American Family Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 1560 To amend the Internal Revenue Code of 1986 to make the child tax credit fully refundable, establish an increased child tax credit for young chil- dren, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 6, 2019 Ms. DELAURO (for herself, Ms. DELBENE, Ms. ADAMS, Mr. AGUILAR, Ms. BARRAGA´N, Ms. BASS, Mrs. BEATTY, Mr. BEYER, Mr. BISHOP of Geor- gia, Mr. BLUMENAUER, Ms. BLUNT ROCHESTER, Ms. BONAMICI, Mr. BRENDAN F. BOYLE of Pennsylvania, Mr. BROWN of Maryland, Ms. BROWNLEY of California, Mr. BUTTERFIELD, Mr. CARBAJAL, Mr. CA´RDENAS, Mr. CARSON of Indiana, Mr. CARTWRIGHT, Ms. CASTOR of Florida, Mr. CASTRO of Texas, Ms. JUDY CHU of California, Mr. CICILLINE, Mr. CISNEROS, Ms. CLARK of Massachusetts, Ms. CLARKE of New York, Mr. CLAY, Mr. CLEAVER, Mr. CLYBURN, Mr. COHEN, Mr. CONNOLLY, Mr. COURTNEY, Mr. CUMMINGS, Mr. DANNY K. DAVIS of Il- linois, Ms. DEAN, Mr. DEFAZIO, Ms. DEGETTE, Mrs. DEMINGS, Mr. DESAULNIER, Mr. DEUTCH, Mrs. DINGELL, Mr. MICHAEL F. DOYLE of Pennsylvania, Ms. ESCOBAR, Ms. ESHOO, Mr. ESPAILLAT, Mr. EVANS, Mr. FOSTER, Ms. FRANKEL, Ms. FUDGE, Mr. GALLEGO, Mr. GARAMENDI, Mr. GARCI´A of Illinois, Ms. GARCIA of Texas, Mr. GOMEZ, Mr. GRIJALVA, Ms. HAALAND, Mr. HASTINGS, Mrs. HAYES, Mr. HECK, Mr. HIGGINS of New York, Mr. HIMES, Mr. HOYER, Mr. HUFFMAN, Ms. JACKSON LEE, Ms. JAYAPAL, Ms. JOHNSON of Texas, Mr. JOHNSON of Georgia, Ms. KAPTUR, Mr. KEATING, Ms. KELLY of Illinois, Mr. KEN- NEDY, Mr. KHANNA, Mr. KILDEE, Mr. KILMER, Mrs. KIRKPATRICK, Ms. KUSTER of New Hampshire, Mr. JEFFRIES, Mr. LANGEVIN, Mr. LARSEN of Washington, Mr. LARSON of Connecticut, Mrs. LAWRENCE, Ms. LEE of California, Mrs. LEE of Nevada, Mr. LEVIN of Michigan, Mr. LEWIS, Mr. TED LIEU of California, Mr. LOEBSACK, Ms. LOFGREN, Mr. LOWENTHAL, Mrs. LOWEY, Mr. LUJA´N, Mr. LYNCH, Mr. MALINOWSKI, Mrs. CAROLYN B. MALONEY of New York, Mr. SEAN PATRICK MALONEY of New York, Ms. MATSUI, Ms. MCCOLLUM, Mr. MCEACHIN, Mr. MCGOVERN, Mr. MCNERNEY, Mr. MEEKS, Ms. MENG, Ms. MOORE, Mr. MORELLE, Mr. MOULTON, Mr. NADLER, Mrs. NAPOLITANO, Mr. NEGUSE, Ms. NORTON, Ms. OCASIO-CORTEZ, Ms. OMAR, Mr. PALLONE, Mr. PANETTA, Mr. PASCRELL, Mr. PERLMUTTER, Ms. PINGREE, Ms. PLASKETT, Mr. POCAN, Mr. PRICE of North Carolina, Mr. QUIGLEY, Mr. VerDate Sep 11 2014 18:53 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H1560.IH H1560 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 1560 IH NORCROSS, Mr. RASKIN, Miss RICE of New York, Mr. RICHMOND, Mr. ROUDA, Ms. ROYBAL-ALLARD, Mr. RUPPERSBERGER, Mr. RUSH, Mr. RYAN, Ms. SA´NCHEZ, Mr. SAN NICOLAS, Mr. SARBANES, Ms. SCHA- KOWSKY, Ms. SCHRIER, Mr. SCOTT of Virginia, Mr. DAVID SCOTT of Georgia, Mr. SERRANO, Ms. SEWELL of Alabama, Ms. SHALALA, Mr. SIRES, Mr. SOTO, Ms. SPEIER, Mr. SUOZZI, Mr. TAKANO, Mr. THOMP- SON of Mississippi, Ms. TITUS, Ms. TLAIB, Mr. TONKO, Mrs. TORRES of California, Mr. VARGAS, Mr. VEASEY, Mr. VELA, Ms. VELA´ZQUEZ, Ms. WASSERMAN SCHULTZ, Ms. WATERS, Mrs. WATSON COLEMAN, Mr. WELCH, Ms. WEXTON, Ms. WILD, Ms. WILSON of Florida, Mr. YAR- MUTH, Mr. ROSE of New York, Ms. HILL of California, Mr. GREEN of Texas, Mr. CUELLAR, Mr. ALLRED, Ms. GABBARD, Mrs. CRAIG, Ms. MUCARSEL-POWELL, Mr. SWALWELL of California, Ms. PRESSLEY, Mr. DOGGETT, Mr. CRIST, and Ms. HOULAHAN) 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 the child tax credit fully refundable, establish an in- creased child tax credit for young children, and for other purposes. 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 ‘‘American Family Act 4 of 2019’’. 5 SEC. 2. ESTABLISHMENT OF FULLY REFUNDABLE CHILD 6 TAX CREDIT. 