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H.R. 1720 (114th): Child and Dependent Care FSA Enhancement Act

The text of the bill below is as of Mar 26, 2015 (Introduced). The bill was not enacted into law.



1st Session

H. R. 1720


March 26, 2015

(for herself, Mrs. Ellmers of North Carolina, Mrs. Brooks of Indiana, Mr. Hanna, Mr. Gibson, Mr. Murphy of Florida, Mrs. Kirkpatrick, and Mrs. Bustos) introduced the following bill; which was referred to the Committee on Ways and Means


To amend the Internal Revenue Code of 1986 to increase the exclusion for employer-provided dependent care assistance.


Short title

This Act may be cited as the Child and Dependent Care FSA Enhancement Act.


Increase in exclusion for employer-provided dependent care assistance


In general

Section 129(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking $5,000 ($2,500 and inserting $7,500 (half such dollar amount.


Inflation adjustment

Section 129(a)(2) of such Code is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph:


Inflation adjustment

In the case of any taxable year beginning in a calendar year after 2016, the $7,500 amount in subparagraph (A) shall be increased by an amount equal to—


such dollar amount, multiplied by


the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2015 for calendar year 1992 in subparagraph (B) thereof.

Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100.



Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2015.