Section 1 Short title
This Act may be cited as the “Family Care Savings Act”.
Family Care Savings Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the amount excluded from gross income for employer-provided dependent care assistance.
Sec. 2 Increase in exclusion from gross income for employer-provided dependent care assistance
In general— Section 129(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking “$5,000 ($2,500” and inserting “$10,000 (50 percent of such amount”.
Inflation adjustment— Section 129(a)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following:
“(D) Inflation adjustment—In the case of any taxable year beginning in a calendar year after 2017, the $10,000 amount contained 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 amendments made by this section shall apply to taxable years beginning after December 31, 2016.