[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1994 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1994

  To amend the Internal Revenue Code of 1986 to increase certain fuel 
taxes and to strengthen the earned income tax credit and make permanent 
certain tax provisions under the American Recovery and Reinvestment Act 
                                of 2009.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 2015

  Mr. Carper 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 increase certain fuel 
taxes and to strengthen the earned income tax credit and make permanent 
certain tax provisions under the American Recovery and Reinvestment Act 
                                of 2009.

    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 ``Tax Relief And 
#FixTheTrustFund For Infrastructure Certainty Act of 2015'' or the 
``TRAFFIC Relief Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                          TITLE I--FUEL TAXES

Sec. 101. Increase in tax on gasoline.
Sec. 102. Increase in tax on diesel fuel and kerosene.
Sec. 103. Allocation in accounts in highway trust fund.
Sec. 104. Floor stocks taxes.
               TITLE II--TAX RELIEF FOR WORKING FAMILIES

Sec. 201. Permanent extension of and modifications to the child tax 
                            credit.
Sec. 202. Permanent extension of modifications to earned income tax 
                            credit.
Sec. 203. Strengthening the earned income tax credit.
Sec. 204. Simplifying the earned income tax credit.

                          TITLE I--FUEL TAXES

SEC. 101. INCREASE IN TAX ON GASOLINE.

    (a) Phased-In Increase.--
            (1) In general.--Clause (i) of section 4081(a)(2)(A) of the 
        Internal Revenue Code of 1986 is amended by striking ``aviation 
        gasoline,'' and all that follows and inserting ``aviation 
        gasoline--
                                    ``(I) 22.3 cents per gallon in the 
                                case of gasoline removed, entered, or 
                                sold in calendar year 2016,
                                    ``(II) 26.3 cents per gallon in the 
                                case of gasoline removed, entered, or 
                                sold in calendar year 2017,
                                    ``(III) 30.3 cents per gallon in 
                                the case of gasoline removed, entered, 
                                or sold in calendar year 2018, and
                                    ``(IV) 34.3 cents per gallon in the 
                                case of gasoline removed, entered, or 
                                sold in calendar years beginning after 
                                December 31, 2018,''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to gasoline removed, entered, or sold on or after 
        the first day of the first calendar quarter beginning not less 
        than 60 days after the date of the enactment of this Act.
    (b) Adjustment for Inflation.--
            (1) In general.--Paragraph (2) of section 4081(a) of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new subparagraph:
                    ``(E) Adjustment for inflation.--
                            ``(i) In general.--In the case of gasoline 
                        removed, entered, or sold in a calendar year 
                        after 2019, the 34.3 cents amount in 
                        subparagraph (A)(i)(IV) shall be increased by 
                        an amount equal to--
                                    ``(I) such cents amount, multiplied 
                                by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for such calendar year by 
                                substituting `calendar year 2018' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                            ``(ii) Rounding.--If the amount as 
                        increased under clause (i) is not a multiple of 
                        0.1 cents, such amount shall be rounded to the 
                        nearest multiple of 0.1 cents.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to gasoline removed, entered, or sold after 
        December 31, 2018.
    (c) Conforming Amendment Relating to Tax on Compressed Natural 
Gas.--
            (1) In general.--The second sentence of subparagraph (A) of 
        section 4041(a)(3) of the Internal Revenue Code of 1986 is 
        amended by striking ``18.3 cents'' and inserting ``equal to the 
        rate of tax in effect under section 4081(a)(2)(A)(i) for the 
        calendar year in which such gas is sold or used,''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to compressed natural gas sold or used on or after 
        the first day of the first calendar quarter beginning not less 
        than 60 days after the date of the enactment of this Act.
    (d) Conforming Amendment Relating to Tax on Methanol and Ethanol.--
            (1) In general.--Paragraph (1) of section 4041(m) of the 
        Internal Revenue Code of 1986 is amended by striking ``shall 
        be--'' and all that follows and inserting ``shall be equal to 
        61.7 percent of the rate of tax in effect under section 
        4081(a)(2)(A)(i) for the calendar year in which such fuel is 
        sold or used.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to methanol and ethanol fuel sold or used on or 
        after the first day of the first calendar quarter beginning not 
        less than 60 days after the date of the enactment of this Act.

