[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Pages S4231-S4233]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5208. Mr. SANDERS (for himself and Mr. Merkley) proposed an 
amendment to amendment SA 5194 proposed by Mr. Schumer to the bill H.R. 
5376, to provide for reconciliation pursuant to title II of S. Con. 
Res. 14; which was ordered to lie on the table; as follows:

       At the end of title I, insert the following:

                      Subtitle E--Other Provisions

     SEC. 14001. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     subtitle an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Internal Revenue Code of 1986.

                        PART 1--CHILD TAX CREDIT

     SEC. 14101. EXTENSIONS AND MODIFICATIONS.

       (a) Extensions.--
       (1) Extension of child tax credit.--Section 24(i) is 
     amended--
       (A) by striking ``January 1, 2022'' in the matter preceding 
     paragraph (1) and inserting ``January 1, 2027'', and
       (B) by inserting ``and 2022'' after ``2021'' in the heading 
     thereof.
       (2) Extension of provisions related to possessions of the 
     united states.--
       (A) Section 24(k)(2)(B) is amended--
       (i) by striking ``December 31, 2021'' in the matter 
     preceding clause (i) and inserting ``December 31, 2026'', and
       (ii) by striking ``After 2021'' in the heading thereof and 
     inserting ``After 2026''.
       (B) Section 24(k)(3)(C)(ii) is amended--
       (i) in subclause (I), by striking ``in 2021'' and inserting 
     ``after December 31, 2020, and before January 1, 2027'' after 
     ``2021,'', and
       (ii) in subclause (II), by striking ``December 31, 2021'' 
     and inserting ``December 31, 2026''.
       (C) The heading of section 24(k)(2)(A) is amended by 
     inserting ``Through 2026'' after ``2021''.
       (b) Extension and Modification of Advance Payment.--
       (1) In general.--Section 7527A is amended--
       (A) in subsection (b)(1), by striking ``50 percent of'' and 
     inserting ``100 percent (25 percent in the case of calendar 
     year 2022) of'',
       (B) in clauses (i) and (ii) of subsection (e)(4)(C), by 
     striking ``in 2021'' and inserting ``after December 31, 2020, 
     and before January 1, 2027'', and
       (C) in subsection (f)--
       (i) in paragraph (1), by striking ``or'',
       (ii) in paragraph (2), by striking the period at the end 
     and inserting ``, or before October 1, 2022, or'', and
       (iii) by adding at the end the following new paragraph:

[[Page S4232]]

