S 435

112th CONGRESS
1st Session

S. 435

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

IN THE SENATE OF THE UNITED STATES

March 2, 2011

Mr. BURR (for himself, Mr. JOHANNS, 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 exclusion for employer-provided dependent care assistance.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 2. 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 (half such dollar amount'.

    (b) Inflation Adjustment- Paragraph (2) of section 129(a) of such Code is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph:

        `(C) INFLATION ADJUSTMENT- In the case of any taxable year beginning in a calendar year after 2011, the $7,500 amount in subparagraph (A) shall be increased by an amount equal to--

          `(i) such dollar amount, multiplied by

          `(ii) 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 2010' for `calendar year 1992' in subparagraph (B) thereof.

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

    (c) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2010.

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