1. Short title This Act may be cited as the Working Families Relief Act . 2. Expansion of exclusion for dependent care assistance programs (a) Expansion (1) In general Subparagraph (A) of section 129(a)(2) of the Internal Revenue Code of 1986 is amended by striking shall not exceed $5,000 ($2,500 in the case of a separate return by a married individual). and inserting shall not exceed— (i) except as provided in clause (ii), $10,500, and (ii) in the case of a separate return by a married individual, ½ the amount in effect under clause (i). . (2) Inflation adjustment Paragraph (2) of section 129(a) of such Code is amended by adding at the end the following new subparagraph: (D) Adjustment for inflation In the case of taxable years beginning after December 31, 2018, the $10,500 amount under subparagraph (A)(i) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2016 for calendar year 1992 in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $100, such amount shall be rounded to the next lowest multiple of $100. . (b) Effective date The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2017. 3. Allowance of credit for small employer dependent care assistance program start-up costs (a) In general Section 45E of the Internal Revenue Code of 1986 is amended— (1) by striking pension plan in subsection (a) and inserting employee benefit , and (2) by adding at the end the following new subsection: (f) Application to dependent care assistance programs For purposes of this section— (1) an dependent care assistance program of an eligible employer which meets the requirements of section 129(d) shall be treated as an eligible employer plan, and (2) this section (including the limitation under subsection (b)) shall be