[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4045 Introduced in House (IH)]

<DOC>






114th CONGRESS
  1st Session
                                H. R. 4045

            To establish USAccounts, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 17, 2015

  Mr. Crowley (for himself and Mr. Ellison) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
            To establish USAccounts, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``USAccounts: 
Investing in America's Future Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. USAccount Fund.
Sec. 4. USAccounts.
Sec. 5. Assignment, alienation, and treatment of deceased individuals.
Sec. 6. Rules governing USAccounts relating to investment, accounting, 
                            and reporting.
Sec. 7. USAccount Fund Board.
Sec. 8. Fiduciary responsibilities.
Sec. 9. Accounts disregarded in determining eligibility for Federal 
                            benefits.
Sec. 10. Reports.
Sec. 11. Tax provisions.
Sec. 12. Earned Income Tax Credit outreach.
    (c) Definitions.--For purposes of this Act--
            (1) USAccount fund.--The term ``USAccount Fund'' means the 
        fund established under section 3.
            (2) USAccount.--The term ``USAccount'' means an account 
        established under section 4.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
            (4) USAccount fund board.--The term ``USAccount Fund 
        Board'' means the board established pursuant to section 7.
            (5) Executive director.--The term ``Executive Director'' 
        means the executive director appointed pursuant to section 7.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Americans recognize the importance of savings to create 
        a more secure financial future for their family but barriers to 
        entry have blocked participation in savings programs, leading 
        to drastic disparities in asset building and wealth creation.
            (2) Most working families in America lack savings and face 
        financial insecurity as a result. Forty-four percent of 
        families are ``liquid asset poor'', meaning they lack 
        accessible savings to survive for three months at the Federal 
        poverty level.
            (3) Of that number, over two-thirds of African-Americans 
        (67 percent) could be considered ``liquid asset poor'' as are 
        nearly three-fourths of Latinos (71 percent).
            (4) Families with children face additional barriers to 
        building savings. These families are more likely than childless 
        households to live in asset poverty.
            (5) There is a strong link between savings and economic 
        opportunity. Children in the poorest fifth of households who 
        manage to move up the income ladder as adults have almost ten 
        times the wealth of those who remain at the bottom.
            (6) Children's savings accounts programs are evidence-based 
        and have been tested throughout the country. In 2003, the 
        Saving for Education, Entrepreneurship, and Downpayment (SEED) 
        national demonstration project was established to evaluate the 
        policy and practice of savings accounts for children. SEED 
        found that even very low-income parents will save and invest 
        for their children's future if given the opportunity.
            (7) In 2011, the city of San Francisco began offering child 
        savings accounts, expanding them to all children enrolled in 
        public kindergarten starting in 2013. Their experiment proves 
        what SEED documented in 2003--very low-income parents will save 
        and invest for their children's future if given the 
        opportunity.
            (8) Data from San Francisco's nascent Kindergarten to 
        College Account program demonstrates that families, even those 
        of lower income, are contributing their own funds towards their 
        child's education at a rate of four times higher than Americans 
        of all income limits are towards tax advantaged 529 college 
        savings plans.
            (9) Even a small amount of children's savings can have a 
        significant impact on college success, a key driver of economic 
        mobility. Low- and moderate-income children with less than $500 
        saved for college are three times more likely to enroll in 
        college and four times more likely to graduate than children 
        with no savings.
            (10) In the 4 years that the San Francisco Pilot program 
        has been in existence, families have deposited over $1 million 
        in new savings, helping to build assets for participating 
        families.
            (11) In order to expand economic opportunity and spur 
        economic growth, the United States should promote savings and 
        investments for all Americans.

