II
114th CONGRESS
1st Session
S. 446
IN THE SENATE OF THE UNITED STATES
February 11, 2015
Mrs. Boxer (for herself, Mrs. Shaheen, Mr. Schatz, and Mrs. Gillibrand) introduced the following bill; which was read twice and referred to the Committee on Finance
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.
Short title
This Act may be cited as the Right Start Child Care and Education Act of 2015
.
Increase in employer-provided child care credit
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
.
Increase in creditable percentage of resource and referral expenditures
Paragraph (2) of section 45F(a) of the Internal Revenue Code of 1986 is amended by striking 10 percent
and inserting 20 percent
.
Increase in maximum credit
Subsection (b) of section 45F of the Internal Revenue Code of 1986 is amended by striking $150,000
and inserting $225,000
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2014.
Increase in dependent care credit
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 $30,000
.
Increase in percentage of expenses allowable
Paragraph (2) of section 21(a) of the Internal Revenue Code of 1986 is amended—
by striking 35 percent
and inserting 50 percent
, and
by striking 20 percent
and inserting 35 percent
.
Increase in dollar limit on amount creditable
Subsection (c) of section 21 of the Internal Revenue Code of 1986 is amended—
by striking $3,000
in paragraph (1) and inserting $6,000
, and
by striking $6,000
in paragraph (2) and inserting $12,000
.
Credit To be refundable
In general
The Internal Revenue Code of 1986 is amended—
by redesignating section 21 as section 36D, and
by moving section 36D, as so redesignated, from subpart A of part IV of subchapter A of chapter 1 to the location immediately before section 37 in subpart C of part IV of subchapter A of chapter 1.
Technical amendments
Paragraph (1) of section 23(f) of such Code is amended by striking 21(e)
and inserting 36D(e)
.
Paragraph (6) of section 35(g) of such Code is amended by striking 21(e)
and inserting 36D(e)
.
Paragraph (1) of section 36D(a) of such Code (as redesignated by paragraph (1)) is amended by striking this chapter
and inserting this subtitle
.
Subparagraph (C) of section 129(a)(2) of such Code is amended by striking section 21(e)
and inserting section 36D(e)
.
Paragraph (2) of section 129(b) of such Code is amended by striking section 21(d)(2)
and inserting section 36D(d)(2)
.
Paragraph (1) of section 129(e) of such Code is amended by striking section 21(b)(2)
and inserting section 36D(b)(2)
.
Subsection (e) of section 213 of such Code is amended by striking section 21
and inserting section 36D
.
Subparagraph (H) of section 6213(g)(2) of such Code is amended by striking section 21
and inserting section 36D
.
Subparagraph (L) of section 6213(g)(2) of such Code is amended by striking section 21, 24, 32,
and inserting section 24, 32, 36D,
.
Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 36D,
after 36C,
.
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 36C the following:
Sec. 36D. Expenses for household and dependent care services necessary for gainful employment.
.
The table of sections for subpart A of such part IV is amended by striking the item relating to section 21.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2014.
3-year credit for individuals holding child care-related degrees who work in licensed child care facilities
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:
Right start child care and education credit
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.
3-Year credit
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.
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.
Eligible child care provider
For purposes of this section—
In general
The term eligible child care provider means, for any taxable year, any individual if—
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
during such taxable year, such individual performs at least 1,200 hours of child care services at a facility if—
the principal use of the facility is to provide child care services,
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
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.
Child care services
The term child care services means child care and early childhood education.
.
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.
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2014.
Increase in exclusion for employer-provided dependent care assistance
In general
Subparagraph (A) of section 129(a)(2) of the Internal Revenue Code of 1986 is amended by striking $5,000 ($2,500
and inserting $7,500 ($3,750
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2014.
