[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Pages S7618-S7620]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1772. Mr. BENNET submitted an amendment intended to be proposed to
amendment SA 1618 proposed by Mr.
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McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill
H.R. 1, to provide for reconciliation pursuant to titles II and V of
the concurrent resolution on the budget for fiscal year 2018; which was
ordered to lie on the table; as follows:
At the appropriate place in title I, insert the following:
SEC. __. ESTABLISHMENT OF FULLY REFUNDABLE CHILD TAX CREDIT.
(a) Elimination of Existing Child Tax Credit.--Subpart A of
part IV of subchapter A of chapter 1 of subtitle A of the
Internal Revenue Code of 1986 is amended by striking section
24.
(b) Establishment of Fully Refundable Child Tax Credit.--
Subpart C of part IV of subchapter A of chapter 1 of subtitle
A of such Code is amended by inserting after section 36B the
following new section:
``SEC. 36C. CHILD TAX CREDIT.
``(a) Allowance of Credit.--There shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of--
``(1) with respect to each qualifying child of the taxpayer
who has attained 6 years of age before the close of such
taxable year and for which the taxpayer is allowed a
deduction under section 151, an amount equal to $3,000, and
``(2) with respect to each qualifying child of the taxpayer
who has not attained 6 years of age before the close of such
taxable year and for which the taxpayer is allowed a
deduction under section 151, an amount equal to 120 percent
of the dollar amount in paragraph (1).
``(b) Limitation.--
``(1) In general.--The amount of the credit allowable under
subsection (a) shall be reduced (but not below zero) by the
applicable amount for each $1,000 (or fraction thereof) by
which the taxpayer's modified adjusted gross income exceeds
the threshold amount. For purposes of the preceding sentence,
the term `modified adjusted gross income' means adjusted
gross income increased by any amount excluded from gross
income under section 911, 931, or 933.
``(2) Threshold amount.--
``(A) In general.--For purposes of paragraph (1), the term
`threshold amount' means--
``(i) $110,000 in the case of a joint return,
``(ii) $75,000 in the case of an individual who is not
married, and
``(iii) $55,000 in the case of a married individual filing
a separate return.
``(B) Marital status.--For purposes of this paragraph,
marital status shall be determined under section 7703.
``(3) Applicable amount.--For purposes of paragraph (1),
the term `applicable amount' means an amount equal to the
quotient of--
``(A) the amount of the credit allowable under subsection
(a), as determined without regard to this subsection, divided
by
``(B) an amount equal to the product of--
``(i) $20, multiplied by
``(ii) the total number of qualifying children of the
taxpayer.
``(c) Qualifying Child.--
``(1) In general.--In this section, the term `qualifying
child' means a qualifying child of the taxpayer (as defined
in section 152(c)) who has not attained 19 years of age.
``(2) Exception for certain non-citizens.--The term
`qualifying child' shall not include any individual who would
not be a dependent if subparagraph (A) of section 152(b)(3)
were applied without regard to all that follows `resident of
the United States'.
``(d) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2017, the $3,000 amount in subsection (a)(1)
shall 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 2016'
for `calendar year 1992' in subparagraph (B) thereof.
``(2) Rounding.--If any increase determined under paragraph
(1) is not a multiple of $50, such increase shall be rounded
to the nearest multiple of $50.
``(e) Identification Requirements.--
``(1) Qualifying child identification requirement.--No
credit shall be allowed under this section to a taxpayer with
respect to any qualifying child unless the taxpayer includes
the name and taxpayer identification number of such
qualifying child on the return of tax for the taxable year
and such taxpayer identification number was issued on or
before the due date for filing such return.
``(2) Taxpayer identification requirement.--No credit shall
be allowed under this section if the identifying number of
the taxpayer was issued after the due date for filing the
return for the taxable year.
``(f) Taxable Year Must Be Full Taxable Year.--Except in
the case of a taxable year closed by reason of the death of
the taxpayer, no credit shall be allowable under this section
in the case of a taxable year covering a period of less than
12 months.
``(g) Restrictions on Taxpayers Who Improperly Claimed
Credit in Prior Year.--
``(1) Taxpayers making prior fraudulent or reckless
claims.--
``(A) In general.--No credit shall be allowed under this
section for any taxable year in the disallowance period.
