A bill to amend the Internal Revenue Code of 1954 to increase the amount of the expenses for household and dependent care services necessary for gainful employment which may be taken into account for computing a tax credit, and to include certain organizations providing dependent care within the definition of tax-exempt organization under such Code.

Amends the Internal Revenue Code to increase the income tax credit for child care expenses from a maximum of 30 percent to a maximum of 50 percent of such expenses. Reduces such percentage by one percent for each full $1,000 by which the taxpayer's adjusted gross income exceeds $10,000.

Grants tax-exempt status to organizations which provide nonresidential dependent care services to the general public for purposes of enabling individuals to maintain employment.