[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5142 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5142

   To amend the Internal Revenue Code of 1986 to provide an economic 
                       stimulus for individuals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 28, 2008

 Mr. English of Pennsylvania 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 an economic 
                       stimulus for individuals.

    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 Economic Stimulus Act of 
2008''.

SEC. 2. RETROACTIVE, 2-YEAR MORATORIUM ON INCLUSION OF UNEMPLOYMENT 
              COMPENSATION IN GROSS INCOME.

    (a) In General.--Section 85 of the Internal Revenue Code of 1986 
(relating to unemployment compensation) is amended by adding at the end 
the following new subsection:
    ``(c) Moratorium.--This section shall not apply to any taxable year 
beginning in 2007 or 2008.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. TEMPORARY INCREASE IN CHILD CREDIT.

    (a) In General.--Subsection (a) of section 24 of the Internal 
Revenue Code of 1986 (relating to allowance of credit) is amended by 
inserting ``($1,200 in the case of the first taxable year beginning in 
2008)'' after ``$1,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2007.

SEC. 4. 2008 STIMULUS CREDIT.

    (a) In General.--Section 6428 of the Internal Revenue Code of 1986 
is amended to read as follows:

``SEC. 6428. 2008 STIMULUS CREDIT.

    ``(a) In General.--In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by chapter 1 for 
the taxpayer's first taxable year beginning in 2008 an amount equal to 
$400 ($800 in the case of a joint return).
    ``(b) Limitation Based on Adjusted Gross Income.--
            ``(1) In general.--The amount of the credit allowable under 
        subsection (a) shall be zero if the modified adjusted gross 
        income of the taxpayer exceeds the threshold amount. For 
        purposes of the preceding sentence, the term `modified adjusted 
        gross income' means adjusted gross income increased by any 
        amount excluded from gross income under section 911, 931, or 
        933.
            ``(2) Threshold amount.--For purposes of paragraph (1), the 
        term `threshold amount' means--
                    ``(A) $115,000 in the case of a joint return and 
                head of household (as defined in section 2(b)),
                    ``(B) $75,000 in the case of an individual who is 
                not married, and
                    ``(C) $57,500 in the case of a married individual 
                filing a separate return.
        For purposes of this paragraph, marital status shall be 
        determined under section 7703.
    ``(c) Credit Treated as Nonrefundable Personal Credit.--For 
purposes of this title, the credit allowed under this section shall be 
treated as a credit allowable under subpart A of part IV of subchapter 
A of chapter 1.
    ``(d) Eligible Individual.--For purposes of this section, the term 
`eligible individual' means any individual other than--
            ``(1) any estate or trust,
            ``(2) any nonresident alien individual, and
            ``(3) any individual with respect to whom a deduction under 
        section 151 is allowable to another taxpayer for a taxable year 
        beginning in the calendar year in which the individual's 
        taxable year begins.
    ``(e) Coordination With Advance Refunds of Credit.--
            ``(1) In general.--The amount of credit which would (but 
        for this paragraph) be allowable under this section shall be 
        reduced (but not below zero) by the aggregate refunds and 
        credits made or allowed to the taxpayer under subsection (e). 
        Any failure to so reduce the credit shall be treated as arising 
        out of a mathematical or clerical error and assessed according 
        to section 6213(b)(1).
            ``(2) Joint returns.--In the case of a refund or credit 
        made or allowed under subsection (f) with respect to a joint 
        return, half of such refund or credit shall be treated as 
        having been made or allowed to each individual filing such 
        return.
    ``(f) Advance Refunds of Credit Based on Prior Year Data.--
            ``(1) In general.--Each individual who was an eligible 
        individual for such individual's first taxable year beginning 
        in 2006 shall be treated as having made a payment against the 
        tax imposed by chapter 1 for such first taxable year in an 
        amount equal to the advance refund amount for such taxable 
        year.
            ``(2) Advance refund amount.--For purposes of paragraph 
        (1), the advance refund amount is the amount that would have 
        been allowed as a credit under this section for such first 
        taxable year if--
                    ``(A) this section (other than subsections (c) and 
                (e) and this subsection) had applied to such taxable 
                year, and
                    ``(B) the credit for such taxable year were not 
                allowed to exceed the excess (if any) of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under part IV of subchapter A of chapter 1 
                        (other than the credits allowable under subpart 
                        C thereof, relating to refundable credits).
            ``(3) Timing of payments.--In the case of any overpayment 
        attributable to this subsection, the Secretary shall, subject 
        to the provisions of this title, refund or credit such 
        overpayment as rapidly as possible and, to the extent 
        practicable, before the date which is 120 days after the date 
        of the enactment of this section. No refund or credit shall be 
        made or allowed under this subsection after December 31, 2008.
            ``(4) No interest.--No interest shall be allowed on any 
        overpayment attributable to this subsection.''.
    (b) Conforming Amendment.--Paragraph (1) of section 1(i) of such 
Code is amended by striking subparagraph (D).
    (c) Clerical Amendment.--The item relating to section 6428 in the 
table of sections for subchapter B of chapter 65 of such Code is 
amended to read as follows:

``Sec. 6428. 2008 stimulus credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 5. ALTERNATIVE EXTENDED-BENEFITS INDICATORS.

    (a) In General.--For purposes of determining whether there are 
State ``on'' or ``off'' indicators (within the meaning of section 
203(d) of the Federal-State Extended Unemployment Compensation Act of 
1970 (26 U.S.C. 3304 note)) for any of the first 52 weeks beginning on 
or after the date of the enactment of this Act, such section 203(d) 
shall be applied by substituting ``4'' for ``5'' each place it appears.
    (b) Definitions.--For purposes of this section, the terms ``State'' 
and ``week'' have the respective meanings given such terms by section 
205 of such Act.

SEC. 6. REQUIRED DISTRIBUTION OF STATE-SPECIFIC INFORMATION PACKETS.

    (a) In General.--Subsection (a) of section 3304 of the Internal 
Revenue Code of 1986 (relating to approval of State laws) is amended by 
striking ``and'' at the end of paragraph (18), by striking the period 
at the end of paragraph (19) and inserting ``; and'', and by inserting 
after paragraph (19) the following new paragraph:
            ``(20) the State will distribute to unemployed individuals 
        State-specific information packets explaining unemployment 
        insurance eligibility conditions.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to certifications of States for 2008 and thereafter, except that 
section 3304(a)(20) of the Internal Revenue Code of 1986, as added by 
subsection (a), shall not be a requirement for the State law of any 
State prior to July 1, 2009, if the legislature of such State does not 
meet in a regular session which closes during the calendar year 2008.
                                 <all>