Section 1 Short title
This Act may be cited as the “Middle Class Dependent Care Fairness Act of 2016”.
Middle Class Dependent Care Fairness Act of 2016
A BILL
To amend the Internal Revenue Code of 1986 to improve the dependent care credit by repealing the phasedown of the credit percentage.
Sec. 2 Dependent care credit improvements
Repeal of phasedown of credit percentage— Subsection (a) of section 21 of the Internal Revenue Code of 1986 is amended to read as follows:
“(a) Allowance of credit—In the case of an individual for which there are 1 or more qualifying individuals (as defined in subsection (b)(1)) with respect to such individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 35 percent of the employment-related expenses (as defined in subsection (b)(2)) paid by such individual during the taxable year.”
Effective date— The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.