SEC. 102. INCREASE IN TAX ON DIESEL FUEL AND KEROSENE.

    (a) In General.--Clause (iii) of section 4081(a)(2)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``kerosene'' and 
all that follows and inserting ``kerosene--
                                    ``(I) 28.3 cents per gallon in the 
                                case of diesel fuel or kerosene 
                                removed, entered, or sold in calendar 
                                year 2016,
                                    ``(II) 32.3 cents per gallon in the 
                                case of diesel fuel or kerosene 
                                removed, entered, or sold in calendar 
                                year 2017,
                                    ``(III) 36.3 cents per gallon in 
                                the case of diesel fuel or kerosene 
                                removed, entered, or sold in calendar 
                                year 2018, and
                                    ``(IV) 40.3 cents per gallon in the 
                                case of diesel fuel or kerosene 
                                removed, entered, or sold in calendar 
                                years beginning after December 31, 
                                2018,''.
    (b) Adjustment for Inflation.--Subparagraph (E) of section 
4081(a)(2) of the Internal Revenue Code of 1986, as added by this 
title, is amended--
            (1) by redesignating clause (ii) as clause (iii),
            (2) by striking ``If the amount as increased under clause 
        (i)'' in clause (iii), as so redesignated, and inserting ``If 
        any amount as increased under clause (i) or (ii)'',
            (3) by striking ``In general'' in the heading of clause (i) 
        and inserting ``Tax on gasoline'', and
            (4) by inserting after clause (i) the following new clause:
                            ``(ii) Tax on diesel fuel or kerosene.--In 
                        the case of diesel fuel or kerosene removed, 
                        entered, or sold in a calendar year after 2019, 
                        the 40.3 cents amount in subparagraph 
                        (A)(iii)(IV) shall be increased by an amount 
                        equal to--
                                    ``(I) such cents amount, multiplied 
                                by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for such calendar year by 
                                substituting `calendar year 2018' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.''.
    (c) Conforming Amendment Relating to Tax on Diesel-Water Fuel 
Emulsions.--Subparagraph (D) of section 4081(a)(2) of the Internal 
Revenue Code of 1986 is amended by striking ``subparagraph (A)(iii) 
shall be applied by substituting `19.7 cents' for `24.3 cents''' and 
inserting ``the rate of tax shall be equal to 81 percent of the rate of 
tax in effect under subparagraph (A)(iii) for the calendar year in 
which such emulsion is removed, entered, or sold''.
    (d) Conforming Amendment Relating to Tax on Certain Alternative 
Fuels.--Clause (ii) of section 4041(a)(2)(B) of the Internal Revenue 
Code of 1986 is amended by striking ``24.3 cents per gallon'' and 
inserting ``the rate of tax specified in section 4081(a)(2)(A)(iii) 
which is in effect at the time of such sale or use''.
    (e) Conforming Amendment Relating to Rate of Tax on Buses.--
            (1) In general.--Subparagraph (A) of section 6427(b)(2) of 
        the Internal Revenue Code of 1986 is amended by striking ``7.4 
        cents per gallon less'' and all that follows and inserting 
        ``the aggregate rate at which tax was imposed on such fuel by 
        section 4041(a) or 4081, as the case may be, reduced by the 
        amount determined under subparagraph (E).''.
            (2) Amount determined.--Paragraph (2) of section 6427(b) of 
        such Code is amended by adding at the end the following new 
        subparagraph:
                    ``(E) Amount determined.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), the amount determined under 
                        this paragraph is--
                                    ``(I) 8.62 cents per gallon in the 
                                case of fuel used in calendar year 
                                2016,
                                    ``(II) 9.84 cents per gallon in the 
                                case of fuel used in calendar year 
                                2017,
                                    ``(III) 11.05 cents per gallon in 
                                the case of fuel used in calendar year 
                                2018, and
                                    ``(IV) 12.27 cents per gallon in 
                                the case of fuel used in calendar years 
                                beginning after December 31, 2018.
                            ``(ii) Adjustment for inflation.--In the 
                        case of fuel used in a calendar year after 
                        2019, the 12.27 cents amount in clause (i)(IV) 
                        shall be increased by an amount equal to--
                                    ``(I) such cents amount, multiplied 
                                by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for such calendar year by 
                                substituting `calendar year 2018' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to diesel fuel, kerosene, and diesel-water fuel emulsions 
removed, entered, or sold on or after the first day of the first 
calendar quarter beginning not less than 60 days after the date of the 
enactment of this Act.

