A bill to amend the Internal Revenue Code of 1986 to treat Alaska Permanent Fund dividends as earned income for purposes of the kiddie tax.

II 116TH CONGRESS 1ST SESSION S. 2078 To amend the Internal Revenue Code of 1986 to treat Alaska Permanent Fund dividends as earned income for purposes of the kiddie tax. IN THE SENATE OF THE UNITED STATES JULY 10, 2019 Ms. MURKOWSKI 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 treat Alaska Permanent Fund dividends as earned income for pur- poses of the kiddie tax. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. CERTAIN SCHOLARSHIPS TREATED AS EARNED 3 INCOME FOR KIDDIE TAX. 4 (a) IN GENERAL.—Section 1(g)(4) of the Internal 5 Revenue Code of 1986 is amended by adding at the end 6 the following new subparagraph: 7 ‘‘(D) TREATMENT OF ALASKA PERMANENT 8 FUND DIVIDENDS.—For purposes of this sub- 9 section, any Alaska Permanent Fund dividend 10 VerDate Sep 11 2014 00:31 Jul 12, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2078.IS S2078 pamtmann on DSKBFK8HB2PROD with BILLS 2 •S 2078 IS which is received by the child referred to in 1 paragraph (1) and included in the gross income 2 of such child shall be treated as earned income 3 of such child.’’. 4 (b) EFFECTIVE DATE.—The amendment made by 5 this section shall apply to taxable years beginning after 6 December 31, 2017. 7 Æ VerDate Sep 11 2014 00:31 Jul 12, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S2078.IS S2078 pamtmann on DSKBFK8HB2PROD with BILLS