,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #baaf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #bb1 #bjac ,mr4  
,neal 7= himself1 ,ms4 ,de,lauro1 ,mr4  
,lev91 ,mr4 ,rangel1 ,mr4 ,mc,dermott1  
,mr4 ,lewis1 ,mr4 ,bec]ra1 ,mr4         
,doggett1 ,mr4 ,l>son ( ,connecticut1   
,mr4 ,blum5au]1 ,mr4 ,pascrell1 ,mr4    
,cr[ley1 ,ms4 ,s*w>tz1 ,mr4 ,danny ,k4  
,davis ( ,ill9ois1 ,ms4 ,l9da ,t4 ,sn*ez
 ( ,cali=nia1 ,mr4 ,k9d1 & ,mr4 ,?ompson
 ( ,cali=nia7 introduc$ ! foll[+ bill2  
:i* 0 ref]r$ to ! ,committee on ,ways & 
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to make           
improvem5ts 9 ! e>n$ income tax cr$it4  
#a4 ,%ort title2 table ( cont5ts  7a7   
,%ort title ,?is ,act may be cit$ z ! ,!
 ,e>n$ ,income ,tax ,cr$it ,improvem5t &
 ,simplification ,act #bjac4  7b7 ,table
 ( cont5ts ,! table ( cont5ts = ?is ,act
 is z foll[s3  ,sec4 #a4 ,%ort title2   
table ( cont5ts4 ,sec4 #b4 ,c]ta9       
improvem5ts 9 ! e>n$ income tax cr$it   
made p]man5t4 ,sec4 #c4 ,/r5g!n+ ! e>n$ 

income tax cr$it = individuals ) no     
qualify+ *ildr54 ,sec4 #d4 ,taxpay]     
eligible = cr$it = individuals ) no     
qualify+ *ildr5 if qualify+ *ildr5 d n h
 valid ,social ,security numb]4 ,sec4   
#e4 ,cr$it all[$ 9 case ( c]ta9 sep>at$ 
sp\ses4 ,sec4 #f4 ,taxpay] eligible =   
cr$it )\t qualify+ *ild if qualify+ *ild
 claim$ by ano!r memb] ( family4 ,sec4  
#g4 ,elim9ation ( disqualifi$ inve/m5t  
income te/4  #b4 ,c]ta9 improvem5ts 9 ! 
e>n$ income tax cr$it made p]man5t  7a7 
,increase 9 cr$it p]c5tage = ?ree or m  
qualify+ *ildr5 made p]man5t ,p>agraph  
7#a7 ( section #cb7;b7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  7#a7 ,p]c5tages ,! cr$it      
p]c5tage & ! phase\t p]c5tage %all be   
det]m9$ 9 accordance ) ! foll[+ table3  
,9 ! case ( an eligible individual )3,! 
cr$it p]c5tage is3,! phase\t p]c5tage   
is3  #a qualify+ *ild#cdae4ih  #b       
qualify+ *ildr5#djba4jf  #c or m        
qualify+ *ildr5#deba4jf  ,no qualify+   
*ildr5#g4feg4fe  4  7b7 ,r$uction (     

m>riage p5alty made p]man5t  7#a7 ,9    
g5]al ,subp>agraph 7,b7 ( section       
#cb7;b77#b7 ( su* ,code is am5d$ to read
 z foll[s3  7,b7 ,jo9t returns  7i7 ,9  
g5]al ,9 ! case ( a jo9t return fil$ by 
an eligible individual & su*            
individual's sp\se1 ! phase\t am\nt     
det]m9$ "u subp>agraph 7,a7 %all be     
increas$ by #e1jjj4  7ii7 ,inflation    
adju/m5t ,9 ! case ( any taxable ye>    
beg9n+ aft] #bjab1 ! #e1jjj am\nt 9     
clause 7i7 %all be increas$ by an am\nt 
equal to--  7,i7 su* doll> am\nt1       
multipli$ by  7,,ii7 ! co/ ( liv+       
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! taxable ye> beg9s 
det]m9$ by sub/itut+ cal5d> ye> #bjji = 
cal5d> ye> #aiib 9 subp>agraph 7,b7     
!re(4  7iii7 ,r\nd+ ,subp>agraph 7,a7 ( 
subsection 7j77#b7 %all apply aft] tak+ 
into acc\nt any increase "u clause 7ii74
  4  7c7 ,con=m+ am5dm5t ,subsection 7b7
 ( section #cb ( su* ,code is am5d$ by  
/rik+ p>agraph 7#c74  7d7 ,effective    
date ,! am5dm5ts made by ?is section    

