110 HR 5142 IH: Family Economic Stimulus Act of U.S. House of Representatives 2008-01-28 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 5142 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.

1.

Short title

This Act may be cited as the Family Economic Stimulus Act of 2008.

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.

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.

4.

2008 stimulus credit

(a)

In general

Section 6428 of the Internal Revenue Code of 1986 is amended to read as follows:

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.

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.

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.