[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3812 Introduced in House (IH)]
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115th CONGRESS
1st Session
H. R. 3812
To amend the Internal Revenue Code of 1986 to modify the determination
of earned income for purposes of the earned income credit and the child
tax credit for individuals in the Hurricane Harvey and Hurricane Irma
disaster areas.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 21, 2017
Mr. Doggett (for himself, Mr. Al Green of Texas, Mr. Gene Green of
Texas, Ms. Jackson Lee, Mr. Gonzalez of Texas, Mr. Vela, Mr. O'Rourke,
Mr. Cuellar, Mr. Castro of Texas, Ms. Eddie Bernice Johnson of Texas,
Mr. Veasey, Mrs. Demings, Ms. Frankel of Florida, Mr. Hastings, Ms.
Wilson of Florida, Mr. Johnson of Georgia, Mr. Lewis of Georgia, Mr.
Clyburn, Mr. Bishop of Georgia, Ms. Plaskett, Mr. Soto, Mr. Crist, Mr.
Lawson of Florida, Ms. Castor of Florida, Ms. Wasserman Schultz, Mr.
Deutch, Mrs. Murphy of Florida, Mr. David Scott of Georgia, Ms. Sewell
of Alabama, Ms. DeLauro, Mr. Neal, Mr. Thompson of California, Mr.
Larson of Connecticut, Mr. Blumenauer, Mr. Danny K. Davis of Illinois,
Ms. Sanchez, Ms. Judy Chu of California, Ms. Lee, and Ms. DelBene)
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 modify the determination
of earned income for purposes of the earned income credit and the child
tax credit for individuals in the Hurricane Harvey and Hurricane Irma
disaster areas.
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 ``Hurricane Harvey and Hurricane Irma
Working Family Tax Relief Act''.
SEC. 2. DETERMINATION OF EARNED INCOME FOR PURPOSES OF THE EARNED
INCOME CREDIT AND THE CHILD TAX CREDIT FOR INDIVIDUALS IN
THE HURRICANE HARVEY AND HURRICANE IRMA DISASTER AREAS.
(a) Earned Income Credit.--Section 32 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new subsection:
``(n) Special Rule Relating to Hurricane Harvey and Hurricane
Irma.--For purposes of this section and section 24(d)--
``(1) In general.--In the case of a qualified individual,
if the earned income of the taxpayer for the taxable year which
includes the applicable date is less than the earned income of
the taxpayer for the preceding taxable year, the credit allowed
under subsection (a) for the taxable year which includes the
applicable date may, at the election of the taxpayer, be
determined by substituting--
``(A) such earned income for the preceding taxable
year, for
``(B) such earned income for the taxable year which
includes the applicable date.
``(2) Qualified individual.--For purposes of this
subsection, the term `qualified individual' means any
individual--
``(A) whose principal place of abode on the
applicable date was located in the Hurricane Harvey
disaster area or the Hurricane Irma disaster area and
such individual was displaced from such principal place
of abode by reason of the Hurricane Harvey federally
declared disaster or the Hurricane Irma federally
declared disaster, respectively, or
``(B) who performed substantially all employment
services in the disaster area and was so employed on
the applicable date.
``(3) Other definitions.--For purposes of this subsection--
``(A) Applicable date.--The term `applicable date'
means--
``(i) August 25, 2017, with respect to
Hurricane Harvey, and
``(ii) September 5, 2017, with respect to
Hurricane Irma.
``(B) Hurricane harvey federally declared
disaster.--
``(i) In general.--The term `Hurricane
Harvey federally declared disaster' means the
disaster occurring by reason of Hurricane
Harvey and determined by the President to
warrant individual or individual and public
assistance from the Federal Government under
the Robert T. Stafford Disaster Relief and
Emergency Assistance Act.
``(ii) Hurricane harvey disaster area.--The
term `Hurricane Harvey disaster area' means the
area so determined to warrant such assistance.
``(C) Hurricane irma federally declared disaster.--
``(i) In general.--The term `Hurricane Irma
federally declared disaster' means the disaster
occurring by reason of Hurricane Irma and
determined by the President to warrant
individual or individual and public assistance
from the Federal Government under the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act.
``(ii) Hurricane irma disaster area.--The
term `Hurricane Irma disaster area' means the
area so determined to warrant such assistance.
``(4) Special rules.--
``(A) Application to joint returns.--For purposes
of paragraph (1), in the case of a joint return for a
taxable year which includes the applicable date--
``(i) such paragraph shall apply if either
spouse is a qualified individual, and
``(ii) the earned income of the taxpayer
for the preceding taxable year shall be the sum
of the earned income of each spouse for such
preceding taxable year.
``(B) Uniform application of election.--Any
election made under paragraph (1) shall apply with
respect to both this section and section 24(d).
``(C) Errors treated as mathematical error.--For
purposes of section 6213, an incorrect use on a return
of earned income pursuant to paragraph (1) shall be
treated as a mathematical or clerical error.
``(D) No effect on determination of gross income,
etc.--Except as otherwise provided in this subsection,
this title shall be applied without regard to any
substitution under paragraph (1).''.
(b) Child Tax Credit.--Subsection (d) of section 24 of such Code is
amended by adding at the end the following new paragraph:
``(6) Special rule relating to hurricane harvey and
hurricane irma.--See section 32(n) for determination of earned
income with respect to the Hurricane Harvey and Hurricane Irma
federally declared disasters.''.
(c) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possession.--The Secretary of the
Treasury shall pay to each possession of the United
States with a mirror code tax system amounts equal to
the loss to that possession by reason of the amendments
made by this section. Such amounts shall be determined
by the Secretary of the Treasury based on information
provided by the government of the respective
possession.
(B) Other possessions.--The Secretary of the
Treasury shall pay to each possession of the United
States which does not have a mirror code tax system
amounts estimated by the Secretary of the Treasury as
being equal to the aggregate benefits that would have
been provided to residents of such possession by reason
of the amendments made by this section if a mirror code
tax system had been in effect in such possession. The
preceding sentence shall not apply with respect to any
possession of the United States unless such possession
has a plan, which has been approved by the Secretary of
the Treasury, under which such possession will promptly
distribute such payments to the residents of such
possession.
(2) Coordination with credit allowed against united states
income taxes.--In the case of any person--
(A) to whom a credit is allowed against taxes
imposed by a possession of the United States by reason
of the amendments made by this section for any taxable
year, or
(B) who is eligible for a payment under a plan
described in paragraph (1)(B) with respect to any
taxable year,
any credit allowed under section 24 or 32 of the Internal
Revenue Code of 1986 to such person for such taxable year shall
be determined without regard to the amendments made by this
section.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes
of this subsection, the term ``possession of the United
States'' includes the Commonwealth of Puerto Rico and
the Commonwealth of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means,
with respect to any possession of the United States,
the income tax system of such possession if the income
tax liability of the residents of such possession under
such system is determined by reference to the income
tax laws of the United States as if such possession
were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the
payments under this subsection shall be treated in the
same manner as a refund due from a credit allowed under
section 24(d) or 32 of the Internal Revenue Code of
1986.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years ending after August 25, 2017.
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