Section 1 Short title
This Act may be cited as the “Child and Dependent Care FSA Enhancement Act”.
Child and Dependent Care FSA Enhancement Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the exclusion for employer-provided dependent care assistance.
Sec. 2 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 (relating to dependent care assistance programs) is amended by striking “$5,000 ($2,500” and inserting “$7,500 (half such dollar amount”.
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 2016, 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 2015” for “calendar year 1992” in subparagraph (B) thereof.”
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2015.