       ``(3) any period after December 31, 2026.''.
       (2) Annual advance amount.--Section 7527A(b) is amended--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by inserting ``or based on any 
     other information known to the Secretary'' after ``reference 
     taxable year'',
       (ii) in subparagraph (C), by inserting ``unless determined 
     by the Secretary based on any information known to the 
     Secretary,'' before ``the only children'', and
       (iii) in subparagraph (D), by inserting ``unless determined 
     by the Secretary based on any information known to the 
     Secretary,'' before ``the ages of'', and
       (B) in paragraph (3)(A)(ii), by striking `` provided by the 
     taxpayer'' and inserting ``provided, or known,''.
       (3) Monthly payments.--
       (A) In general.--Section 7527A(a) is amended to read as 
     follows:
       ``(a) In General.--The Secretary shall establish a program 
     for making monthly payments to taxpayers in amounts equal to 
     1/12 of the annual advance amount with respect to such 
     taxpayer.''.
       (B) Modifications during calendar year.--Section 
     7527A(b)(3), as amended by the preceding provisions of this 
     Act, is amended--
       (i) by amending subparagraph (A)(ii) to read as follows:
       ``(ii) any other information provided, or known, to the 
     Secretary which allows the Secretary to more accurately 
     estimate the amount treated as allowed under subpart C of 
     part IV of subchapter A of chapter 1 by reason of section 
     24(i)(1) with respect to the taxpayer for the reference 
     taxable year.'', and
       (ii) in subparagraph (B), by striking ``periodic payment'' 
     both places it appears and inserting ``monthly payment''.
       (C) Conforming amendment.--Section 7527A(c)(2) is amended 
     by striking ``subsection (b)(3)(B)'' and inserting 
     ``subsection (b)(3)''.
       (4) Eligibility for advance payments limited based on 
     modified adjusted gross income.--Section 7527A(b) is amended 
     by adding at the end the following new paragraph:
       ``(6) Limitation based on modified adjusted gross income.--
       ``(A) In general.--If the modified adjusted gross income of 
     the taxpayer for the reference taxable year exceeds the 
     applicable threshold amount with respect to such taxpayer (as 
     defined in section 24(i)(4)(B)), the annual advance amount 
     with respect to such taxpayer shall be zero.
       ``(B) Exception for modifications made during the calendar 
     year.--Subparagraph (A) shall not apply to a reference 
     taxable year taken into account by reason of paragraph 
     (3)(A)(i) or subsection (c) if the taxpayer received one or 
     more payments under subsection (a) for months in the calendar 
     year which precede the month for which such reference taxable 
     year will be taken into account.''.
       (5) Advance payments to puerto rico residents.--Section 
     7527A(e)(4) is amended--
       (A) in subparagraph (A), by striking ``The advance'' and 
     inserting ``Except as provided in subparagraph (D), the 
     advance'', and
       (B) by adding at the end the following new subparagraph:
       ``(D) Advance payments to puerto rico residents for certain 
     years.--For the period beginning on October 1, 2022, and 
     ending on December 31, 2022, the Secretary may apply this 
     section without regard to subparagraph (A)(i).''.
       (c) Election to Apply Income Phaseout on Basis of Income 
     From the Preceding Taxable Year.--Section 24(i) is amended by 
     adding at the end the following new paragraph:
       ``(5) Election to apply income phaseout on basis of income 
     from the preceding taxable year.--In the case of a taxpayer 
     who elects (at such time and in such manner as the Secretary 
     may provide) the application of this paragraph for any 
     taxable year, paragraph (4) and subsection (b)(1) shall both 
     be applied with respect to the modified adjusted gross income 
     (as defined in subsection (b)) for the taxpayer's preceding 
     taxable year.''.
       (d) Safe Harbor Exception for Fraud and Intentional 
     Disregard of Rules and Regulations.--
       (1) In general.--Section 24(j)(2)(B) is amended--
       (A) by striking ``qualified'' each place it appears in 
     clause (iv)(II) and inserting ``qualifying'', and
       (B) by adding at the end the following new clause:
       ``(v) Exception for fraud and intentional disregard of 
     rules and regulations.--

       ``(I) In general.--For purposes of determining the safe 
     harbor amount under clause (iv) with respect to any taxpayer, 
     an individual shall not be treated as taken into account in 
     determining the annual advance amount of such taxpayer if the 
     Secretary determines that such individual was so taken into 
     account due to fraud by the taxpayer or intentional disregard 
     of rules and regulations by the taxpayer.
       ``(II) Arrangements to take individual into account more 
     than once.--For purposes of subclause (I), a taxpayer shall 
     not fail to be treated as intentionally disregarding rules 
     and regulations with respect to any individual taken into 
     account in determining the annual advance amount of such 
     taxpayer if such taxpayer entered into a plan or other 
     arrangement with, or expected, another taxpayer to take such 
     individual into account in determining the credit allowed 
     under this section for the taxable year.''.

       (2) Additional modification.--Section 24(j)(2)(B)(iv), as 
     amended by the preceding provisions of this Act, is amended 
     to read as follows:
       ``(iv) Safe harbor amount.--For purposes of this 
     subparagraph, the term `safe harbor amount' means, with 
     respect to any taxpayer for any taxable year, the sum of--

       ``(I) an amount equal to the product of $3,600 multiplied 
     by the excess (if any) of the number of qualifying children 
     who have not attained age 6 as of the close of the calendar 
     year in which the taxable year of the taxpayer begins, and 
     who are taken into account in determining the annual advance 
     amount with respect to the taxpayer under section 7527A with 
     respect to months beginning in such taxable year, over the 
     number of such qualifying children taken into account in 
     determining the credit allowed under this section for such 
     taxable year, plus
       ``(II) an amount equal to the product of $3,000 multiplied 
     by the excess (if any) of the number of qualifying children 
     not described in clause (I), and who are taken into account 
     in determining the annual advance amount with respect to the 
     taxpayer under section 7527A with respect to months beginning 
     in such taxable year, over the number of such qualifying 
     children taken into account in determining the credit allowed 
     under this section for such taxable year.''.