7 (a) ELIMINATION OF EXISTING CHILD TAX CRED- 8 IT.—Subpart A of part IV of subchapter A of chapter 1 9 of subtitle A of the Internal Revenue Code of 1986 is 10 amended by striking section 24. 11 VerDate Sep 11 2014 18:53 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1560.IH H1560 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 1560 IH (b) ESTABLISHMENT OF FULLY REFUNDABLE 1 CHILD TAX CREDIT.—Subpart C of part IV of subchapter 2 A of chapter 1 of subtitle A of such Code is amended by 3 inserting after section 36B the following new section: 4 ‘‘SEC. 36C. CHILD TAX CREDIT. 5 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al- 6 lowed as a credit against the tax imposed by this chapter 7 for the taxable year an amount equal to the sum of— 8 ‘‘(1) with respect to each qualifying child of the 9 taxpayer who has attained 6 years of age before the 10 close of such taxable year and for which the tax- 11 payer is allowed a deduction under section 151, an 12 amount equal to $3,000, and 13 ‘‘(2) with respect to each qualifying child of the 14 taxpayer who has not attained 6 years of age before 15 the close of such taxable year and for which the tax- 16 payer is allowed a deduction under section 151, an 17 amount equal to 120 percent of the dollar amount 18 in paragraph (1). 19 ‘‘(b) LIMITATION.— 20 ‘‘(1) IN GENERAL.—The amount of the credit 21 allowable under subsection (a) shall be reduced (but 22 not below zero) by the applicable amount for each 23 $1,000 (or fraction thereof) by which the taxpayer’s 24 modified adjusted gross income exceeds the thresh- 25 VerDate Sep 11 2014 18:53 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1560.IH H1560 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 1560 IH old amount. For purposes of the preceding sentence, 1 the term ‘modified adjusted gross income’ means ad- 2 justed gross income increased by any amount ex- 3 cluded from gross income under section 911, 931, or 4 933. 5 ‘‘(2) THRESHOLD AMOUNT.— 6 ‘‘(A) IN GENERAL.—For purposes of para- 7 graph (1), the term ‘threshold amount’ 8 means— 9 ‘‘(i) $180,000 in the case of a joint 10 return, 11 ‘‘(ii) $130,000 in the case of an indi- 12 vidual who is not married, and 13 ‘‘(iii) $90,000 in the case of a married 14 individual filing a separate return. 15 ‘‘(B) MARITAL STATUS.—For purposes of 16 this paragraph, marital status shall be deter- 17 mined under section 7703. 18 ‘‘(3) APPLICABLE AMOUNT.—For purposes of 19 paragraph (1), the term ‘applicable amount’ means 20 an amount equal to the quotient of— 21 ‘‘(A) the amount of the credit allowable 22 under subsection (a), as determined without re- 23 gard to this subsection, divided by 24 ‘‘(B) an amount equal to the product of— 25 VerDate Sep 11 2014 18:53 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1560.IH H1560 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 1560 IH ‘‘(i) $20, multiplied by 1 ‘‘(ii) the total number of qualifying 2 children of the taxpayer. 3 ‘‘(c) QUALIFYING CHILD.— 4 ‘‘(1) IN GENERAL.—In this section, the term 5 ‘qualifying child’ means a qualifying child of the tax- 6 payer (as defined in section 152(c)) who has not at- 7 tained 18 years of age. 8 ‘‘(2) EXCEPTION FOR CERTAIN NON-CITI- 9 ZENS.—The term ‘qualifying child’ shall not include 10 any individual who would not be a dependent if sub- 11 paragraph (A) of section 152(b)(3) were applied 12 without regard to all that follows ‘resident of the 13 United States’. 14 ‘‘(d) INFLATION ADJUSTMENT.— 15 ‘‘(1) IN GENERAL.