SEC. 3. USACCOUNT FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund to be known as the ``USAccount Fund''.
    (b) Amounts Held by Fund.--The USAccount Fund consists of the sum 
of all amounts paid into the Fund under this Act, increased by the 
total net earnings from investments of sums held in the Fund or reduced 
by the total net losses from investments of sums held in the Fund, and 
reduced by the total amount of payments made from the Fund (including 
payments for administrative expenses).
    (c) Use of Fund.--
            (1) In general.--The sums in the USAccount Fund are 
        appropriated and shall remain available without fiscal year 
        limitation--
                    (A) to make contributions to USAccounts,
                    (B) to invest under section 6,
                    (C) to make distributions in accordance with this 
                Act,
                    (D) to pay the administrative expenses of carrying 
                out this Act, and
                    (E) to purchase insurance as provided in section 
                8(c)(2).
            (2) Exclusive purposes.--The sums in the USAccount Fund 
        shall not be appropriated for any purpose other than the 
        purposes specified in this section and may not be used for any 
        other purpose.
    (d) Transfers to USAccount Fund.--The Secretary shall make 
transfers from the general fund of the Treasury to the USAccount Fund 
as follows:
            (1) Automatic contribution.--Upon receipt of a 
        certification under section 4(b)(2) with respect to an 
        individual, the Secretary shall transfer $500 to the USAccount 
        of the individual.
            (2) Matching contributions.--Upon receipt of each 
        certification under section 4(d) with respect to an individual, 
        the Secretary shall transfer the matching amount to the 
        USAccount of the individual.
    (e) Private Contributions.--The Executive Director shall pay into 
the USAccount Fund such amounts as are contributed under section 4(c).
    (f) Prohibition on Use of Payroll Taxes To Fund USAccounts.--The 
USAccount Fund and USAccounts are wholly separate and unique from the 
Social Security system. No amount from any tax on employment may be 
contributed to the USAccount Fund or USAccounts.

SEC. 4. USACCOUNTS.