SEC. 103. ALLOCATION IN ACCOUNTS IN HIGHWAY TRUST FUND.

    (a) In General.--Paragraph (2) of section 9503(e) of the Internal 
Revenue Code of 1986 is amended by striking subparagraphs (A) through 
(E) and inserting the following new subparagraphs:
                    ``(A) except as otherwise provided in this 
                sentence--
                            ``(i) 2.86 cents per gallon with respect to 
                        taxes imposed during calendar year 2015,
                            ``(ii) 3.66 cents per gallon with respect 
                        to taxes imposed during calendar year 2016,
                            ``(iii) 4.46 cents per gallon with respect 
                        to taxes imposed during calendar year 2017,
                            ``(iv) 5.26 cents per gallon with respect 
                        to taxes imposed during calendar year 2018, and
                            ``(v) 6.06 cents per gallon with respect to 
                        taxes imposed during any calendar year after 
                        2018,
                    ``(B) in the case of any partially exempt methanol 
                or ethanol fuel (as defined in section 4041(m)) none of 
                the alcohol in which consists of ethanol--
                            ``(i) 1.43 cents per gallon with respect to 
                        taxes imposed during calendar year 2015,
                            ``(ii) 1.92 cents per gallon with respect 
                        to taxes imposed during calendar year 2016,
                            ``(iii) 2.42 cents per gallon with respect 
                        to taxes imposed during calendar year 2017,
                            ``(iv) 2.91 cents per gallon with respect 
                        to taxes imposed during calendar year 2018, and
                            ``(v) 3.40 cents per gallon with respect to 
                        taxes imposed during any calendar year after 
                        2018,
                    ``(C) in the case of liquefied natural gas--
                            ``(i) 1.86 cents per gallon with respect to 
                        taxes imposed during calendar year 2015,
                            ``(ii) 2.66 cents per gallon with respect 
                        to taxes imposed during calendar year 2016,
                            ``(iii) 3.46 cents per gallon with respect 
                        to taxes imposed during calendar year 2017,
                            ``(iv) 4.26 cents per gallon with respect 
                        to taxes imposed during calendar year 2018, and
                            ``(v) 5.06 cents per gallon with respect to 
                        taxes imposed during any calendar year after 
                        2018,
                    ``(D) in the case of liquefied petroleum gas--
                            ``(i) 2.13 cents per gallon with respect to 
                        taxes imposed during calendar year 2015,
                            ``(ii) 2.93 cents per gallon with respect 
                        to taxes imposed during calendar year 2016,
                            ``(iii) 3.73 cents per gallon with respect 
                        to taxes imposed during calendar year 2017,
                            ``(iv) 4.53 cents per gallon with respect 
                        to taxes imposed during calendar year 2018, and
                            ``(v) 5.33 cents per gallon with respect to 
                        taxes imposed during any calendar year after 
                        2018, and
                    ``(E) in the case of compressed natural gas--
                            ``(i) 9.71 cents per MCF (determined at 
                        standard temperature and pressure) with respect 
                        to taxes imposed during calendar year 2015,
                            ``(ii) 10.51 cents per MCF (determined at 
                        standard temperature and pressure) with respect 
                        to taxes imposed during calendar year 2016,
                            ``(iii) 11.31 cents per MCF (determined at 
                        standard temperature and pressure) with respect 
                        to taxes imposed during calendar year 2017,
                            ``(iv) 12.11 cents per MCF (determined at 
                        standard temperature and pressure) with respect 
                        to taxes imposed during calendar year 2018, and
                            ``(v) 12.91 cents per MCF (determined at 
                        standard temperature and pressure) with respect 
                        to taxes imposed during any calendar year after 
                        2018.''.
    (b) Adjustment for Inflation.--Section 9503(e) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(6) Adjustment for inflation.--
                    ``(A) In general.--In the case of any calendar year 
                beginning after 2019, the amounts specified in 
                subparagraphs (A)(v), (B)(v), (C)(v), (D)(v), and 
                (E)(v) of paragraph (2) shall each be increased by an 
                amount equal to--
                            ``(i) such amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for such 
                        calendar year by substituting `calendar year 
                        2018' for `calendar year 1992' in subparagraph 
                        (B) thereof.
                    ``(B) Rounding.--Any increase under subparagraph 
                (A) shall be rounded to the nearest 0.1 cents.''.

