DEPENDENT CARE CREDIT.

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”.115 STAT. 50 (c) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2002.