       (e) Rules Relating to Reconciliation of Credit and Advance 
     Credit.--Section 24(j) is amended by adding at the end the 
     following new paragraphs:
       ``(3) Joint returns.--Except as otherwise provided by the 
     Secretary, in the case of an advance payment made under 
     section 7527A with respect to a joint return, half of such 
     payment shall be treated as having been made to each 
     individual filing such return.
       ``(4) Coordination with possessions of the united states.--
     For purposes of this subsection, payments made under section 
     7527A include payments made by any jurisdiction other than 
     the United States under section 7527A of the income tax law 
     of such jurisdiction, and advance payments made by American 
     Samoa pursuant to a plan described in subsection (k)(3)(B). 
     In carrying out this section, the Secretary shall coordinate 
     with each possession of the United States to prevent any 
     application of this paragraph that is inconsistent with the 
     purposes of this subsection.''.
       (f) Disclosure of Information Relating to Joint Filers and 
     Advance Payment of Child Tax Credit.--Section 6103(e) is 
     amended by adding at the end the following new paragraph:
       ``(12) Disclosure of information relating to joint filers 
     and advance payment of child tax credit.--In the case of an 
     individual to whom the Secretary makes payments under section 
     7527A, if the reference taxable year (as defined in section 
     7527A(b)(2)) that the Secretary uses to calculate such 
     payments is a year for which the individual filed an income 
     tax return jointly with another individual, the Secretary may 
     disclose to such individual any return information of such 
     other individual which is relevant in determining the payment 
     under section 7527A and the individual's eligibility for such 
     payment, including information regarding any of the 
     following:
       ``(A) The number of specified children, including by reason 
     of the birth of a child.
       ``(B) The name and TIN of specified children.
       ``(C) Marital status.
       ``(D) Modified adjusted gross income.
       ``(E) Principal place of abode.
       ``(F) Any other factor which the Secretary may provide 
     pursuant to section 7527A(c).''.
       (g) Repeal of Social Security Number Requirement.--
       (1) In general.--Section 24(h) is amended by striking 
     paragraph (7).
       (2) Conforming amendments.--
       (A) Section 24(h)(1) is amended by striking ``paragraphs 
     (2) through (7)'' and inserting ``paragraphs (2) through 
     (6)''.
       (B) Section 24(h)(4) is amended by striking subparagraph 
     (C).
       (h) Effective Date.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall apply to 
     taxable years beginning after December 31, 2021.
       (2) Payments.--
       (A) The amendments made by paragraphs (1), (2), (4), and 
     (5) of subsection (b) shall apply to payments after September 
     30, 2022.
       (B) The amendments made by paragraph (3) of subsection (b) 
     shall apply to payments after December 31, 2022.
       (3) Disclosure of information relating to joint filers and 
     advance payment of child tax credit.--The amendment made by 
     subsection (f) shall take effect on the date of the enactment 
     of this Act.

     SEC. 14102. REFUNDABLE CHILD TAX CREDIT AFTER 2022.

       (a) In General.--Section 24 is amended by adding at the end 
     the following new subsection:
       ``(l) Refundable Credit After 2022.--In the case of any 
     taxable year beginning after December 31, 2022, if the 
     taxpayer (in the case of a joint return, either spouse) has a 
     principal place of abode in the United States (determined as 
     provided in section 32) for more than one-half of the taxable 
     year or is a bona fide resident of Puerto Rico (within the 
     meaning of section 937(a)) for such taxable year--
       ``(1) subsection (d) shall not apply, and

[[Page S4233]]

       ``(2) so much of the credit determined under subsection (a) 
     (after application of paragraph (1)) as does not exceed the 
     amount of such credit which would be so determined without 
     regard to subsection (h)(4) shall be allowed under subpart C 
     (and not allowed under this subpart)''.
       (b) Conforming Amendments Related to Possessions of the 
     United States.--
       (1) Puerto rico.--Section 24(k)(2)(B), as amended by the 
     preceding provisions of this Act, is amended to read as 
     follows:
       ``(B) Application to taxable years after 2022.--For 
     application of refundable credit to residents of Puerto Rico 
     for taxable years after 2022, see subsection (l).''.
       (2) American samoa.--Section 24(k)(3)(C)(ii)(II), as 
     amended by the preceding provisions of this Act, is amended 
     to read as follows:

       ``(II) if such taxable year begins after December 31, 2022, 
     subsection (l) shall be applied by substituting `Puerto Rico 
     or American Samoa' for `Puerto Rico'.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

     SEC. 14103. APPROPRIATIONS.