    (a) In General.--
            (1) Establishment.--The Executive Director shall establish 
        in the USAccount Fund an account (to be known as a 
        ``USAccount'') for each qualifying account holder certified 
        under subsection (b). Each such account shall be identified to 
        its account holder by means of a unique personal identifier 
        currently recognized by the Internal Revenue Service and shall 
        remain in the USAccount Fund unless transferred to private 
        management under subsection (g).
            (2) Account balance.--The balance in an account holder's 
        USAccount at any time is the excess of--
                    (A) the sum of--
                            (i) all deposits made into the USAccount 
                        Fund and credited to the account under 
                        paragraph (3), and
                            (ii) the total amount of allocations made 
                        to and reductions made in the account pursuant 
                        to paragraph (4), over
                    (B) the amounts paid out of the account with 
                respect to such individual under subsection (d).
            (3) Crediting of contributions.--Pursuant to regulations 
        which shall be prescribed by the Executive Director, the 
        Executive Director shall credit to each USAccount the amounts 
        paid into the USAccount Fund under section 3(d) which are 
        attributable to the account holder of such account.
            (4) Allocation of earnings and losses.--The Executive 
        Director shall allocate to each USAccount an amount equal to 
        the net earnings and net losses from each investment of sums in 
        the USAccount Fund which are attributable, on a pro rata basis, 
        to sums credited to such account, reduced by an appropriate 
        share of the administrative expenses paid out of the net 
        earnings, as determined by the Executive Director.
    (b) Qualifying Account Holder.--For purposes of this Act--
            (1) In general.--The term ``qualifying account holder'' 
        means any individual who--
                    (A) was born after December 31, 2017,
                    (B) has not yet attained the age of 18 years, and
                    (C) has a valid, unique, Federal Government issued 
                identification number recognized by the Internal 
                Revenue Service.
            (2) Certification of account holders.--On the date on which 
        a qualifying account holder is registered for a USAccount, the 
        Secretary shall certify to the Executive Director the name of 
        such qualifying account holder.
    (c) Private Contributions.--
            (1) In general.--The Executive Director shall accept cash 
        contributions from any person (including churches, charities, 
        private foundations, businesses, or civic leagues) for payment 
        into the USAccount Fund if such contribution is identified (in 
        such manner as the Executive Director may require) with the 
        account holder of a USAccount to whom it is to be credited at 
        the time the contribution is made.
            (2) Alternative methods of contribution.--
                    (A) Payroll deduction.--Under regulations 
                prescribed by the Executive Director and at the 
                election of the employer, contributions under paragraph 
                (1) may be made through payroll deductions.
                    (B) Tax refunds.--Under regulations prescribed by 
                the Secretary, contributions under paragraph (1) may be 
                made by an election to contribute all or a portion of 
                the tax refund of the contributor.
            (3) Annual limitation.--No contribution may be accepted 
        under paragraph (1)--
                    (A) unless it is in cash,
                    (B) after the date on which the USAccount holder 
                ceases to be a qualifying account holder, and
                    (C) except in the case of matching contributions 
                under subsection (d), if such contribution would result 
                in aggregate contributions for the calendar year 
                exceeding $2,000.
    (d) Government Matching Contribution.--
            (1) In general.--Upon such showing as the Executive 
        Director may require to establish the basis for certification, 
        the Executive Director shall, with respect to each private 
        contribution to the account of an account holder which is made 
        before such account holder attains age 18, certify to the 
        Secretary the matching amount with respect to such 
        contribution.
            (2) Matching amount.--
                    (A) In general.--For purposes of this subsection, 
                the term ``matching amount'' means, an amount equal to 
                100 percent of contributions made by the account holder 
                (or a legal guardian of the account holder) to the 
                USAccount of an individual during any calendar year 
                beginning after the calendar year in which the 
                USAccount is established, not in excess of $500 for the 
                calendar year.
                    (B) Phaseout based on earned income credit 
                phaseout.--The $500 amount in subparagraph (A) shall be 
                zero if the adjusted gross income (or, if greater, the 
                earned income) of the taxpayer for the taxable year as 
                exceeds the phaseout amount. For purposes of this 
                paragraph, terms used in the preceding sentence which 
                are used in section 32 of the Internal Revenue Code of 
                1986 shall have the meanings given such terms by such 
                section 32.
    (e) Distributions.--
            (1) In general.--No amount may be distributed from a 
