H.R. 413

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to index dependent care assistance programs to inflation.

IN THE HOUSE OF REPRESENTATIVES · January 15, 2025 · Sponsor: Mrs. Bice · Committee: Committee on Ways and Means

Table of contents

• H.R. 413
  • SEC. 1. Short title
  • SEC. 2. Increased maximum contribution to dependent care assistance programs

SEC. 1. Short title

• This Act may be cited as the or the .

SEC. 2. Increased maximum contribution to dependent care assistance programs

• (a) In general
  • of the Internal Revenue Code of 1986 is amended by striking $5,000 ( ,500and inserting inserting0,000 ($5,000. Section 129(a)(2)(A)
• (b) Cost-of-Living adjustment
  • Section 129 of such Code is amended by adding at the end the following new subsection:
    • (f) Inflation adjustment
      • (1) In general
        • Each dollar amount in this section shall be increased by an amount equal to—
          • such dollar amount, multiplied by
          • the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting for in subparagraph (A)(ii) thereof. calendar year 2023 calendar year 2016
      • (2) Rounding
        • If any increase under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.
• (c) Removing deadwood
  • Section 129(a)(2) of such Code is amended by striking subparagraph (D).
• (d) Effective date
  • The amendments made by this section shall apply to calendar years beginning after December 31, 2024.