       Immediately upon the enactment of this Act, in addition to 
     amounts otherwise available, there are appropriated out of 
     any money in the Treasury not otherwise appropriated:
       (1) $3,963,300,000 to remain available until September 30, 
     2026, for necessary expenses for the Internal Revenue Service 
     to administer the Child Tax Credit, and advance payments of 
     the Child Tax Credit, including the costs of disbursing such 
     payments, which shall supplement and not supplant any other 
     appropriations that may be available for this purpose, and
       (2) $1,000,000,000 is appropriated to the Department of the 
     Treasury, to remain available until September 30, 2026, to 
     support efforts to increase enrollment of eligible families 
     in the Child Tax Credit, for advance payments of the Child 
     Tax Credit, and for other tax benefits, including but not 
     limited to program outreach, costs of data sharing 
     arrangements, systems changes, forms changes, and related 
     efforts, and efforts to support the cross-enrollment of 
     beneficiaries of other programs in the Child Tax Credit, and 
     for advance payments of the Child Tax Credit, including by 
     establishing intergovernmental cooperative agreements with 
     states and local governments, the District of Columbia, 
     tribal governments, and possessions of the United States: 
     Provided, that such amount shall be available in addition to 
     any amounts otherwise available: Provided further, that these 
     funds may be awarded by federal agencies to state and local 
     governments, the District of Columbia, tribal governments, 
     and possessions of the United States, and private entities, 
     including organizations dedicated to free tax return 
     preparation and low income taxpayer clinics funded under 
     section 7526 of the Internal Revenue Code of 1986.

                       PART 2--CORPORATE TAX RATE

     SEC. 14201. INCREASE IN CORPORATE TAX RATE.