%all apply to taxable ye>s beg9n+ aft] !
 date ( ! enactm5t ( ?is ,act4  #c4     
,/r5g!n+ ! e>n$ income tax cr$it =      
individuals ) no qualify+ *ildr5  7a7   
,cr$it = c]ta9 individuals ov] age #ba  
7#a7 ,9 g5]al ,p>agraph 7#a7 ( section  
#cb7;c7 ( ! ,int]nal ,rev5ue ,code (    
#aihf is am5d$ by add+ at ! end ! foll[+
 new subp>agraph3  7,g7 ,special rule = 
work+ individuals ov] age #bj & )\t     
qualify+ *ild  7i7 ,9 g5]al ,9 ! case ( 
an individual 7or1 if ! individual is   
m>ri$1 ei!r ! individual or !           
individual's sp\se7 :o--  7,i7 has      
atta9$ ! age ( #ba b n atta9$ age #be   
be=e ! close ( ! taxable ye>1 &  7,,ii7 
is n a full-"t /ud5t at any "t dur+ !   
taxable ye>1  p>agraph                  
7#a77;,a77ii77,,ii7 %all n apply =      
purposes ( det]m9+ :e!r su* individual  
is an eligible individual4  7ii7 ,/ud5t 
,= purposes ( ?is subp>agraph1 an       
individual %all be consid]$ a full-"t   
/ud5t if su* individual is c>ry+ m ?an  
#a_/b ! normal full-"t "w load = ! c\rse

 ( /udy ! individual is pursu+4  4  7#b7
 ,in=mation return mat*+ ,n lat] ?an #a 
ye> aft] ! date ( ! enactm5t ( ?is ,act1
 ! ,secret>y ( ! ,treasury %all develop 
& implem5t proc$ures = *eck+ an         
individual's claim = a cr$it "u section 
#cb ( ! ,int]nal ,rev5ue ,code ( #aihf1 
by reason ( subsection 7c77#a77;,g7     
!re(1 aga9/ any in=mation return made ) 
respect to su* individual "u section    
#fjej,s 7relat+ to returns relat+ to    
high] education tuition & relat$        
exp5ses74  7b7 ,increas$ cr$it  7#a7    
,cr$it p]c5tage & phase\t p]c5tage ,!   
table conta9$ 9 section #cb7;b77#a77;,a7
 ( su* ,code1 z am5d$ by ?is ,act1 is   
am5d$ by /rik+ #g4fe ea* place x appe>s 
& ins]t+ #ae4c4  7#b7 ,e>n$ income am\nt
 & phase\t am\nt  7,a7 ,9 g5]al ,! table
 conta9$ 9 section #cb7;b77#b77;,a7 (   
su* ,code is am5d$--  7i7 by /rik+      
#d1bbj & ins]t+ #h1hbj1 &  7ii7 by /rik+
 #e1bhj & ins]t+ #aj1dbe4  7,b7         
,inflation adju/m5ts ,subp>agraph 7,b7 (
 section #cb7;j77#a7 ( su* ,code is     

am5d$--  7i7 by ins]t+ except z provid$ 
9 clause 7iii7 9 clause 7i7 be=e 9 !    
case ( am\nts1  7ii7 by /rik+ & at ! end
 ( clause 7i71 by /rik+ ! p]iod at ! end
 ( clause 7ii7 & ins]t+ 1 &1 & by add+  
at ! end ! foll[+ new clause3  7iii7 9 !
 case ( ! #h1hbj & #aj1dbe am\nts 9     
subsection 7b77#b77;,a71 by sub/itut+   
cal5d> ye> #bjab = cal5d> ye> #aiib 9   
subp>agraph 7,b7 ( su* section #a4  4   
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #d4 ,taxpay] eligible = cr$it =  
individuals ) no qualify+ *ildr5 if     
qualify+ *ildr5 d n h valid ,social     
,security numb]  7a7 ,9 g5]al           
,subp>agraph 7,f7 ( section #cb7;c77#a7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ to read z foll[s3  7,f7           
,individuals :o d n include ,,t91 etc41 
( any qualify+ *ild ,9 ! case ( any     
eligible individual :o has "o or m      
qualify+ *ildr51 if--  7i7 no qualify+  
*ild ( su* individual is tak5 into      

