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Text of the Child Tax Credit Expansion Act of 2000

This bill was introduced on September 28, 2000, in a previous session of Congress, but was not enacted. The text of the bill below is as of Sep 28, 2000 (Introduced).

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S 3138 IS

106th CONGRESS

2d Session

S. 3138

To amend the Internal Revenue Code of 1986 to increase the amount and availability of the child tax credit and make the credit refundable.

IN THE SENATE OF THE UNITED STATES

September 28 (legislative day, SEPTEMBER 22), 2000

Mr. GRAMS 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 increase the amount and availability of the child tax credit and make the credit refundable.

    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 ‘Child Tax Credit Expansion Act of 2000’.

SEC. 2. REFUNDABLE CHILD TAX CREDIT.

    (a) IN GENERAL- Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 35 as section 36 and by inserting after section 34 the following new section:

‘SEC. 35. CHILD TAX CREDIT.

    ‘(a) ALLOWANCE OF CREDIT- There shall be allowed as a credit against the tax imposed by this subtitle for the taxable year with respect to each qualifying child of the taxpayer an amount equal to $1,000.

    ‘(b) LIMITATION BASED ON ADJUSTED GROSS INCOME-

      ‘(1) IN GENERAL- The amount of the credit allowable under subsection (a) shall be reduced (but not below zero) by $50 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- 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 the taxable year,

        ‘(B) such individual is described in clause (i) or (ii) of section 151(c)(1)(B), and

        ‘(C) such individual bears a relationship to the taxpayer described in section 32(c)(3)(B).

      ‘(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) COST-OF-LIVING ADJUSTMENT-

      ‘(1) IN GENERAL- In the case of any taxable year beginning in a calendar year after 2001, each dollar amount under subsection (a) or (b)(2) 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 2000’ for ‘calendar year 1992’ in subparagraph (B) thereof.

      ‘(2) ROUNDING RULE- If any amount after adjustment under paragraph (1) is not a multiple of--

        ‘(A) $50 in the case of subsection (a), such amount shall be rounded to the next lower multiple of $50, and

        ‘(B) $1,000 in the case of subsection (b)(2), such amount shall be rounded to the next lower multiple of $1,000.

    ‘(e) 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 such 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.’.

    (b) CONFORMING AMENDMENTS-

      (1) Section 24 of the Internal Revenue Code of 1986 is hereby repealed.

      (2) The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 24.

      (3) Section 32 of such Code is amended by striking subsection (n).

      (4) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 35 and inserting the following new items:

      ‘Sec. 35. Refundable child tax credit.

      ‘Sec. 36. Overpayments of tax.’

      (5) Section 1324(b)(2) of title 31, United States Code, is amended by striking ‘or’ before ‘enacted’ and by inserting before the period at the end ‘, or enacted by the Child Tax Credit Expansion Act of 2000’.

      (6) Section 6213(g)(2)(I) of the Internal Revenue Code of 1986 is amended by striking ‘section 24(e)’ and inserting ‘section 35(e)’.

      (7) Section 6213(g)(2)(L) of such Act is amended by striking ‘24, or 32’ and inserting ‘32, or 35’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2000.