SEC. 104. FLOOR STOCKS TAXES.

    (a) Imposition of Tax.--In the case of any taxable fuel which is 
held on the floor stocks tax date by any person, there is hereby 
imposed a floor stocks tax equal to the excess of the tax which would 
be imposed on such fuel under section 4041 or 4081 of the Internal 
Revenue Code of 1986 had the taxable event occurred on the floor stocks 
tax date over the tax paid under any such section on such fuel.
    (b) Liability for Tax and Method of Payment.--
            (1) Liability for tax.--A person holding a fuel on the 
        floor stocks tax date to which the tax imposed by subsection 
        (a) applies shall be liable for such tax.
            (2) Method of payment.--The tax imposed by subsection (a) 
        shall be paid in such manner as the Secretary shall prescribe.
            (3) Time of payment.--The tax imposed by subsection (a) 
        shall be paid on or before the date which is 6 months after the 
        floor stocks tax date.
    (c) Definitions.--For purposes of this section--
            (1) Held by a person.--A fuel shall be considered as held 
        by a person if title thereto has passed to such person (whether 
        or not delivery to the person has been made).
            (2) Taxable fuel.--The term ``taxable fuel'' means--
                    (A) gasoline (other than aviation gasoline), diesel 
                fuel, kerosene (other than aviation-grade kerosene), 
                and diesel-water fuel emulsions;
                    (B) fuel taxed under section 4041(a)(2) of the 
                Internal Revenue Code of 1986 (including methanol and 
                ethanol to which section 4041(m) of such Code applies); 
                and
                    (C) compressed natural gas.
            (3) Floor stocks date.--The term ``floor stocks tax date'' 
        means January 1 of any calendar year beginning after the date 
        of the enactment of this Act on which a rate of tax under 
        section 4041 or 4081 of such Code increases pursuant to an 
        amendment made by section 101 or 102.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
    (d) Exception for Exempt Uses.--The tax imposed by subsection (a) 
shall not apply to taxable fuel held by any person exclusively for any 
use to the extent a credit or refund of the tax imposed by a section of 
such Code is allowable for such use.
    (e) Exception for Fuel Held in Vehicle Tank.--No tax shall be 
imposed by subsection (a) on taxable fuel held in the tank of a motor 
vehicle or motorboat.
    (f) Exception for Certain Amounts of Fuel.--
            (1) In general.--No tax shall be imposed by subsection (a) 
        on any fuel held on the floor stocks tax date by any person if 
        the aggregate amount of fuel held by such person on such date 
        does not exceed 2,000 gallons. The preceding sentence shall 
        apply only if such person submits to the Secretary (at the time 
        and in the manner required by the Secretary) such information 
        as the Secretary shall require for purposes of this paragraph.
            (2) Exempt fuel.--For purposes of paragraph (1), there 
        shall not be taken into account fuel held by any person which 
        is exempt from the tax imposed by subsection (a) by reason of 
        subsection (d) or (e).
            (3) Controlled groups.--For purposes of this section--
                    (A) Corporations.--
                            (i) In general.--All persons treated as a 
                        controlled group shall be treated as 1 person.
                            (ii) Controlled group.--The term 
                        ``controlled group'' has the meaning given to 
                        such term by subsection (a) of section 1563 of 
                        such Code; except that for such purposes the 
                        phrase ``more than 50 percent'' shall be 
                        substituted for the phrase ``at least 80 
                        percent'' each place it appears in such 
                        subsection.
                    (B) Nonincorporated persons under common control.--
                Under regulations prescribed by the Secretary, 
                principles similar to the principles of clause (i) 
                shall apply to a group of persons under common control 
                where one or more of such persons is not a corporation.
    (g) Other Laws Applicable.--All provisions of law, including 
penalties, applicable with respect to the taxes imposed by chapter 31 
or 32 of such Code shall, insofar as applicable and not inconsistent 
with the provisions of this section, apply with respect to the floor 
stock taxes imposed by subsection (a) to the same extent as if such 
taxes were imposed by such chapter.

