1. Short title This Act may be cited as the Child and Dependent Care Tax Credit Enhancement Act of 2017 . 2. Enhancement of Child and Dependent Care Tax Credit (a) In general Paragraph (2) of section 21(a) of the Internal Revenue Code of 1986 is amended to read as follows: (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage means 50 percent reduced (but not below 20 percent) by 1 percentage point for each $2,000 (or fraction thereof) by which the taxpayer's adjusted gross income for the taxable year exceeds $120,000. . (b) Increase in dollar limit on amount creditable Subsection (c) of section 21 of such Code is amended— (1) in paragraph (1), by striking $3,000 and inserting $6,000 ; and (2) in paragraph (2), by striking $6,000 and inserting $12,000 . (c) Adjustment for inflation Section 21 of such Code is amended— (1) by redesignating subsection (f) as subsection (g); and (2) by inserting after subsection (e) the following new subsection: (f) Inflation adjustment (1) In general In the case of a calendar year beginning after 2018, the $120,000 amount in paragraph (2) of subsection (a) and the dollar amounts in subsection (c) shall each be increased by an amount equal to— (A) such dollar amount, multiplied by (B) 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 2017 for calendar year 1992 in subparagraph (B) thereof. (2) Rounding If any dollar amount, after being increased under paragraph (1), is not a multiple of $100, such dollar amount shall be rounded to the next lowest multiple of $100. . (d) Credit To Be Refundable (1) In general The Internal Revenue Code of 1986 is amended— (A) by redesignating section 21 as section 36C