—In the case of any taxable 16 year beginning after 2020, the $3,000 amount in 17 subsection (a)(1) shall be increased by an amount 18 equal to— 19 ‘‘(A) such dollar amount, multiplied by 20 ‘‘(B) the cost-of-living adjustment deter- 21 mined under paragraph (2) for the calendar 22 year in which the taxable year begins. 23 ‘‘(2) COST-OF-LIVING ADJUSTMENT.—For pur- 24 poses of paragraph (1), the cost-of-living adjustment 25 VerDate Sep 11 2014 18:53 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1560.IH H1560 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 1560 IH for any calendar year is the percentage (if any) by 1 which— 2 ‘‘(A) the CPI for the preceding calendar 3 year (as determined pursuant to section 4 1(f)(4)), exceeds 5 ‘‘(B) the CPI for calendar year 2019. 6 ‘‘(3) ROUNDING.—If any increase determined 7 under paragraph (1) is not a multiple of $50, such 8 increase shall be rounded to the nearest multiple of 9 $50. 10 ‘‘(e) PARTIAL NON-REFUNDABLE CREDIT ALLOWED 11 FOR CERTAIN OTHER DEPENDENTS.— 12 ‘‘(1) IN GENERAL.—In the case of a taxable 13 year beginning after December 31, 2019, and before 14 January 1, 2026, the aggregate credits allowed to a 15 taxpayer under subpart A shall be increased by $500 16 for each dependent of the taxpayer (as defined in 17 section 152) other than a qualifying child described 18 in subsection (c). The amount of the credit allowed 19 under this subsection shall not be treated as a credit 20 allowed under this subpart. 21 ‘‘(2) EXCEPTION FOR CERTAIN NONCITIZENS.— 22 Paragraph (1) shall not apply with respect to any 23 individual who would not be a dependent if subpara- 24 graph (A) of section 152(b)(3) were applied without 25 VerDate Sep 11 2014 18:53 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1560.IH H1560 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 1560 IH regard to all that follows ‘resident of the United 1 States’. 2 ‘‘(3) LIMITATION.— 3 ‘‘(A) IN GENERAL.—The amount of the 4 credit allowable under paragraph (1) shall be 5 reduced (but not below zero) by $50 for each 6 $1,000 (or fraction thereof) by which the tax- 7 payer’s modified adjusted gross income exceeds 8 the threshold amount. 9 ‘‘(B) MODIFIED ADJUSTED GROSS IN- 10 COME.—For purposes of subparagraph (A), the 11 term ‘modified adjusted gross income’ means 12 adjusted gross income increased by any amount 13 excluded from gross income under section 911, 14 931, or 933. 15 ‘‘(C) THRESHOLD AMOUNT.— 16 ‘‘(i) IN GENERAL.—For purposes of 17 subparagraph (A), the term ‘threshold 18 amount’ means— 19 ‘‘(I) $200,000 in the case of a 20 joint return, 21 ‘‘(II) $150,000 in the case of an 22 individual who is not married, and 23 VerDate Sep 11 2014 18:53 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1560.IH H1560 pamtmann on DSKBFK8HB2PROD with BILLS 8 •HR 1560 IH ‘‘(III) $100,000 in the case of a 1 married individual filing a separate 2 return. 3 ‘‘(ii) MARITAL STATUS.—For pur- 4 poses of this subparagraph, marital status 5 shall be determined under section 7703. 6 ‘‘(f) IDENTIFICATION REQUIREMENTS.— 7 ‘‘(1) QUALIFYING CHILD AND DEPENDENT 8 IDENTIFICATION REQUIREMENT.—No credit shall be 9 allowed under this section to a taxpayer with respect 10 to any qualifying child or dependent unless the tax- 11 payer includes the name and taxpayer identification 12 number of such qualifying child or dependent on the 13 return of tax for the taxable year and such taxpayer 14 identification number was issued on or before the 15 due date for filing such return. 16 ‘‘(2) TAXPAYER IDENTIFICATION REQUIRE- 17 MENT.—No credit shall be allowed under this section 18 if the taxpayer identification number of the taxpayer 19 was issued after the due date for filing the return 20 for the taxable year. 21 ‘‘(g) TAXABLE YEAR MUST BE FULL TAXABLE 22 YEAR.