        USAccount before the date on which the account holder attains 
        the age of 18.
            (2) Higher education expenses.--Paragraph (1) shall not 
        apply to amounts paid for qualified tuition and related 
        expenses (as defined in section 25A(f)(1) of the Internal 
        Revenue Code of 1986) of the account holder if the account 
        holder is an eligible student (as defined in section 25A(b)(3) 
        of such Code) with respect to such expenses.
            (3) Rollover.--
                    (A) In general.--Not later than 180 days after the 
                date on which the account holder attains the age of 18, 
                the balance of such individual's account shall be 
                transferred to a USAccount IRA established on behalf of 
                the individual and shall be treated as a rollover 
                contribution which meets the requirements of section 
                408(d)(3) of such Code.
                    (B) USAccount ira.--
                            (i) In general.--Except as provided in 
                        clauses (ii) and (iii), a USAccount IRA is an 
                        individual retirement account (as defined in 
                        section 7701(a)(37) of such Code) which is 
                        established by the Executive Director and 
                        designated at the time of the establishment of 
                        the account as a USAccount IRA.
                            (ii) Distributions.--No amount may be 
                        distributed from a USAccount IRA to an account 
                        holder or other beneficiary earlier than the 
                        account holder attains the age of 59\1/2\, 
                        except--
                                    (I) distributions which are made to 
                                a beneficiary (or to the estate of the 
                                account holder) upon death of the 
                                account holder,
                                    (II) distributions described in 
                                paragraph (2),
                                    (III) qualified first-time 
                                homebuyer distributions (as defined in 
                                section 72(t)(8) of such Code),
                                    (IV) distributions for qualified 
                                medical expenses,
                                    (V) any distribution which would 
                                not be includible in gross income if 
                                made from a qualified ABLE program (as 
                                defined in section 529A(b) of such 
                                Code) with respect to the account 
                                holder or a member of the family (as 
                                defined in section 529A(e)(4)) of the 
                                account holder,
                                    (VI) any distribution used to 
                                prevent foreclosure on the principal 
                                residence of the account holder, and
                                    (VII) any distribution used to 
                                start a small business.
                        Any distribution described in subclauses (I) 
                        through (VII) shall not be included in gross 
                        income.
                            (iii) No rollovers from usaccount ira.--No 
                        amounts may be rolled over from a USAccount 
                        IRA.
    (f) Rights of Legal Guardian.--Until the account holder of a 
USAccount attains age 18, any rights or duties of the account holder 
under this Act with respect to such account shall be exercised or 
performed by the legal guardian of such account holder.
    (g) Private Management.--
            (1) In general.--The account holder of a USAccount may 
        elect, under regulations prescribed by the Secretary, to 
        transfer the USAccount to a trustee who meets the requirements 
        of paragraph (2).
            (2) Trustee requirements.--A trustee meets the requirements 
        of this paragraph if the trustee--
                    (A) is a bank (as defined in section 408(n)) or 
                another person who demonstrates to the satisfaction of 
                the Secretary that the manner in which that person will 
                administer the USAccount will be consistent with the 
                requirements of this Act or who has so demonstrated 
                with respect to any USAccount,
                    (B) agrees to a reasonable cap on its fees and 
                costs, as determined by the Treasury, for the 
                management of USAccounts,
                    (C) provides an investment fund that maximizes 
                growth over time while minimizing risk, and
                    (D) provides the safeguards with respect to 
                USAccounts required by the Secretary.
            (3) Additional requirements.--For purposes of this 
        subsection, rules similar to the rules of paragraphs (3), (4), 
        and (5) of section 408 of the Internal Revenue Code of 1986 
        shall apply.
    (h) Adjustment for Inflation.--
            (1) In general.--For each calendar year beginning after 
        2015, the dollar amounts under sections 3(e)(1), 4(c)(3)(C), 
        and 4(d)(2) shall each be increased by such dollar amount 
        multiplied by the cost-of-living adjustment determined under 
        section 1(f)(3) of the Internal Revenue Code of 1986 determined 
        by substituting ``calendar year 2014'' for ``calendar year 
        1992'' in subparagraph (B) thereof.
            (2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $50, such amount shall be rounded to the 
        next lowest multiple of $50.

