[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1862 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1862

  To amend the Internal Revenue Code of 1986 to provide tax relief to 
                     families with young children.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 26, 1993

Mr. Torricelli introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide tax relief to 
                     families with young children.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That (a) subsection (d) 
of section 151 of the Internal Revenue Code of 1986 (relating to 
exemption amount) is amended by adding at the end thereof the following 
new paragraphs:
            ``(5) Increase in exemption amount for certain young 
        children.--
                    ``(A) In general.--In the case of a dependent of 
                the taxpayer who is a qualified child, the exemption 
                amount shall be twice the amount which would otherwise 
                have been determined under this subsection.
                    ``(B) Qualified child.--For purposes of this 
                paragraph, the term `qualified child' means any child 
                (as defined in subsection (c)(3)) of the taxpayer if--
                            ``(i) such child has not attained age 7 
                        before the close of the taxable year, and
                            ``(ii) the taxpayer elects to treat such 
                        child as a qualified child under this paragraph 
                        for such taxable year.
            ``(6) Recapture rules.--
                    ``(A) In general.--If the taxpayer made an election 
                under paragraph (5)(B) with respect to any child for 1 
                or more taxable years, the tax imposed by this chapter 
                on such taxpayer for each taxable year in the recapture 
                period for such child shall be increased by an amount 
                equal to--
                            ``(i) the recapture amount with respect to 
                        such child, divided by
                            ``(ii) the number of taxable years in the 
                        recapture period.
                    ``(B) Recapture period.--For purposes of this 
                paragraph, the recapture period for any child is the 
                period of consecutive taxable years--
                            ``(i) which begins with the taxable year in 
                        which the child attains age 7, and
                            ``(ii) which consists of a number of 
                        taxable years equal to two times the number of 
                        taxable years for which the child was treated 
                        as a qualified child under paragraph (5).
                    ``(C) Recapture amount.--For purposes of this 
                paragraph, the recapture amount with respect to any 
                child is the aggregate decrease in the taxpayer's tax 
                under this chapter for prior taxable years by reason of 
                treating such child as a qualified child under 
                paragraph (5).
                    ``(D) Special rule.--Any increase in tax under this 
                paragraph shall not be treated as a tax imposed by this 
                chapter for purposes of--
                            ``(i) determining the amount of any credit 
                        allowable under this chapter, and
                            ``(ii) determining the amount of the 
                        minimum tax imposed by section 55.''
    (b) The amendment made by subsection (a) shall apply to taxable 
years beginning after December 31, 1993.

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