``(B) Disallowance period.--For purposes of subparagraph
(A), the disallowance period is--
``(i) the period of 10 taxable years after the most recent
taxable year for which there was a final determination that
the taxpayer's claim of credit under this section was due to
fraud, and
``(ii) the period of 2 taxable years after the most recent
taxable year for which there was a final determination that
the taxpayer's claim of credit under this section was due to
reckless or intentional disregard of rules and regulations
(but not due to fraud).
``(2) Taxpayers making improper prior claims.--In the case
of a taxpayer who is denied credit under this section for any
taxable year as a result of the deficiency procedures under
subchapter B of chapter 63, no credit shall be allowed under
this section for any subsequent taxable year unless the
taxpayer provides such information as the Secretary may
require to demonstrate eligibility for such credit.
``(h) Reconciliation of Credit and Advance Credit.--
``(1) In general.--The amount of the credit allowed under
this section for any taxable year shall be reduced (but not
below zero) by the aggregate amount of any advance payments
of such credit under section 7527A for such taxable year.
``(2) Excess advance payments.--If the aggregate amount of
advance payments under section 7527A for the taxable year
exceed the amount of the credit allowed under this section
for such taxable year (determined without regard to paragraph
(1)), the tax imposed by this chapter for such taxable year
shall be increased by the amount of such excess''.
(c) Advance Payment of Credit.--Chapter 77 of the Internal
Revenue Code of 1986 is amended by inserting after section
7527 the following new section:
``SEC. 7527A. ADVANCE PAYMENT OF CHILD TAX CREDIT.
``(a) In General.--As soon as practicable and not later
than 1 year after the date of the enactment of this section,
the Secretary shall establish a program for making advance
payments of the credit allowed under section 36C on a monthly
basis (determined without regard to subsection (h)(1) of such
section), or as frequently as the Secretary determines to be
administratively feasible, to taxpayers allowed such credit.
``(b) Limitation.--
``(1) In general.--The Secretary may make payments under
subsection (a) only to the extent that the total amount of
such payments made to any taxpayer during the taxable year
does not exceed an amount equal to the excess, if any, of--
``(A) subject to paragraph (2), the amount determined under
subsection (a) of section 36C with respect to such taxpayer
(determined without regard to subsection (h) of such section)
for such taxable year, over
``(B) the estimated tax imposed by subtitle A, as reduced
by the credits allowable under subparts A and C (with the
exception of section 36C) of such part IV, with respect to
such taxpayer for such taxable year, as determined in such
manner as the Secretary deems appropriate.
``(2) Application of threshold amount limitation.--The
program described in subsection (a) shall make reasonable
efforts to apply the limitation of section 36C(b) with
respect to payments made under such program.''.
(d) Conforming Amendments.--
(1) The table of sections for subpart A of part IV of
subchapter A of chapter 1 of subtitle A of the Internal
Revenue Code of 1986 is amended by striking the item relating
to section 24.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of subtitle A of such Code is
amended by inserting after the item relating to section 36B
the following:
``Sec. 36C. Child tax credit.''.
(3) The table of sections for chapter 77 of such Code is
amended by inserting after the item relating to section 7527
the following new item:
``Sec. 7527A. Advance payment of child tax credit.''.
(4) Subparagraph (B) of section 45R(f)(3) of such Code is
amended to read as follows:
``(B) Special rule.--Any amounts paid pursuant to an
agreement under section 3121(l) (relating to agreements
entered into by American employers with respect to foreign
affiliates) which are equivalent to the taxes referred to in
subparagraph (A) shall be treated as taxes referred to in
such subparagraph.''.
(5) Section 152(f)(6)(B)(ii) of such Code is amended by
striking ``section 24'' and inserting ``section 36C''.
(6) Paragraph (26) of section 501(c) of such Code is
amended in the flush matter at the end by striking ``section
24(c))'' and inserting ``section 36C(c)) who has not attained
17 years of age''.
(7) Section 6211(b)(4)(A) of such Code is amended--
(A) by striking ``24(d),'', and
(B) by inserting ``36C,'' after ``36B,''.
(8) Section 6213(g)(2) of such Code is amended--
(A) in subparagraph (I), by striking ``section 24(e)'' and
inserting ``section 36C(e)'', and
(B) in subparagraph (L), by striking ``24, or 32'' and
inserting ``32, or 36C''.
(9) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``36C,'' after ``36B,''.
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(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2016.
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