SEC. 5. ASSIGNMENT, ALIENATION, AND TREATMENT OF DECEASED INDIVIDUALS.

    (a) Assignment and Alienation.--Under regulations which shall be 
prescribed by the Executive Director, rules relating to assignment and 
alienation applicable under chapter 84 of title 5, United States Code, 
with respect to amounts held in accounts in the Thrift Savings Fund 
shall apply with respect to amounts held in USAccounts in the USAccount 
Fund.
    (b) Treatment of Accounts of Deceased Individuals.--In the case of 
a deceased account holder of a USAccount which has an account balance 
greater than zero, upon receipt of notification of such individual's 
death, the Executive Director shall close the account and shall 
transfer the balance in such account to the duly appointed legal 
representative of the estate of the deceased account holder, or if 
there is no such representative, to the person or persons determined to 
be entitled thereto under the laws of the domicile of the deceased 
account holder.

SEC. 6. RULES GOVERNING USACCOUNTS RELATING TO INVESTMENT, ACCOUNTING, 
              AND REPORTING.

    (a) Default Investment Program.--The Secretary shall establish, and 
the USAccount Fund Board shall invest in, a retirement savings bond 
that earns interest at the same annual percentage rate as securities 
issued to the Government Securities Investment Fund in the Thrift 
Savings Plan for Federal employees as determined under section 
8438(e)(2) of title 5, United States Code, and shall be compounded 
daily at \1/260\ of the annual percentage rate.
    (b) Other Rules.--
            (1) In general.--Under regulations which shall be 
        prescribed by the Executive Director, and subject to the 
        provisions of this Act, the following provisions shall apply 
        with respect to the USAccount Fund and accounts maintained in 
        such Fund in the same manner and to the same extent as such 
        provisions relate to the Thrift Savings Fund and the accounts 
        maintained in the Thrift Savings Fund:
                    (A) Section 8438 of title 5, United States Code 
                (relating to investment of the Thrift Savings Fund).
                    (B) Section 8439(b) of such title (relating to 
                engagement of independent qualified public accountant).
                    (C) Section 8439(c) of such title (relating to 
                periodic statements and summary descriptions of 
                investment options).
                    (D) Section 8439(d) of such title (relating to 
                assumption of risk).
            (2) Application rules.--For purposes of paragraph (1), 
        references in such sections 8438 and 8439 to an employee, 
        Member, former employee, or former Member shall be deemed 
        references to an account holder of a USAccount in the USAccount 
        Fund.
    (c) Confidentiality and Disclosure.--
            (1) In general.--Except as otherwise authorized by Federal 
        law, the USAccount Fund Board, the Executive Director, and any 
        employee of the USAccount Fund Board shall not disclose 
        information with respect to the USAccount Fund or any account 
        maintained in such Fund.
            (2) Disclosure to designee of beneficiary.--The Executive 
        Director may, subject to such requirements and conditions as he 
        may prescribe by regulations, disclose such information with 
        respect to the USAccount of the beneficiary to such person or 
        persons as the beneficiary may designate in a request for or 
        consent to such disclosure, or to any other person at the 
        beneficiary's request to the extent necessary to comply with a 
        request for information or assistance made by the beneficiary 
        to such other person.

SEC. 7. USACCOUNT FUND BOARD.

    (a) In General.--There is established in the executive branch of 
the Government a USAccount Fund Board.
    (b) Composition, Duties, and Responsibilities.--Subject to the 
provisions of this Act, the following provisions shall apply with 
respect to the USAccount Fund Board in the same manner and to the same 
extent as such provisions relate to the Federal Retirement Thrift 
Investment Board:
            (1) Section 8472 of title 5, United States Code (relating 
        to composition of Federal Retirement Thrift Investment Board).
            (2) Section 8474 of such title (relating to Executive 
        Director).
            (3) Section 8475 of such title (relating to investment 
        policies).
            (4) Section 8476 of such title (relating to administrative 
        provisions).

SEC. 8. FIDUCIARY RESPONSIBILITIES.

    (a) In General.--Under regulations of the Secretary of Labor, the 
provisions of sections 8477 and 8478 of title 5, United States Code, 
shall apply in connection with the USAccount Fund and the accounts 
maintained in such Fund in the same manner and to the same extent as 
such provisions apply in connection with the Thrift Savings Fund and 
the accounts maintained in the Thrift Savings Fund.
    (b) Investigative Authority.--Any authority available to the 
Secretary of Labor under section 504 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1134) is hereby made available to the 
Secretary of Labor, and any officer designated by the Secretary of 
Labor, to determine whether any person has violated, or is about to 
violate, any provision applicable under subsection (a).
    (c) Exculpatory Provisions; Insurance.--
            (1) In general.--Any provision in an agreement or 
        instrument which purports to relieve a fiduciary from 
        responsibility or liability for any responsibility, obligation, 
        or duty under this Act shall be void.
            (2) Insurance.--Amounts in the USAccount Fund available for 
        administrative expenses shall be available and may be used at 
        the discretion of the Executive Director to purchase insurance 
        to cover potential liability of persons who serve in a 
        fiduciary capacity with respect to the Fund and accounts 
        maintained therein, without regard to whether a policy of 
        insurance permits recourse by the insurer against the fiduciary 
        in the case of a breach of a fiduciary obligation.

