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.

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. Modifies the formula for reducing the percentage of child care expenses eligible for the tax credit where the taxpayer's adjusted gross income exceeds $10,000.

Increases the amount of the employment-related expenses incurred during any taxable year which may be taken into account in computing the amount of the tax credit.