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House Bill 3397
116th Congress(2019-2020)
Child and Dependent Care Modernization Act of 2019
Introduced
Introduced
Introduced in House on Jun 20, 2019
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Introduced in House 
Jun 20, 2019
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Introduced in House(Jun 20, 2019)
Jun 20, 2019
Not Scanned for Linkage
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Multiple bills can contain the same text. This could be an identical bill in the opposite chamber or a smaller bill with a section embedded in a larger bill.
Bill Sponsor regularly scans bill texts to find sections that are contained in other bill texts. When a matching section is found, the bills containing that section can be viewed by clicking "View Bills" within the bill text section.
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H. R. 3397 (Introduced-in-House)


116th CONGRESS
1st Session
H. R. 3397


To amend the Internal Revenue Code to increase the exclusion for employer-provided dependent care assistance and to allow individuals to carry forward dependent care flexible spending arrangement account balances.

IN THE HOUSE OF REPRESENTATIVES

June 20, 2019

Mrs. Wagner (for herself, Mr. King of New York, Mr. Stivers, and Mr. Rodney Davis of Illinois) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code to increase the exclusion for employer-provided dependent care assistance and to allow individuals to carry forward dependent care flexible spending arrangement account balances.

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 Modernization Act of 2019”.

SEC. 2. Increase in exclusion for employer-provided dependent care assistance.

(a) In general.—Section 129(a)(2) of the Internal Revenue Code of 1986 is amended—

(1) by striking “shall not exceed” in subparagraph (A) and all that follows and inserting the following: “shall not exceed—

“(i) $8,000 (half such dollar amount in the case of a separate return by a married individual) if there is 1 qualifying individual with respect to the taxpayer during such taxable year, or

“(ii) $16,000 (half such dollar amount in the case of such a separate return) if there are 2 or more qualifying individuals with respect to the taxpayer during such taxable year.”, and

(2) by adding at the end the following new subparagraph:

“(D) QUALIFYING INDIVIDUAL.—For purposes of this paragraph, the term ‘qualifying individual’ has the meaning given to such term under section 21(b)(1).”.

(b) Inflation adjustment.—Section 129(a)(2) 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 2020, the dollar amounts in subparagraph (A) shall each 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 2019’ for ‘calendar year 2016’ in subparagraph (A)(ii) 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, 2019.

SEC. 3. Carryforward for dependent care flexible spending arrangement account balance.

(a) In general.—Section 125 of the Internal Revenue Code of 1986 is amended by redesignating subsections (k) and (l) as subsections (l) and (m), respectively, and by inserting after subsection (j) the following new subsection:

“(k) Carryforward.—For purposes of this title, a plan or other arrangement shall not fail to be treated as a cafeteria plan or flexible spending arrangement for a plan year merely because such arrangement provides that an amount not exceeding the amount with respect to such individual under section 129(a)(2) in effect for the succeeding plan year may be carried forward to the succeeding plan year.”.

(b) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2019.