acc\nt "u subsection 7b7 by reason (    
p>agraph 7#c77;,d71 &  7ii7 no *ild (   
su* individual is tak5 into acc\nt =    
purposes ( any o!r *ild tax b5efit "u   
?is *apt]1  = purposes ( ! cr$it all[$  
"u ?is section1 su* individual may be   
consid]$ an eligible individual )\t a   
qualify+ *ild4  4  7b7 ,effective date  
,! am5dm5t made by ?is section %all     
apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjab4  #e4 ,cr$it all[$ 9
 case ( c]ta9 sep>at$ sp\ses  7a7 ,9    
g5]al ,subsection 7d7 ( section #cb ( ! 
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7#a7 by /rik+ ,m>ri$           
individuals4--,9 ! case ( & ins]t+ !    
foll[+3  ,m>ri$ individuals4-- 7#a7 ,9  
g5]al ,9 ! case (  1 &  7#b7 by add+ at 
! end ! foll[+ new p>agraph3  7#b7      
,special rule = sep>at$ sp\se ,an       
individual %all n be treat$ z m>ri$ =   
purposes ( ?is section if su*           
individual--  7,a7 is m>ri$ 7)9 ! mean+ 
( section #ggjc7;a77 & files a sep>ate  
return = ! taxable ye>1  7,b7 lives ) a 

qualify+ *ild ( ! individual = m ?an    
"o-half ( su* taxable ye>1 &  7,c7 7i7  
dur+ ! la/ #f mon?s su* taxable ye>1    
does n h ! same pr9cipal place ( abode z
 ! individual's sp\se1 or  7ii7 has a   
legally b9d+ sep>ation agreem5t ) !     
individual's sp\se & is n a memb] ( !   
same h\sehold ) ! individual's sp\se by 
! end ( ! taxable ye>4  4  7b7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #f4 ,taxpay] eligible = cr$it )\t
 qualify+ *ild if qualify+ *ild claim$  
by ano!r memb] ( family  7a7 ,9 g5]al   
,p>agraph 7#a7 ( section #cb7;c7 ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new           
subp>agraph3  7,g7 ,taxpay] eligible =  
cr$it )\t qualify+ *ild if qualify+ *ild
 claim$ by ano!r memb] ( family  7i7 ,9 
g5]al ,if--  7,i7 an individual is      
claim$ z a qualify+ *ild by an eligible 
individual = any taxable ye> ( su*      
eligible individual beg9n+ 9 a cal5d>   

ye>1 &  7,,ii7 su* individual is !      
qualify+ *ild ( ano!r eligible          
individual = any taxable ye> beg9n+ 9   
su* cal5d> ye>1  su* o!r eligible       
individual may be treat$ z an eligible  
individual )\t a qualify+ *ild =        
purposes ( ?is section = su* taxable    
ye>4  7ii7 ,exception = qualify+ *ild   
claim$ by p>5t ,if an individual is     
claim$ z a qualify+ *ild = any taxable  
ye> by a p>5t ( su* *ild1 clause 7i7    
%all n apply ) respect to any o!r       
cu/odial p>5t ( su* *ild4  4  7b7       
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #g4 ,elim9ation ( disqualifi$    
inve/m5t income te/  7a7 ,9 g5]al       
,section #cb ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by /rik+ subsection    
7i74  7b7 ,con=m+ am5dm5ts  7#a7        
,section #cb7;j77#a77;,b77i7 ( su* ,code
 is am5d$ by /rik+ subsections          
7b77#b77;,a7 & 7i77#a7 & ins]t+         
subsection 7b77#b77;,a74  7#b7 ,section 

#cb7;j77#b7 ( su* ,code is am5d$--  7,a7
 by /rik+ p>agraph 7#b71 &  7,b7 by     
/rik+ ,r\nd+4-- & all t foll[s ?r\gh ,if
 any doll> am\nt & ins]t+ !             
foll[+3,r\nd+4--,if any doll> am\nt  7c7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s     
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4