SEC. 9. ACCOUNTS DISREGARDED IN DETERMINING ELIGIBILITY FOR FEDERAL 
              BENEFITS.

    Amounts in any USAccount shall not be taken into account in 
determining any individual's or household's financial eligibility for, 
or amount of, any benefit or service, paid for in whole or in part with 
Federal funds, including student financial aid.

SEC. 10. REPORTS.

    (a) Reports to Congress.--The Executive Director, in consultation 
with the Secretary, shall annually transmit a written report to the 
Congress. Such report shall include--
            (1) a detailed description of the status and operation of 
        the USAccount Fund and the management of the USAccounts, and
            (2) a detailed accounting of the administrative expenses in 
        carrying out this Act, including the ratio of such 
        administrative expenses to the balance of the USAccount Fund 
        and the methodology adopted by the Executive Director for 
        allocating such expenses among the USAccounts.
    (b) Reports to Account Holders.--The USAccount Fund Board shall 
prescribe regulations under which each individual for whom a USAccount 
is maintained shall be furnished with an annual statement relating to 
the individual's account, which shall include--
            (1) a statement of the balance of individual's USAccount,
            (2) a projection of the account's growth by the time the 
        individual attains the age of 18, and
            (3) such other information as the Secretary deems relevant.

SEC. 11. TAX PROVISIONS.

    (a) Tax Treatment of USAccounts.--Subchapter F of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new part:

                ``PART IX--USACCOUNT FUND AND USACCOUNTS

``Sec. 530A. USAccount Fund and USAccounts.

``SEC. 530A. USACCOUNT FUND AND USACCOUNTS.

