110 HR 5150 IH: To amend the Internal Revenue Code of 1986 to increase 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. 5150 IN THE HOUSE OF REPRESENTATIVES January 28, 2008 Mr. Yarmuth 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 for taxable years beginning in 2008 and provide for the advance payment thereof.

1.

Increase in and acceleration of child tax credit for taxable year 2008

(a)

In general

Subsection (a) of Section 24 of the Internal Revenue Code of 1986 (relating to the child tax credit) is amended by inserting ($1,300 for taxable years beginning in 2008) before the period at the end. (b)

Advance payment of portion of increased credit in 2008

(1)

In general

Section 6429 of such Code (relating to advance payment of portion of increased child credit for 2003) is amended to read as follows:

6429.

Advance payment of portion of increased child credit for 2008

(a)

In general

Each taxpayer who was allowed a credit under section 24 on the return for the taxpayer’s first taxable year beginning in 2007 shall be treated as having made a payment against the tax imposed by chapter 1 for such taxable year in an amount equal to the child tax credit refund amount (if any) for such taxable year. (b)

Child tax credit refund amount

For purposes of this section, the child tax credit refund amount is the amount by which the aggregate credits allowed under part IV of subchapter A of chapter 1 for such first taxable year would have been increased if— (1)the per child amount under section 24(a) for such year were $1,300, (2)only qualifying children (as defined in section 24(c)) of the taxpayer for such year who had not attained age 17 as of December 31, 2008, were taken into account, and (3)section 24(d)(1)(B)(ii) did not apply. (c)

Timing of payments

In the case of any overpayment attributable to this section, 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 October 1, 2008. No refund or credit shall be made or allowed under this section after December 31, 2008. (d)

Coordination with child tax credit

(1)

In general

The amount of credit which would (but for this subsection and section 26) be allowed under section 24 for the taxpayer’s first taxable year beginning in 2008 shall be reduced (but not below zero) by the payments made to the taxpayer under this section. 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 payment under this section with respect to a joint return, half of such payment shall be treated as having been made to each individual filing such return. (e)

No interest

No interest shall be allowed on any overpayment attributable to this section.

. (2)

Clerical amendment

The table of sections for subchapter B of chapter 65 of such Code is amended by adding at the end the following new item: Sec. 6429. Advance payment of portion of increased child credit for 2008. . (c)

Effective dates

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2007. (2)

Subsection (b)

The amendments made by subsection (b) shall take effect on the date of the enactment of this Act.