[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3583 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3583

 To amend the Internal Revenue Code of 1986 to increase the child tax 
  credit to $1,000 for children under the age of 5 and to allow such 
              credit against the alternative minimum tax.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 30, 1998

   Mr. Wolf 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 increase the child tax 
  credit to $1,000 for children under the age of 5 and to allow such 
              credit against the alternative minimum tax.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Friendly Tax Relief Act of 
1998''.

SEC. 2. $1,000 CHILD TAX CREDIT FOR CHILDREN UNDER AGE 5.

    (a) In General.--Section 24 of the Internal Revenue Code of 1986 
(relating to child tax credit) is amended by redesignating subsections 
(e) and (f) as subsections (g) and (h), respectively, and by inserting 
after subsection (e) the following new subsection:
    ``(f) $1,000 Credit for Qualifying Children Under Age 5.--
            ``(1) In general.--Subsection (a) shall be applied by 
        substituting `$1,000' for `$500' with respect to any qualifying 
        child who has not attained the age of 5 as of the close of the 
        calendar year in which the taxable year of the taxpayer begins.
            ``(2) Coordination with dependent care credit.--This 
        subsection shall apply to a taxpayer for a taxable year only if 
        the taxpayer elects not to have section 21 apply for such 
        year.''
    (b) Conforming Amendment.--Subparagraph (I) of section 6213(g)(2) 
of such Code is amended by striking ``section 24(e)'' and inserting 
``section 24(f)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.

SEC. 3. CHILD TAX CREDIT ALLOWED IN DETERMINING ALTERNATIVE MINIMUM TAX 
              LIABILITY.

    (a) In General.--Subsection (a) of section 26 of the Internal 
Revenue Code of 1986 is amended by inserting ``(other than the credit 
allowed by section 24)'' after ``credits allowed by this subpart''.
    (b) Conforming Amendment.--Section 24 of such Code is amended by 
inserting after subsection (f) (as added by section 2) the following 
new subsection:
    ``(g) Limitation Based on Amount of Tax.--The aggregate credit 
allowed by this section for the taxable year shall not exceed the sum 
of--
            ``(1) the taxpayer's regular tax liability for the taxable 
        year reduced by the sum of the credits allowed by sections 21, 
        22, 23, 25, and 25A, plus
            ``(2) the tax imposed by section 55 for such taxable 
        year.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.
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