       (a) In General.--Section 11(b) is amended to read as 
     follows:
       ``(b) Amount of Tax.--
       ``(1) In general.--The amount of the tax imposed by 
     subsection (a) shall be the sum of--
       ``(A) 18 percent of so much of the taxable income as does 
     not exceed $400,000,
       ``(B) 21 percent of so much of the taxable income as 
     exceeds $400,000 but does not exceed $5,000,000, and
       ``(C) 28 percent of so much of the taxable income as 
     exceeds $5,000,000.
     In the case of a corporation which has taxable income in 
     excess of $10,000,000 for any taxable year, the amount of tax 
     determined under the preceding sentence for such taxable year 
     shall be increased by the lesser of (i) 3 percent of such 
     excess, or (ii) $362,000.
       ``(2) Certain personal service corporation not eligible for 
     graduated rates.--Notwithstanding paragraph (1), the amount 
     of the tax imposed by subsection (a) on the taxable income of 
     a qualified personal service corporation (as defined in 
     section 448(d)(2)) shall be equal to 28 percent of the 
     taxable income.''.
       (b) Proportional Adjustment of Deduction for Dividends 
     Received.--
       (1) In general.--Section 243(a)(1) is amended by striking 
     ``50 percent'' and inserting ``60 percent''.
       (2) Dividends from 20-percent owned corporations.--Section 
     243(c)(1) is amended--
       (A) prior to amendment by subparagraph (B), by striking 
     ``65 percent'' and inserting ``72.5 percent'', and
       (B) by striking ``50 percent'' and inserting ``60 
     percent''.
       (c) Conforming Amendment.--Section 1561 is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) In General.--The component members of a controlled 
     group of corporations on a December 31 shall, for their 
     taxable years which include such December 31, be limited for 
     purposes of this subtitle to--
       ``(1) amounts in each taxable income bracket in the 
     subparagraphs of section 11(b)(1) which do not aggregate more 
     than the maximum amount in each such bracket to which a 
     corporation which is not a component member of a controlled 
     group is entitled, and
       ``(2) one $250,000 ($150,000 if any component member is a 
     corporation described in section 535(c)(2)(B)) amount for 
     purposes of computing the accumulated earnings credit under 
     section 535(c)(2) and (3).
     The amounts specified in paragraph (1) shall be divided 
     equally among the component members of such group on such 
     December 31 unless all of such component members consent (at 
     such time and in such manner as the Secretary shall by 
     regulations prescribe) to an apportionment plan providing for 
     an unequal allocation of such amounts. The amounts specified 
     in paragraph (2) shall be divided equally among the component 
     members of such group on such December 31 unless the 
     Secretary prescribes regulations permitting an unequal 
     allocation of such amounts. Notwithstanding paragraph (1), in 
     applying the last sentence of section 11(b)(1) to such 
     component members, the taxable income of all such component 
     members shall be taken into account and any increase in tax 
     under such last sentence shall be divided among such 
     component members in the same manner as amounts under 
     paragraph (1).'', and
       (2) by striking ``accumulated earnings credit'' in the 
     heading and inserting ``certain multiple tax benefits''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.
       (e) Normalization Requirements.--
       (1) In general.--A normalization method of accounting shall 
     not be treated as being used with respect to any public 
     utility property for purposes of section 167 or 168 of the 
     Internal Revenue Code of 1986 if the taxpayer, in computing 
     its cost of service for ratemaking purposes and reflecting 
     operating results in its regulated books of account, reduces 
     the tax reserve deficit less rapidly or to a lesser extent 
     than such reserve would be reduced under the average rate 
     assumption method.
       (2) Alternative method for certain taxpayers.--If, as of 
     the first day of the taxable year that includes the date of 
     enactment of this Act--
       (A) the taxpayer was required by a regulatory agency to 
     compute depreciation for public utility property on the basis 
     of an average life or composite rate method, and
       (B) the taxpayer's books and underlying records did not 
     contain the vintage account data necessary to apply the 
     average rate assumption method,
     the taxpayer will be treated as using a normalization method 
     of accounting if, with respect to such jurisdiction, the 
     taxpayer uses the alternative method for public utility 
     property that is subject to the regulatory authority of that 
     jurisdiction.
       (3) Definitions.--For purposes of this subsection--
       (A) Tax reserve deficit.--The term ``tax reserve deficit'' 
     means the excess of--
       (i) the amount which would be the balance in the reserve 
     for deferred taxes (as described in section 168(i)(9)(A)(ii) 
     of the Internal Revenue Code of 1986, or section 
     167(l)(3)(G)(ii) of such Code as in effect on the day before 
     the date of the enactment of the Tax Reform Act of 1986) if 
     the amount of such reserve were determined by assuming that 
     the corporate rate increases provided in the amendments made 
     by this section were in effect for all prior periods, over
       (ii) the balance in such reserve as of the day before such 
     corporate rate increases take effect.
       (B) Average rate assumption method.--The average rate 
     assumption method is the method under which the excess in the 
     reserve for deferred taxes is reduced over the remaining 
     lives of the property as used in its regulated books of 
     account which gave rise to the reserve for deferred taxes. 
     Under such method, if timing differences for the property 
     reverse, the amount of the adjustment to the reserve for the 
     deferred taxes is calculated by multiplying--
       (i) the ratio of the aggregate deferred taxes for the 
     property to the aggregate timing differences for the property 
     as of the beginning of the period in question, by
       (ii) the amount of the timing differences which reverse 
     during such period.
       (C) Alternative method.--The ``alternative method'' is the 
     method in which the taxpayer--
       (i) computes the tax reserve deficit on all public utility 
     property included in the plant account on the basis of the 
     weighted average life or composite rate used to compute 
     depreciation for regulatory purposes, and
       (ii) reduces the tax reserve deficit ratably over the 
     remaining regulatory life of the property.
       (4) Treatment of normalization violation.--If, for any 
     taxable year ending after the date of the enactment of this 
     Act, the taxpayer does not use a normalization method of 
     accounting, such taxpayer shall not be treated as using a 
     normalization method of accounting for purposes of 
     subsections (f)(2) and (i)(9)(C) of section 168 of the 
     Internal Revenue Code of 1986.
       (5) Regulations.--The Secretary of the Treasury, or the 
     Secretary's designee, shall issue such regulations or other 
     guidance as may be necessary or appropriate to carry out this 
     subsection, including regulations or other guidance to 
     provide appropriate coordination between this subsection, 
     section 13001(d) of Public Law 115-97, and section 203(e) of 
     the Tax Reform Act of 1986.
                                 ______