    ``(a) General Rule.--The USAccount Fund and USAccounts shall be 
exempt from taxation under this subtitle. Notwithstanding the preceding 
sentence, a USAccount shall be subject to the taxes imposed by section 
511 (relating to imposition of tax on unrelated business income of 
charitable organizations).
    ``(b) Definitions.--For purposes of this section, the terms 
`USAccount Fund' and `USAccount' have the meanings given such terms by 
the USAccounts: Investing in America's Future Act of 2015.
    ``(c) Tax Treatment of Distributions.--Any amount paid or 
distributed out of a USAccount--
            ``(1) which meets the distribution rules of the USAccounts: 
        Investing in America's Future Act of 2015 shall not be 
        includible in gross income, and
            ``(2) which does not meet the distribution rules of section 
        4(e) of such Act shall be included in the gross income of the 
        account holder.''.
    (b) Enforcement Provisions Relating to Private Management of 
USAccounts.--
            (1) Excess contributions.--Section 4973 of the Internal 
        Revenue Code of 1986 is amended--
                    (A) by striking ``or'' at the end of subsection 
                (a)(4), by inserting ``or'' at the end of subsection 
                (a)(5), and by inserting after subsection (a)(5) the 
                following new paragraph:
            ``(5) a USAccount subject to management under section 4(g) 
        of the USAccounts: Investing in America's Future Act of 
        2015,'', and
                    (B) by adding at the end the following new 
                subsection:
    ``(h) Excess Contributions to Privately Managed USAccounts.--For 
purposes of this section, in the case of a USAccount subject to 
management under section 4(g) of the USAccounts: Investing in America's 
Future Act of 2015, the term `excess contributions' means the sum of--
            ``(1) the aggregate amount contributed for the taxable year 
        to the account, and
            ``(2) the amount determined under this subsection for the 
        preceding taxable year, reduced by the sum of--
                    ``(A) the distributions out of the account, and
                    ``(B) the excess (if any) of--
                            ``(i) the maximum amount allowable as a 
                        contribution under section 4(c)(3)(C) of the 
                        USAccounts: Investing in America's Future Act 
                        of 2015 for the taxable year, over
                            ``(ii) the amount contributed to the 
                        account for the taxable year.''.
            (2) Prohibited transactions.--Section 4975 of the Internal 
        Revenue Code of 1986 is amended--
                    (A) by adding at the end of subsection (c) the 
                following new paragraph:
            ``(7) Special rule for usaccounts.--An individual for whose 
        benefit a USAccount subject to management under section 4(g) of 
        the USAccounts: Investing in America's Future Act of 2015 shall 
        be exempt from the tax imposed by this section with respect to 
        any transaction concerning such account (which would otherwise 
        be taxable under this section) if, with respect to such 
        transaction, the account ceases to be a USAccount by reason of 
        the application of section 530A(c)(2) to such account.'', and
                    (B) in subsection (e)(1) by redesignating 
                subparagraph (G) as subparagraph (H) and by inserting 
                after subparagraph (F) the following new subparagraph:
                    ``(G) a USAccount subject to management under 
                section 4(g) of the USAccounts: Investing in America's 
                Future Act of 2015,''.
    (c) Increase in Child Tax Credit.--
            (1) In general.--Section 24 of the Internal Revenue Code of 
        1986 is amended by adding at the end the following:
    ``(g) USAccount Contributions.--For purposes of this section--
            ``(1) In general.--The amount allowed as a credit under 
        subsection (a) shall be increased by the USAccount contribution 
        amount.
            ``(2) USAccount contribution amount.--The term `USAccount 
        contribution amount' means with respect to each qualifying 
        account holder the amount contributed by the taxpayer to the 
        USAccount of the taxpayer for the taxable year which is taken 
        into account under section 4(d)(2)(B)(I) of the USAccounts: 
        Investing in America's Future Act of 2015.
            ``(3) Limitation.--The amount under paragraph (2) shall be 
        reduced (but not below zero) under subsection (b)(1) in the 
        same manner as the credit under subsection (a) is reduced under 
        subsection (b)(1).
            ``(4) Amount fully refundable.--The aggregate credits 
        allowed to the taxpayer under subpart C shall be increased by 
        the amount of the increase under this subsection and such 
        amount--
                    ``(A) shall not be treated as a credit allowed 
                under this subpart, and
                    ``(B) shall reduce the amount of credit otherwise 
                allowable under subsection (a) without regard to 
                section 26(a).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 12. EARNED INCOME TAX CREDIT OUTREACH.

    Section 32 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subsection:
    ``(n) Earned Income Tax Credit Outreach.--
            ``(1) In general.--To the extent practicable and not 
        otherwise precluded by section 6511, in the case of any 
        taxpayer who, based on information available to the Secretary, 
        did not claim, but may be allowed, a credit under subsection 
        (a) for a preceding taxable year, the Secretary shall annually 
        provide to each such taxpayer notice that such taxpayer may be 
        eligible to claim such credit.
            ``(2) Determination of credit and deposit.--Not earlier 
        than 60 days after providing notice under paragraph (1) to a 
        taxpayer with respect to a taxable year, if such taxpayer fails 
        to claim the credit under this section for such taxable year, 
        the Secretary shall determine the credit on behalf of the 
        taxpayer. Any refund attributable to such credit shall be--
                    ``(A) deposited in the USAccount of any dependents 
                of the taxpayer (pro rata in the case of more than one 
                USAccount), or
                    ``(B) in the case of a taxpayer with dependents who 
                do not have a USAccount or a taxpayer with no 
                dependents, paid directly to the taxpayer.
        For purposes of this paragraph, the term `USAccount' shall have 
        the meaning given such term by section 4 of the USAccounts: 
        Investing in America's Future Act of 2015. The Secretary shall 
        not collect any overpayment of the credit determined under this 
        paragraph if such overpayment is attributable to an error of 
        the Secretary.''.
                                 <all>