[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 833 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 833
To amend the Internal Revenue Code of 1986 to expand the child tax
credit.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 3, 2001
Ms. Snowe (for herself, Mr. Dodd, Mr. Jeffords, Mr. Rockefeller, Mr.
Bingaman, and Ms. Collins) introduced the following bill; which was
read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to expand the child tax
credit.
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 ``Child Tax Credit Expansion and
Equity Act''.
SEC. 2. EXPANSION OF CHILD TAX CREDIT; CREDIT MADE PARTIALLY
REFUNDABLE.
(a) Increase in Amount Allowed.--Subsection (a) of section 24 of
the Internal Revenue Code of 1986 (relating to allowance of credit) is
amended to read as follows:
``(a) Allowance of Credit.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year
with respect to each qualifying child of the taxpayer an amount
equal to the applicable amount.
``(2) Applicable amount.--For purposes of paragraph (1),
the applicable amount shall be determined as follows:
``In the case of any taxable year The applicable amount is--
beginning in--
2002.......................................... $600
2003.......................................... 700
2004.......................................... 800
2005.......................................... 900
2006 or thereafter............................ 1,000.''.
(b) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Section 24(b) of the Internal Revenue Code
of 1986 (relating to limitation based on adjusted gross income)
is amended by adding at the end the following new paragraph:
``(3) Limitation based on amount of tax.--The credit
allowed under subsection (a) for any taxable year shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this section) and section 27 for
the taxable year.''.
(2) Conforming amendments.--
(A) Section 24(d) of such Code is amended--
(i) by striking ``section 26(a)'' each
place it appears and inserting ``subsection
(b)(3)'', and
(ii) in paragraph (1)(B) by striking
``aggregate amount of credits allowed by this
subpart'' and inserting ``amount of credit
allowed by this section''.
(B) Paragraph (1) of section 26(a) of such Code is
amended by inserting ``(other than section 24)'' after
``this subpart''.
(C) Section 904(h) is amended by inserting ``(other
than section 24)'' after ``chapter''.
(D) Section 1397E(c)(2) of such Code is amended by
inserting ``section 24 and'' after ``other than''.
(E) The heading for section 24(b) of such Code is
amended to read as follows: ``Limitations.--''.
(F) The heading for section 24(b)(1) of such Code
is amended to read as follows: ``Limitation based on
adjusted gross income.--''.
(c) Portion of Child Credit Treated as Refundable.--
(1) In general.--Paragraph (1) of section 24(d) of the
Internal Revenue Code of 1986 (relating to additional credit
for families with 3 or more children), as amended by subsection
(b)(2)(A), is amended to read as follows:
``(1) In general.--The aggregate credits allowed to a
taxpayer under subpart C shall be increased by the sum of the
credits allowable under this section for all qualifying
children of the taxpayer (determined without regard to this
subsection and the limitation under subsection (b)(3)), except
that the amount of the credit which may be taken into account
under this subsection with respect to any qualifying child
shall not exceed $500. The amount of the credit allowed under
this subsection shall not be treated as a credit allowed under
this subpart and shall reduce the amount of credit otherwise
allowable under subsection (a) without regard to subsection
(b)(3).''.
(2) Conforming amendments.--
(A) Section 24(d) of such Code is amended by
striking paragraph (3).
(B) The heading for section 24(d) of such Code is
amended to read as follows: ``Additional Credit for
Certain Families.--''.
(d) Coordination With Federal Means-Tested Programs.--Section 24(d)
of the Internal Revenue Code of 1986, as amended by subsection (c), is
amended by adding at the end the following new paragraph:
``(3) Coordination with means-tested programs.--For
purposes of any benefits, assistance, or supportive services
under any Federal program or under any State or local program
financed, in whole or in part, with Federal funds, which
imposes income limitations on eligibility for such program, any
refund made to an individual (or the spouse of an individual)
by reason of this subsection shall not be treated as income
(and shall not be taken into account in determining resources
for the month of its receipt and the following month).''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
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