Page:United States Statutes at Large Volume 115 Part 1.djvu/71

 PUBLIC LAW 107-16—JUNE 7, 2001 115 STAT. 49 (1) IN GENERAL. —Subsection (b) of section 23 is amended 26 USC 23. by adding at the end the following new paragraph: "(4) LIMITATION BASED ON AMOUNT OF TAX.— The credit allowed under subsection (a) for any taxable year shall not exceed the excess of— "(A) the sum of the regular tax liability (as defined, in section 26(b)) plus the tax imposed by section 55, over "(B) the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year. ". (2) CONFORMING AMENDMENTS. — (A) Section 23(c), as amended by section 201(b), is amended— (i) by striking "section 26(a)" and inserting "subsection (b)(4)", and (ii) by striking "reduced by the sum of the credits allowable under this subpart (other than this section and sections 24 and 1400C)". (B) Section 24(b)(3)(B), as added by section 201(b), is amended by striking "this section" and inserting "this section and section 23". (C) Sections 26(a)(1), 904(h), and 1400C(d), as amended by section 201(b), are each amended by striking "section 24" and inserting "sections 23 and 24". (g) EFFECTIVE DATE. — Applicability. (1) IN GENERAL.— Except as provided in paragraph (2), the 26 USC 23note. amendments made by this section shall apply to taxable years beginning after December 31, 2001. (2) SUBSECTION (a).—The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2002. SEC. 203. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FED- 26 USC 24 note. ERAL PROGRAMS AND FEDERALLY ASSISTED PRO- GRAMS. Any payment considered to have been made to any individual by reason of section 24 of the Internal Revenue Code of 1986, as amended by section 201, shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following month, for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. SEC. 204. DEPENDENT CARE CREDIT. (a) INCREASE IN DOLLAR LIMIT. — Subsection (c) of section 21 (relating to expenses for household and dependent care services necessary for gainful employment) is amended— , (1) by striking "$2,400" in paragraph (1) and inserting "$3,000", and (2) by striking "$4,800" in paragraph (2) and inserting " $6,000". (b) INCREASE IN APPLICABLE PERCENTAGE.— Section 21(a)(2) (defining applicable percentage) is amended— (1) by striking "30 percent" and inserting "35 percent", and (2) by striking "$10,000" and inserting "$15,000".

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