               TITLE II--TAX RELIEF FOR WORKING FAMILIES

SEC. 201. PERMANENT EXTENSION OF AND MODIFICATIONS TO THE CHILD TAX 
              CREDIT.

    (a) Permanent Extension of Increase in Refundable Portion.--
            (1) In general.--Clause (i) of section 24(d)(1)(B) of the 
        Internal Revenue Code of 1986 is amended by striking 
        ``$10,000'' and inserting ``$3,000''.
            (2) Conforming amendment.--Subsection (d) of section 24 of 
        such Code is amended by striking paragraph (4).
            (3) Elimination of inflation adjustment.--Subsection (d) of 
        section 24 of such Code is amended by striking paragraph (3).
    (b) Inflation Adjustments.--Section 24 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new subsection:
    ``(g) Inflation Adjustments.--
            ``(1) In general.--In the case of any taxable year 
        beginning in a calendar year after 2014, the $1,000 amount in 
        subsection (a) and each of the dollar amounts in subsection 
        (b)(2) shall each be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2011' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--Any increase determined under the 
        preceding sentence shall be rounded to the nearest multiple of 
        $50.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 202. PERMANENT EXTENSION OF MODIFICATIONS TO EARNED INCOME TAX 
              CREDIT.

    (a) Increase in Credit Percentage for Families With 3 or More 
Children.--Paragraph (1) of section 32(b) of the Internal Revenue Code 
of 1986 is amended--
            (1) by striking ``The credit'' and inserting the following:
                    ``(A) In general.--The credit'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Increased credit percentage for families with 
                3 or more qualifying children.--In the case of an 
                eligible individual with 3 or more qualifying children, 
                the table in subparagraph (A) shall be applied by 
                substituting `45' for `40' in the second column 
                thereof.''.
    (b) Joint Returns.--
            (1) In general.--Subparagraph (B) of section 32(b)(2) of 
        the Internal Revenue Code of 1986 is amended by striking 
        ``$3,000'' and inserting ``$5,000.''.
            (2) Inflation adjustments.--Clause (ii) of section 
        32(j)(1)(B) of such Code is amended--
                    (A) by striking ``$3,000'' and inserting 
                ``$5,000'',
                    (B) by striking ``subsection (b)(2)(B)(iii)'' and 
                inserting ``subsection (b)(2)(B)'', and
                    (C) by striking ``calendar year 2007'' and 
                inserting ``calendar year 2008''.
    (c) Conforming Amendment.--Section 32(b)of such Code is amended by 
striking paragraph (3).
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 203. STRENGTHENING THE EARNED INCOME TAX CREDIT.

    (a) Increased Credit for Individuals With No Qualifying Children.--
            (1) In general.--The table in subparagraph (A) of section 
        32(b)(2) of the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``$4,220'' in the second column and 
                inserting ``$8,820'', and
                    (B) by striking ``$5,280'' in the last column and 
                inserting ``$10,425''.
            (2) Inflation adjustments.--Subparagraph (B) of section 
        32(j)(1) of the Internal Revenue Code of 1986, as amended by 
        this Act, is amended--
                    (A) in clause (i)--
                            (i) by inserting ``(except as provided in 
                        clause (iii))'' after ``(b)(2)(A)'', and
                            (ii) by striking ``and'' at the end, and
                    (B) by adding at the end the following new clause:
                            ``(iii) in the case of the $8,820 and 
                        $10,4250 amount in the table in subsection 
                        (b)(2)(A), by substituting `calendar year 2011' 
                        for `calendar year 1992' in subparagraph (B) of 
                        such section 1.''.
    (b) Credit Increase and Reduction in Phaseout for Individuals With 
No Children.--The table contained in section 32(b)(1)(A) of the 
Internal Revenue Code of 1986, as amended by this Act, is amended--
            (1) by striking ``7.65'' in the second column of the third 
        row and inserting ``15.3'', and
            (2) by striking ``7.65'' in the third column of the third 
        row and inserting ``15.3''.
    (c) Credit Allowed for Certain Childless Individuals Over Age 21.--
Subclause (II) of section 32(c)(1)(A)(ii) of the Internal Revenue Code 
of 1986 is amended by striking ``age 25'' and inserting ``age 21''.
    (d) Effective Dates.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 204. SIMPLIFYING THE EARNED INCOME TAX CREDIT.

