Limits to one year starting FY2008 (currently three years) the initial availability of SCHIP allotments.

Revises requirements for redistribution of unused allotments to address state funding shortfalls.

Provides for bonus payments for states that implement administrative policies to streamline enrollment procedures under Medicaid and SCHIP.

Gives states the option to provide for "express lane" and simplified determinations of a child's financial eligibility for Medicaid or SCHIP.

Provides for enhanced federal funding for improvements related to implementation of certain model outreach and enrollment practices.

Provides for: (1) optional coverage of targeted low-income pregnant women under SCHIP; (2) optional coverage of legal immigrants under Medicaid and SCHIP; (3) adjustment of SCHIP allotment due to increased outreach; (4) grants to promote innovative outreach and enrollment under Medicaid and SCHIP; (5) authority for qualifying states to use a portion of their SCHIP allotment for any fiscal year for certain Medicaid expenditures; and (6) application of Medicaid outreach procedures to all pregnant women and children.

Prohibits limitations on enrollment under SCHIP.

Amends the Internal Revenue Code to provide for: (1) a tax credit for qualified health insurance for qualifying children; and (2) advanced payment of such credit.

Requires that, if a broker is otherwise required to make a return with respect to any applicable security, the broker shall include in it the customer's adjusted basis for each such security.