Permanent Tax Relief for Working Families Act

I 116TH CONGRESS 1ST SESSION H. R. 217 To amend the Internal Revenue Code of 1986 to make permanent certain changes made by Public Law 115–97 to the child tax credit. IN THE HOUSE OF REPRESENTATIVES JANUARY 3, 2019 Mr. SMITH of Missouri 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 make permanent certain changes made by Public Law 115– 97 to the child tax credit. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Permanent Tax Relief 4 for Working Families Act’’. 5 SEC. 2. INCREASE IN AND MODIFICATION OF CHILD TAX 6 CREDIT. 7 (a) IN GENERAL.—Section 24 of the Internal Rev- 8 enue Code of 1986 is amended— 9 VerDate Sep 11 2014 05:43 Jan 17, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H217.IH H217 kjohnson on DSK79L0C42 with BILLS 2 •HR 217 IH (1) by amending subsection (a) to read as fol- 1 lows: 2 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al- 3 lowed as a credit against the tax imposed by this chapter 4 for the taxable year an amount equal to the sum of— 5 ‘‘(1) $2,000 for each qualifying child of the tax- 6 payer, and 7 ‘‘(2) $500 for each dependent of the taxpayer 8 (as defined in section 152, without regard to all that 9 follows ‘resident of the United States’ in section 10 152(b)(3)(A)) other than a qualifying child.’’, 11 (2) in subsection (b)— 12 (A) by striking ‘‘the threshold amount’’ in 13 paragraph (1) and inserting ‘‘$400,000 in the 14 case of a joint return ($200,000 in any other 15 case)’’, 16 (B) by striking paragraph (2), and 17 (C) by striking ‘‘LIMITATIONS’’ and all 18 that follows through ‘‘The amount’’ and insert- 19 ing ‘‘LIMITATION BASED ON ADJUSTED GROSS 20 INCOME.—The amount’’, 21 (3) in subsection (d)(1)(A), by striking all that 22 follows ‘‘under this section’’ and inserting the fol- 23 lowing: ‘‘determined— 24 VerDate Sep 11 2014 05:43 Jan 17, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H217.IH H217 kjohnson on DSK79L0C42 with BILLS 3 •HR 217 IH ‘‘(i) by substituting ‘$1,400’ for 1 ‘$2,000’ in subsection (a)(1), 2 ‘‘(ii) without regard to subsection 3 (a)(2), and 4 ‘‘(iii) without regard to this subsection 5 and the limitation under section 26(a).’’, 6 (4) in subsection (d)(1)(B)(i), by striking 7 ‘‘$3,000’’ and inserting ‘‘$2,500’’, 8 (5) by inserting after subsection (d)(2) the fol- 9 lowing new paragraph: 10 ‘‘(3) ADJUSTMENT FOR INFLATION.—In the 11 case of a taxable year beginning after 2018, the 12 $1,400 amount in paragraph (1)(A) shall be in- 13 creased by an amount equal to— 14 ‘‘(A) such dollar amount, multiplied by 15 ‘‘(B) the cost-of-living adjustment deter- 16 mined under section 1(f)(3) for the calendar 17 year in which the taxable year begins, deter- 18 mined by substituting ‘2017’ for ‘2016’ in sub- 19 paragraph (A)(ii) thereof. 20 If any increase under this paragraph is not a mul- 21 tiple of $100, such increase shall be rounded to the 22 next lowest multiple of $100.’’, 23 (6) by amending subsection (e) to read as fol- 24 lows: 25 VerDate Sep 11 2014 05:43 Jan 17, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H217.IH H217 kjohnson on DSK79L0C42 with BILLS 4 •HR 217 IH ‘‘(e) IDENTIFICATION REQUIREMENTS.— 1 ‘‘(1) TAXPAYER.—No credit shall be allowed 2 under this section if the identifying number of the 3 taxpayer was issued after the due date for filing the 4 return for the taxable year. 5 ‘‘(2) QUALIFYING CHILD.— 6 ‘‘(A) IN GENERAL.—No credit shall be al- 7 lowed under this section to a taxpayer with re- 8 spect to any qualifying child unless the taxpayer 9 includes the social security number of such 10 child on the return of tax for the taxable year. 11 ‘‘(B) SOCIAL SECURITY NUMBER DE- 12 FINED.—For purposes of this subsection, the 13 term ‘social security number’ means a social se- 14 curity number issued to an individual by the 15 Social Security Administration, but only if the 16 social security number is issued— 17 ‘‘(i) to a citizen of the United States 18 or pursuant to subclause (I) (or that por- 19 tion of subclause (III) that relates to sub- 20 clause (I)) of section 205(c)(2)(B)(i) of the 21 Social Security Act, and 22 ‘‘(ii) before the due date for such re- 23 turn. 24 VerDate Sep 11 2014 05:43 Jan 17, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H217.IH H217 kjohnson on DSK79L0C42 with BILLS 5 •HR 217 IH ‘‘(C) TREATMENT OF QUALIFYING CHIL- 1 DREN DISALLOWED CREDIT.—In the case of 2 any qualifying child with respect to whom a 3 credit is not allowed under this section by rea- 4 son of subparagraph (A), such child shall be 5 treated as a dependent to whom subsection 6 (a)(2) applies.’’, and 7 (7) by striking subsection (h). 8 (b) EFFECTIVE DATE.—The amendments made by 9 this section shall take effect as if included in the enact- 10 ment of section 11022 of Public Law 115–97. 11 Æ VerDate Sep 11 2014 05:43 Jan 17, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H217.IH H217 kjohnson on DSK79L0C42 with BILLS