    (a) Modification of Abandoned Spouse Rule.--
            (1) In general.--Section 32(c)(1) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
                    ``(G) Certain married individuals living apart.--
                For purposes of this section, an individual who--
                            ``(i) is married (within the meaning of 
                        section 7703(a)) and files a separate return 
                        for the taxable year,
                            ``(ii) lives with a qualifying child of the 
                        individual for more than one-half of such 
                        taxable year, and
                            ``(iii)(I) during the last 6 months of such 
                        taxable year, does not have the same principal 
                        place of abode as the individual's spouse, or
                            ``(II) has a legally binding separation 
                        agreement with the individual's spouse and is 
                        not a member of the same household with the 
                        individual's spouse by the end of the taxable 
                        year,
                shall not be considered as married.''.
            (2) Conforming amendments.--
                    (A) The last sentence of section 32(c)(1)(A) of the 
                Internal Revenue Code of 1986 is amended by striking 
                ``section 7703'' and inserting ``section 7703(a)''.
                    (B) Section 32(d) of such Code is amended by 
                striking ``In the case of an individual who is married 
                (within the meaning of section 7703)'' and inserting 
                ``In the case of an individual who is married (within 
                the meaning of section 7703(a)) and is not described in 
                subsection (c)(1)(G)''.
    (b) Elimination of Disqualified Investment Income Test.--
            (1) In general.--Section 32 of the Internal Revenue Code of 
        1986 is amended by striking subsection (i).
            (2) Conforming amendments.--
                    (A) Section 32(j)(1)(B)(i) of such Code, as amended 
                by this Act, is amended--
                            (i) by striking ``subsections'' and 
                        inserting ``subsection'', and
                            (ii) by striking ``and (i)(1)''.
                    (B) Section 32(j)(2) of such Code is amended to 
                read as follows:
            ``(2) Rounding.--If any dollar amount in subsection 
        (b)(2)(A) (after being increased under subparagraph (B) 
        thereof), after being increased under paragraph (1), is not a 
        multiple of $10, such amount shall be rounded to the next 
        nearest multiple of $10.''.
    (c) Simplification of Rules Regarding Presence of Qualifying 
Child.--
            (1) Taxpayer eligible for credit for worker without 
        qualifying child if qualifying child claimed by another member 
        of family.--Section 32(c)(1) of the Internal Revenue Code of 
        1986, as amended by this Act, is amended by adding at the end 
        the following new paragraph:
                    ``(H) Taxpayer eligible for credit for worker 
                without qualifying child if qualifying child claimed by 
                another member of family.--
                            ``(i) General rule.--Except as provided in 
                        clause (ii), in the case of 2 or more eligible 
                        individuals who may claim for such taxable year 
                        the same individual as a qualifying child, if 
                        such individual is claimed as a qualifying 
                        child by such an eligible individual, then any 
                        other such eligible individual who does not 
                        make such a claim of such child or of any other 
                        qualifying child may be considered an eligible 
                        individual without a qualifying child for 
                        purposes of the credit allowed under this 
                        section for such taxable year.
                            ``(ii) Exception if qualifying child 
                        claimed by parent.--If an individual is claimed 
                        as a qualifying child for any taxable year by 
                        an eligible individual who is a parent of such 
                        child, then no other custodial parent of such 
                        child who does not make such a claim of such 
                        child may be considered an eligible individual 
                        without a qualifying child for purposes of the 
                        credit allowed under this section for such 
                        taxable year.''.
            (2) Taxpayer eligible for credit for worker without 
        qualifying child if qualifying children do not have valid 
        social security number.--Subparagraph (F) of section 32(c)(1) 
        of the Internal Revenue Code of 1986 is amended to read as 
        follows:
                    ``(F) Individuals who do not include tin, etc., of 
                any qualifying child.--In the case of any eligible 
                individual who has one or more qualifying children, if 
                no qualifying child of such individual is taken into 
                account under subsection (b) by reason of paragraph 
                (3)(D), for purposes of the credit allowed under this 
                section, such individual may be considered an eligible 
                individual without a qualifying child.''.
    (d) Effective Dates.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.
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