—Except in the case of a taxable year closed by rea- 23 son of the death of the taxpayer, no credit shall be allow- 24 VerDate Sep 11 2014 18:53 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1560.IH H1560 pamtmann on DSKBFK8HB2PROD with BILLS 9 •HR 1560 IH able under this section in the case of a taxable year cov- 1 ering a period of less than 12 months. 2 ‘‘(h) RESTRICTIONS ON TAXPAYERS WHO IMPROP- 3 ERLY CLAIMED CREDIT IN PRIOR YEAR.— 4 ‘‘(1) TAXPAYERS MAKING PRIOR FRAUDULENT 5 OR RECKLESS CLAIMS.— 6 ‘‘(A) IN GENERAL.—No credit shall be al- 7 lowed under this section for any taxable year in 8 the disallowance period. 9 ‘‘(B) DISALLOWANCE PERIOD.—For pur- 10 poses of subparagraph (A), the disallowance pe- 11 riod is— 12 ‘‘(i) the period of 10 taxable years 13 after the most recent taxable year for 14 which there was a final determination that 15 the taxpayer’s claim of credit under this 16 section was due to fraud, and 17 ‘‘(ii) the period of 2 taxable years 18 after the most recent taxable year for 19 which there was a final determination that 20 the taxpayer’s claim of credit under this 21 section was due to reckless or intentional 22 disregard of rules and regulations (but not 23 due to fraud). 24 VerDate Sep 11 2014 18:53 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1560.IH H1560 pamtmann on DSKBFK8HB2PROD with BILLS 10 •HR 1560 IH ‘‘(2) TAXPAYERS MAKING IMPROPER PRIOR 1 CLAIMS.—In the case of a taxpayer who is denied 2 credit under this section for any taxable year as a 3 result of the deficiency procedures under subchapter 4 B of chapter 63, no credit shall be allowed under 5 this section for any subsequent taxable year unless 6 the taxpayer provides such information as the Sec- 7 retary may require to demonstrate eligibility for 8 such credit. 9 ‘‘(i) RECONCILIATION OF CREDIT AND ADVANCE 10 CREDIT.— 11 ‘‘(1) IN GENERAL.—The amount of the credit 12 allowed under this section for any taxable year shall 13 be reduced (but not below zero) by the aggregate 14 amount of any advance payments of such credit 15 under section 7527A for such taxable year. 16 ‘‘(2) EXCESS ADVANCE PAYMENTS.—If the ag- 17 gregate amount of advance payments under section 18 7527A for the taxable year exceed the amount of the 19 credit allowed under this section for such taxable 20 year (determined without regard to paragraph (1)), 21 the tax imposed by this chapter for such taxable 22 year shall be increased by the amount of such ex- 23 cess’’. 24 VerDate Sep 11 2014 18:53 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1560.IH H1560 pamtmann on DSKBFK8HB2PROD with BILLS 11 •HR 1560 IH (c) ADVANCE PAYMENT OF CREDIT.—Chapter 77 of 1 the Internal Revenue Code of 1986 is amended by insert- 2 ing after section 7527 the following new section: 3 ‘‘SEC. 7527A. ADVANCE PAYMENT OF CHILD TAX CREDIT. 4 ‘‘(a) IN GENERAL.—As soon as practicable and not 5 later than 1 year after the date of the enactment of this 6 section, the Secretary shall establish a program for mak- 7 ing advance payments of the credit allowed under sub- 8 section (a) of section 36C on a monthly basis (determined 9 without regard to subsection (i)(1) of such section), or as 10 frequently as the Secretary determines to be administra- 11 tively feasible, to taxpayers allowed such credit. 12 ‘‘(b) LIMITATION.— 13 ‘‘(1) IN GENERAL.—The Secretary may make 14 payments under subsection (a) only to the extent 15 that the total amount of such payments made to any 1 [Text truncated for display. Full text available on Congress.gov.]