which is the principal residence (within the meaning of section 121) of the operator of the facility.
(2)

Child care services

The term child care services means child care and early childhood education.

.

(b)

Clerical amendment

The table of sections for such subpart A is amended by inserting after the item relating to section 25D the following new item:

Sec. 25E. Right start child care and education credit..

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2013.

5.

Increase in exclusion for employer-provided dependent care assistance

(a)

In general

Subparagraph (A) of section 129(a)(2) of the Internal Revenue Code of 1986 (relating to dependent care assistance programs) is amended by striking $5,000 ($2,500 and inserting $7,500 ($3,750.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2013.