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I
116TH CONGRESS
1ST SESSION H. R. 3903
To amend the Internal Revenue Code of 1986 to increase the dollar limitation
on the exclusion for employer-provided dependent care assistance.
IN THE HOUSE OF REPRESENTATIVES
JULY 23, 2019
Ms. DELAURO introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to increase
the dollar limitation on the exclusion for employer-pro-
vided dependent care assistance.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Child Care Flex Spend-
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ing Act of 2019’’.
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SEC. 2. INCREASE IN DOLLAR LIMITATION ON EXCLUSION
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FOR
EMPLOYER-PROVIDED
DEPENDENT
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CARE ASSISTANCE.
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(a) IN GENERAL.—Subparagraph (A) of section
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129(a)(2) of the Internal Revenue Code of 1986 is amend-
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•HR 3903 IH
ed by striking ‘‘shall not exceed’’ and all that follows and
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inserting the following: ‘‘shall not exceed the greater of—
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‘‘(i) $5,000, or
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‘‘(ii) $10,000, reduced (but not below
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zero) by 5 cents for each dollar (or fraction
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thereof) by which the employee’s earned in-
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come for the taxable year exceeds $50,000.
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In the case of a separate return by a married
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individual, the amount determined under the
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preceding sentence shall be reduced by one-
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half.’’.
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(b) INFLATION ADJUSTMENT.—Paragraph (2) of sec-
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tion 129(a) of the Internal Revenue Code of 1986 is
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amended by adding at the end the following new subpara-
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graph:
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‘‘(D) INFLATION
ADJUSTMENT.—In the
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case of any taxable year beginning in a calendar
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year after 2020, the $5,000 and $10,000
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amounts contained in subparagraph (A) shall
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each be increased by an amount equal to—
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‘‘(i) such dollar amount, multiplied by
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‘‘(ii) the cost-of-living adjustment de-
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termined under section 1(f)(3) for the cal-
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endar year in which the taxable year be-
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gins, determined by substituting ‘calendar
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•HR 3903 IH
year 2019’ for ‘calendar year 2016’ in sub-
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paragraph (A)(ii) thereof.
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Any increase determined under the preceding
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sentence shall be rounded to the nearest mul-
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tiple of $50.’’.
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(c) EMPLOYER SAFE HARBOR FOR REPORTING.—
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The Secretary of the Treasury (or the Secretary’s dele-
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gate) shall promulgate regulations or other guidance to
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assist an employer in determining, for purposes of section
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3401(a)(18) of the Internal Revenue Code of 1986, the
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amount (if any) in excess of $5,000 which it is reasonable
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to believe an employee will be able to exclude under section
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129 of such Code.
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(d) EFFECTIVE DATE.—The amendments made by
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this section shall apply to taxable years beginning after
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December 31, 2019.
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Æ
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