MODIFICATIONS OF DEPENDENT CARE CREDIT.

SEC. 203. MODIFICATIONS OF DEPENDENT CARE CREDIT.(a) In General.—Section 21(a)(1) is amended by striking “In the case of an individual who maintains a household which includes as a member one or more qualifying individuals (as defined in subsection (b)(1))” and inserting “In the case of an individual for which there are 1 or more qualifying individuals (as defined in subsection (b)(1)) with respect to such individual”. (b) Qualifying Individual.—Paragraph (1) of section 21(b) is amended to read as follows:“(1) Qualifying individual.—The term ‘qualifying individual’ means—“(A) a dependent of the taxpayer (as defined in section 152(a)(1)) who has not attained age 13,“(B) a dependent of the taxpayer who is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as the taxpayer for more than one-half of such taxable year, or“(C) the spouse of the taxpayer, if the spouse is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as the taxpayer for more than one-half of such taxable year.”.118 STAT. 1176(c) Conforming Amendment.—Paragraph (1) of section 21(e) is amended to read as follows:“(1) Place of abode.—An individual shall not be treated as having the same principal place of abode of the taxpayer if at any time during the taxable year of the taxpayer the relationship between the individual and the taxpayer is in violation of local law.”.