[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 686 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                 S. 686

 To amend the Internal Revenue Code of 1986 to provide a limitation on 
       certain aliens from claiming the earned income tax credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 10, 2015

Mr. Grassley (for himself, Mr. Enzi, Mr. Crapo, Mr. Inhofe, Mr. Perdue, 
   Mr. Scott, Mr. Roberts, Mr. Isakson, Mr. Risch, Mr. Boozman, Mr. 
Cornyn, and Mr. Johnson) 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 provide a limitation on 
       certain aliens from claiming the earned income tax credit.

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

SECTION 1. LIMITATION ON CERTAIN ALIENS CLAIMING EARNED INCOME TAX 
              CREDIT.

    (a) In General.--Paragraph (1) of section 32(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(G) Prohibition on retroactive credit for certain 
                immigrants.--
                            ``(i) In general.--In the case of any alien 
                        described in clause (iii), no credit shall be 
                        allowed under this section for the taxable year 
                        in which such alien was granted deferred action 
                        described in such clause or for any taxable 
                        year prior to such year unless such alien--
                                    ``(I) was an eligible individual 
                                for the taxable year, and
                                    ``(II) was authorized to engage in 
                                employment in the United States for the 
                                entire taxable year.
                            ``(ii) Married individuals.--In the case of 
                        an eligible individual who is married (within 
                        the meaning of section 7703) to an alien 
                        described in clause (iii), no credit shall be 
                        allowed under this section for any taxable 
                        year--
                                    ``(I) in which such alien was 
                                married (within the meaning of section 
                                7703) to the eligible individual, and
                                    ``(II) which includes or was prior 
                                to the date on which such alien was 
                                granted deferred action described in 
                                such clause,
                        unless such alien was authorized to engage in 
                        employment in the United States for the entire 
                        taxable year.
                            ``(iii) Alien described.--An alien is 
                        described in this clause if such alien is 
                        granted deferred action pursuant to the 
                        memorandum from the Secretary of Homeland 
                        Security entitled `Exercising Prosecutorial 
                        Discretion with Respect to Individuals Who Came 
                        to the United States as Children and with 
                        Respect to Certain Individuals Who Are the 
                        Parents of U.S. Citizens or Permanent 
                        Residents' dated November 20, 2014 (or any 
                        substantially similar policy changes issued or 
                        taken on or after the date of the enactment of 
                        this clause, whether set forth in memorandum, 
                        Executive order, regulation, directive, or by 
                        other action).''.
    (b) Qualifying Children.--Subparagraph (D) of section 32(c)(3) of 
the Internal Revenue Code of 1986 is amended by redesignating clause 
(ii) as clause (iii) and by inserting after clause (i) the following 
new clause:
                            ``(ii) Prior years.--In the case of an 
                        alien described in paragraph (1)(G)(iii), such 
                        alien shall not be taken into account as a 
                        qualifying child under subsection (b) for any 
                        taxable year in which such alien was granted 
                        deferred action described in such paragraph, or 
                        for any taxable year prior to such year, unless 
                        such alien was authorized to engage in 
                        employment in the United States for the taxable 
                        year.''.
    (c) Information Sharing.--
            (1) Commissioner of social security.--
                    (A) In general.--The Commissioner of Social 
                Security (referred to in this subsection as the 
                ``Commissioner'') shall provide to the Secretary of 
                Treasury (or the Secretary's delegate) the information 
                described in subparagraph (B) with respect to any alien 
                who--
                            (i) is granted deferred action pursuant to 
                        the memorandum from the Secretary of Homeland 
                        Security entitled ``Exercising Prosecutorial 
                        Discretion with Respect to Individuals Who Came 
                        to the United States as Children and with 
                        Respect to Certain Individuals Who Are the 
                        Parents of U.S. Citizens or Permanent 
                        Residents'' dated November 20, 2014 (or any 
                        substantially similar policy changes issued or 
                        taken on or after the date of the enactment of 
                        this clause, whether set forth in memorandum, 
                        Executive order, regulation, directive, or by 
                        other action); and
                            (ii) has been assigned a social security 
                        account number by the Commissioner.
                    (B) Information provided.--The information 
                described in this subparagraph is--
                            (i) the name and social security account 
                        number of any individual described in 
                        subparagraph (A);
                            (ii) the date such social security account 
                        number was issued by the Commissioner; and
                            (iii) such other information as determined 
                        by the Commissioner, in consultation with the 
                        Secretary of the Treasury, to be necessary to 
                        carry out the amendments made by subsections 
                        (a) and (b).
            (2) Secretary of homeland security.--The Secretary of 
        Homeland Security shall provide to the Commissioner of Social 
        Security such information as is necessary to assist the 
        Commissioner in carrying out the requirements of paragraph (1).
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.
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