Sec. 2. Modification of child and dependent care tax credit
341 words·~2 min read·
/bill/116/hr/7562/ih/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 21(b)(2)(A) of the Internal Revenue Code of 1986 is amended by striking and at the end of clause (i), by striking the period at the end of clause
(ii)and inserting , and , and by inserting after clause
(ii)the following: expenses for youth physical activities (within the meaning of section 223(d)(5)). . Section 21(b)(2)(A) of such Code (as amended by subsection (a)) is amended by striking Such term and inserting Except as provided by clause (iii), such term . Section 221(c) of such Code is amended to read as follows: The amount of the employment-related expenses incurred during any taxable year which may be taken into account under subsection
(a)shall not exceed— if there is 1 qualifying individual with respect to the taxpayer for such taxable year, the sum of— $3,000 of so much of employment-related expenses as are described in clauses
(i)and
(ii)of subsection (b)(2)(A), and $6,000 of so much of employment-related expenses as are described in clause
(iii)of subsection (b)(2)(A), or if there are 2 or more qualifying individuals with respect to the taxpayer for such taxable year, the sum of— $6,000 of so much of employment-related expenses as are described in clauses
(i)and
(ii)of subsection (b)(2)(A), and $12,000 of so much of employment-related expenses as are described in clause
(iii)of subsection (b)(2)(A). The amounts determined under subparagraphs
(A)and
(B)of paragraph
(1)or
(2)(whichever is applicable) shall each be reduced by the aggregate amount for the same categories of expenses excludable from gross income under section 129 for the taxable year. . Section 21(e) of such Code is amended by adding at the end the following: In the case of a taxable year beginning in calendar year 2020, the credit allowed under subsection
(a)(determined without regard to this paragraph and section 26(a)) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). . The amendments made by this section shall apply to taxable years beginning after December 31, 2019.