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Text of the Family Tax Relief Act of 1997

This bill was introduced on April 15, 1997, in a previous session of Congress, but was not enacted. The text of the bill below is as of Apr 15, 1997 (Introduced).

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HR 1327 IH

105th CONGRESS

1st Session

H. R. 1327

To amend the Internal Revenue Code of 1986 to provide for a child tax credit.

IN THE HOUSE OF REPRESENTATIVES

April 15, 1997

Mr. CAMP 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 provide for a child tax credit.

    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 ‘Family Tax Relief Act of 1997’.

SEC. 2. CHILD TAX CREDIT.

    (a) IN GENERAL- Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 23 the following new section:

‘SEC. 24. 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 $500 multiplied by the number of qualifying children of the taxpayer.

    ‘(b) LIMITATION-

      ‘(1) IN GENERAL- The amount of the credit which would (but for this subsection) be allowed by subsection (a) shall be reduced (but not below zero) by $25 for each $1,000 (or fraction thereof) by which the taxpayer’s adjusted gross income exceeds the threshold amount.

      ‘(2) THRESHOLD AMOUNT- For purposes of paragraph (1), the term ‘threshold amount’ means--

        ‘(A) $110,000 in the case of a joint return,

        ‘(B) $75,000 in the case of an individual who is not married, and

        ‘(C) $55,000 in the case of a married individual filing a separate return.

      For purposes of this paragraph, marital status shall be determined under section 7703.

    ‘(c) QUALIFYING CHILD- For purposes of this section--

      ‘(1) IN GENERAL- The term ‘qualifying child’ means any individual if--

        ‘(A) the taxpayer is allowed a deduction under section 151 with respect to such individual for such taxable year,

        ‘(B) such individual has not attained the age of 18 as of the close of the calendar year in which the taxable year of the taxpayer begins, and

        ‘(C) such individual bears a relationship to the taxpayer described in section 32(c)(3)(B) (determined without regard to clause (ii) thereof).

      ‘(2) EXCEPTION FOR CERTAIN NONCITIZENS- The term ‘qualifying child’ shall not include any individual who would not be a dependent if the first sentence of section 152(b)(3) were applied without regard to all that follows ‘resident of the United States’.

    ‘(d) 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.’

    (b) CONFORMING AMENDMENT- The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 23 the following new item:

‘Sec. 24. Child tax credit.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1996.