S. 3680 (112th): 2013 Making Working Pay Credit Act

112th Congress, 2011–2013. Text as of Dec 13, 2012 (Introduced).

Status & Summary | PDF | Source: GPO

II

112th CONGRESS

2d Session

S. 3680

IN THE SENATE OF THE UNITED STATES

December 13, 2012

(for himself, Mr. Udall of New Mexico, and Mr. Sanders) 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 modify and extend the making work pay credit.

1.

Short title

This Act may be cited as the 2013 Making Working Pay Credit Act.

2.

Extension and modification of making work pay credit

(a)

Extension

(1)

In general

Subsection (e) of section 36A of the Internal Revenue Code of 1986 is amended to read as follows:

(e)

Termination

This section shall not apply—

(1)

to taxable years beginning after December 31, 2010, and before January 1, 2013, and

(2)

to taxable years beginning after December 31, 2013.

.

(2)

Treatment of possessions

Paragraph (1) of section 1001 of division B of the American Recovery and Reinvestment Act of 2009 is amended by striking beginning in 2009 and 2010 each place it appears and inserting to which section 36A of the Internal Revenue Code of 1986 applies.

(b)

Modification of credit

(1)

Credit amount

Subsection (a) of section 36A of such Code is amended—

(A)

in paragraph (1), by striking 6.2 percent and inserting 6.0 percent, and

(B)

in paragraph (2), by striking $400 ($800 and inserting $800 ($1,600.

(2)

Limitation based on modified adjusted gross income

(A)

In general

Section 36A(b) of such Code is amended by redesignating paragraph (2) as paragraph (3) and by striking paragraph (1) and inserting the following:

(1)

In general

The amount allowable as a credit under subsection (a) (determined without regard to this subsection and subsection (c)) for the taxable year shall be reduced (but not below zero) by the amount determined under paragraph (2).

(2)

Amount of reduction

(A)

In general

The amount determined under this paragraph is the amount which bears the same ratio to the amount which would be so allowable as—

(i)

the excess of—

(I)

the taxpayer's modified adjusted gross income for such taxable year, over

(II)

$60,000, bears to

(ii)

$30,000.

(B)

Joint returns

In the case of a joint return, subparagraph (A) shall be applied—

(i)

by substituting $90,000 for $60,000 in clause (i)(II) thereof, and

(ii)

by substituting $60,000 for $30,000 in clause (ii) thereof.

(C)

Married filing separately

In the case of a married individual filing a separate return, subparagraph (A) shall be applied by substituting $45,000 for $60,000 in clause (i)(II) thereof.

.

(B)

Conforming amendment

Paragraph (3) of section 36A(b) of such Code, as redesignated by subparagraph (A), is amended by striking subparagraph (A) and inserting this subsection.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.