Child Tax Credit Extension Act

II 116TH CONGRESS 1ST SESSION S. 2490 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 SENATE OF THE UNITED STATES SEPTEMBER 17, 2019 Ms. MCSALLY (for herself, Ms. ERNST, Mr. BRAUN, and Mr. SCOTT of Flor- ida) 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 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 ‘‘Child Tax Credit Ex- 4 tension Act’’. 5 VerDate Sep 11 2014 18:22 Sep 19, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2490.IS S2490 kjohnson on DSK79L0C42 with BILLS 2 •S 2490 IS SEC. 2. PERMANENT INCREASE AND MODIFICATION OF 1 CHILD TAX CREDIT. 2 (a) INCREASE IN CREDIT AMOUNT.—Section 24(a) of 3 the Internal Revenue Code of 1986 is amended by striking 4 ‘‘$1,000’’ and inserting ‘‘$2,000’’. 5 (b) LIMITATION.—Paragraph (2) of section 24(b) of 6 the Internal Revenue Code of 1986 is amended to read 7 as follows: 8 ‘‘(2) THRESHOLD AMOUNT.—For purposes of 9 paragraph (1), the term ‘threshold amount’ means— 10 ‘‘(A) $400,000 in the case of a joint re- 11 turn, and 12 ‘‘(B) $200,000 in any other case.’’. 13 (c) PARTIAL CREDIT ALLOWED FOR CERTAIN 14 OTHER DEPENDENTS.—Subsection (h) of section 24 of 15 the Internal Revenue Code of 1986 is amended to read 16 as follows: 17 ‘‘(h) PARTIAL CREDIT ALLOWED FOR CERTAIN 18 OTHER DEPENDENTS.— 19 ‘‘(1) IN GENERAL.—The credit determined 20 under subsection (a) shall be increased by $500 for 21 each dependent of the taxpayer (as defined in sec- 22 tion 7706) other than a qualifying child described in 23 subsection (c). 24 ‘‘(2) EXCEPTION FOR CERTAIN NONCITIZENS.— 25 Paragraph (1) shall not apply with respect to any 26 VerDate Sep 11 2014 18:22 Sep 19, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2490.IS S2490 kjohnson on DSK79L0C42 with BILLS 3 •S 2490 IS individual who would not be a dependent if subpara- 1 graph (A) of section 7706(b)(3) were applied with- 2 out regard to all that follows ‘resident of the United 3 States’. 4 ‘‘(3) CERTAIN QUALIFYING CHILDREN.—In the 5 case of any qualifying child with respect to whom a 6 credit is not allowed under this section by reason of 7 subsection (e)(1), such child shall be treated as a de- 8 pendent to whom subparagraph (A) applies.’’. 9 (d) MAXIMUM AMOUNT OF REFUNDABLE CREDIT.— 10 Subsection (d) of section 24 of the Internal Revenue Code 11 of 1986 is amended by inserting after paragraph (3) the 12 following new paragraph: 13 ‘‘(4) LIMITATION.— 14 ‘‘(A) IN GENERAL.—The amount deter- 15 mined under paragraph (1)(A) with respect to 16 any qualifying child shall not exceed $1,400, 17 and such paragraph shall be applied without re- 18 gard to subsection (h). 19 ‘‘(B) ADJUSTMENT FOR INFLATION.—In 20 the case of a taxable year beginning after 2018, 21 the $1,400 amount in subparagraph (A) shall 22 be increased by an amount equal to— 23 ‘‘(i) such dollar amount, multiplied by 24 VerDate Sep 11 2014 18:22 Sep 19, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2490.IS S2490 kjohnson on DSK79L0C42 with BILLS 4 •S 2490 IS ‘‘(ii) the cost-of-living adjustment de- 1 termined under section 1(f)(3) for the cal- 2 endar year in which the taxable year be- 3 gins, determined by substituting ‘2017’ for 4 ‘2016’ in subparagraph (A)(ii) thereof. 5 If any increase under this clause is not a mul- 6 tiple of $100, such increase shall be rounded to 7 the next lowest multiple of $100.’’. 8 (e) EARNED INCOME THRESHOLD FOR REFUNDABLE 9 CREDIT.—Section 24(d)(1)(B) of the Internal Revenue 10 Code of 1986 is amended by striking ‘‘$3,000’’ and insert- 11 ing ‘‘$2,500’’. 12 (f) SOCIAL SECURITY NUMBER REQUIRED.—Para- 13 graph (1) of section 24(e) of the Internal Revenue Code 14 of 1986 is amended to read as follows: 15 ‘‘(1) QUALIFYING CHILD SOCIAL SECURITY 16 NUMBER REQUIREMENT.—No credit shall be allowed 17 under this section to a taxpayer with respect to any 18 qualifying child unless the taxpayer includes the 19 name and social security number of such child on 20 the return of tax for the taxable year. For purposes 21 of the preceding sentence, the term ‘social security 22 number’ means a social security number issued to an 23 individual by the Social Security Administration, but 24 only if the social security number is issued— 25 VerDate Sep 11 2014 18:22 Sep 19, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2490.IS S2490 kjohnson on DSK79L0C42 with BILLS 5 •S 2490 IS ‘‘(A) to a citizen of the United States or 1 pursuant to subclause (I) (or that portion of 2 subclause (III) that relates to subclause (I)) of 3 section 205(c)(2)(B)(i) of the Social Security 4 Act, and 5 ‘‘(B) before the due date for such return.’’. 6 (g) EFFECTIVE DATE.—The amendments made by 7 this section shall take effect as if included in the enact- 8 ment of section 11022 of Public Law 115–97. 9 Æ VerDate Sep 11 2014 18:22 Sep 19, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S2490.IS S2490 kjohnson on DSK79L0C42 with BILLS