[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3680 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3680

  To amend the Internal Revenue Code of 1986 to modify and extend the 
                        making work pay credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 13, 2012

  Mr. Harkin (for himself, Mr. Udall of New Mexico, and Mr. Sanders) 
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 modify and extend the 
                        making work pay 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 ``2013 Making Working Pay Credit 
Act''.

SEC. 2. EXTENSION AND MODIFICATION OF MAKING WORK PAY CREDIT.

    (a) Extension.--
            (1) In general.--Subsection (e) of section 36A of the 
        Internal Revenue Code of 1986 is amended to read as follows:
    ``(e) Termination.--This section shall not apply--
            ``(1) to taxable years beginning after December 31, 2010, 
        and before January 1, 2013, and
            ``(2) to taxable years beginning after December 31, 
        2013.''.
            (2) Treatment of possessions.--Paragraph (1) of section 
        1001 of division B of the American Recovery and Reinvestment 
        Act of 2009 is amended by striking ``beginning in 2009 and 
        2010'' each place it appears and inserting ``to which section 
        36A of the Internal Revenue Code of 1986 applies''.
    (b) Modification of Credit.--
            (1) Credit amount.--Subsection (a) of section 36A of such 
        Code is amended--
                    (A) in paragraph (1), by striking ``6.2 percent'' 
                and inserting ``6.0 percent'', and
                    (B) in paragraph (2), by striking ``$400 ($800'' 
                and inserting ``$800 ($1,600''.
            (2) Limitation based on modified adjusted gross income.--
                    (A) In general.--Section 36A(b) of such Code is 
                amended by redesignating paragraph (2) as paragraph (3) 
                and by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--The amount allowable as a credit under 
        subsection (a) (determined without regard to this subsection 
        and subsection (c)) for the taxable year shall be reduced (but 
        not below zero) by the amount determined under paragraph (2).
            ``(2) Amount of reduction.--
                    ``(A) In general.--The amount determined under this 
                paragraph is the amount which bears the same ratio to 
                the amount which would be so allowable as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's modified 
                                adjusted gross income for such taxable 
                                year, over
                                    ``(II) $60,000, bears to
                            ``(ii) $30,000.
                    ``(B) Joint returns.--In the case of a joint 
                return, subparagraph (A) shall be applied--
                            ``(i) by substituting `$90,000' for 
                        `$60,000' in clause (i)(II) thereof, and
                            ``(ii) by substituting `$60,000' for 
                        `$30,000' in clause (ii) thereof.
                    ``(C) Married filing separately.--In the case of a 
                married individual filing a separate return, 
                subparagraph (A) shall be applied by substituting 
                `$45,000' for `$60,000' in clause (i)(II) thereof.''.
                    (B) Conforming amendment.--Paragraph (3) of section 
                36A(b) of such Code, as redesignated by subparagraph 
                (A), is amended by striking ``subparagraph (A)'' and 
                inserting ``this subsection''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.
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