,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bcij  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #bb1 #bjad
 ,ms4 ,heitkamp 7for herself and ,mr4   
,kaine7 introduced the following bill2  
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
amend the ,internal ,revenue ,code of   
#aihf to create a tax credit for foster 
families4  #a4 ,short title ,this ,act  
may be cited as the ,foster ,care ,tax  
,credit ,act4  #b4 ,foster care tax     
credit  7a7 ,in general ,subpart ,a of  
part ,,iv of subchapter ,a of chapter #a
 of the ,internal ,revenue ,code of     
#aihf is amended by inserting after     
section #be;,d the following new        
section3  #be;,e4 ,foster care tax      
credit  7a7 ,allowance of credit ,with  
respect to each qualifying foster child 
of an eligible taxpayer1 for each       
calendar month occurring during the     
taxable year that such child resides in 
the home of such taxpayer1 there shall  
be allowed as a credit against the tax  

imposed by this chapter for the taxable 
year an amount equal to #a_/ab of the   
amount determined under subsection 7b74 
7b7 ,amount determined  7#a7 ,in general
 ,the amount determined under this      
subsection with respect to an eligible  
taxpayer and a taxable year is-- 7,a7   
#a1jjj1 reduced by  7,b7 #ej for each   
#a1jjj 7or fraction thereof7 by which   
the eligible taxpayer's modified        
adjusted gross income exceeds the       
threshold amount4  ,for purposes of the 
preceding sentence1 the term modified   
adjusted gross income means adjusted    
gross income increased by any amount    
excluded from gross income under section
 #iaa1 #ica1 or #icc4  7#b7 ,threshold  
amount ,for purposes of paragraph 7#a71 
the term threshold amount has the       
meaning given such term by section      
#bd7;b77#b74  7c7 ,qualifying foster    
child ,for purposes of this section1 the
 term qualifying foster child means an  
eligible foster child 7within the       
meaning of section #aeb7;f77#a77;,c77 of

 the eligible taxpayer-- 7#a7 who has   
not attained age #ag1  7#b7 who is a    
citizen1 national1 or resident of the   
,united ,states1  7#c7 who resides in   
the home of the eligible taxpayer for   
not less than #a calendar month during  
the taxable year1 and  7#d7 with respect
 to whom the credit under section #bd is
 not allowable to the eligible taxpayer 
or any other taxpayer who would be an   
eligible taxpayer but for paragraph 7#c7
 of subsection 7d74  7d7 ,eligible      
taxpayer ,for purposes of this section1 
the term eligible taxpayer means any    
taxpayer1 except that-- 7#a7 no single  
household shall include more than #a    
eligible taxpayer1  7#b7 married        
individuals filing a joint return shall 
be treated as #a eligible taxpayer1 and 
7#c7 in the case of individuals not     
described in paragraph 7#b7 who are     
members of the same household1 only the 
taxpayer with the highest adjusted gross
 income for the taxable year shall be   
treated as an eligible taxpayer4  7e7   

,calendar month ,for purposes of this   
section1 if a foster child resides in   
the home of the taxpayer for more than  
#ae consecutive days of a calendar month
 but fewer than the total number of days
 in such calendar month1 such foster    
child shall be treated as residing in   
the home of the taxpayer for the full   
calendar month4  7f7 ,portion of credit 
refundable  7#a7 ,in general ,the       
aggregate credits allowed to a taxpayer 
under subpart ,c shall be increased by  
the lesser of-- 7,a7 the credit which   
would be allowed under this section     
without regard to this subsection and   
the limitation under section #bf7;a7    
7determined after any reduction of the  
credit under section #bd7;a7 by reason  
of section #bd7;d771 or  7,b7 the amount
 by which the aggregate amount of       
credits allowed by this subpart         
7determined without regard to this      
subsection1 and after any reduction of  
the credit under section #bd7;a7 by     
reason of section #bd7;d77 would        

increase if the limitation imposed by   
section #bf7;a7 were increased by the   
greater of-- 7i7 #ae percent of so much 
of the taxpayer's earned income 7within 
the meaning of section #cb7 which is    
taken into account in computing taxable 
income for the taxable year as exceeds  
#aj1jjj1 or  7ii7 in the case of a      
taxpayer with #c or more qualifying     
foster children residing in the home of 
the taxpayer for all months in the      
taxable year 7without regard to whether 
the same #c children reside in the home 
of the taxpayer for all such months71   
the excess 7if any7 of-- 7,i7 the       
taxpayer's social security taxes for the
 taxable year1 over  7,,ii7 the credit  
allowed under section #cb for the       
taxable year4  ,the amount of the credit
 allowed under this subsection shall not
 be treated as a credit allowed under   
this subpart and shall reduce the amount
 of credit otherwise allowable under    
subsection 7a7 without regard to section
 #bf7;a74 ,for purposes of subparagraph 

7,b71 any amount excluded from gross    
income by reason of section #aab shall  
be treated as earned income which is    
taken into account in computing taxable 
income for the taxable year4  7#b7      
,social security taxes ,for purposes of 
paragraph 7#a71 the term social security
 taxes has the same meaning as when used
 in section #bd7;d77#a74  7#c7          
,inflation adjustment ,in the case of   
any taxable year beginning in a calendar
 year after #bjja1 the #aj1jjj amount   
contained in paragraph 7#a77;,b77i7     
shall be adjusted in the same manner as 
the #aj1jjj amount under section        
#bd7;d77#a77;,b7 is adjusted under      
section #bd7;d77#c74  7g7               
,identification requirement ,no credit  
shall be allowed under this section to  
an eligible taxpayer with respect to any
 qualifying foster child unless the     
taxpayer includes the name and taxpayer 
identification number of such qualifying
 foster child on the return of tax for  
the taxable year4  4  7b7 ,clerical     

amendment ,the table of sections for    
subpart ,a of part ,,iv of subchapter ,a
 of chapter #a of the ,internal ,revenue
 ,code of #aihf is amended by inserting 
after the item relating to section      
#be;,d the following new item3  ,sec4   
#be;,e4 ,foster care tax credit4  4  7c7
 ,effective date ,the amendments made by
 this section shall apply to calendar   
months beginning after ,december #ca1   
#bjac1 in taxable years beginning after 
such date4  7d7 ,education ,the         
,secretary of ,health and ,human        
,services 7or the ,secretary's          
delegate71 in coordination with the     
,secretary of the ,treasury or such     
,secretary's delegate1 shall identify   
provisions in the ,internal ,revenue    
,code of #aihf that can be used by or   
can benefit foster families1 and shall  
increase outreach efforts to provide    
information and educational materials   
regarding such provisions to ,state and 
,indian tribal foster care agencies and 
to foster families4