,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #adff  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #i1 #bjag,ms4    
,cl>k ( ,massa*usetts 7= h]self1 ,mr4   
,nolan1 ,ms4 ,sn*ez1 ,ms4 ,lee1 ,mr4    
,swalwell ( ,cali=nia1 ,mr4             
,de,saulnier1 ,ms4 ,norton1 ,mr4 ,ru%1  
,mr4 ,ellison1 ,mr4 ,soto1 & ,mr4       
,cleav]7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to provide a high quality
 *ild c>e tax cr$it1 & = o!r purposes4  
#a4 ,%ort title ,?is ,act may be cit$ z 
! #ba/ ,c5tury ,*ild ,c>e ,inve/m5t     
,act4  #b4 ,high quality *ild c>e tax   
cr$it  7a7 ,9 g5]al ,subp>t ,a ( "p ,,iv
 ( sub*apt] ,a ( *apt] #a ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 be=e section #bf ! foll[+ new section3 
#be;,e4 ,high quality *ild c>e cr$it    
7a7 ,9 g5]al ,9 ! case ( an individual  
:o elects ! application ( ?is section = 
! taxable ye>1 !re %all be all[$ z a    
cr$it aga9/ ! tax impos$ by ?is *apt] an

 am\nt equal to ! applicable am\nt (    
high quality *ild c>e exp5ses paid by   
su* individual dur+ ! taxable ye> )     
respect to a qualify+ *ild4  7b7        
,limitation  7#a7 ,9 g5]al ,! am\nt ( ! 
high quality *ild c>e exp5ses :i* may be
 tak5 into acc\nt "u subsection 7a7 )   
respect to ea* qualify+ *ild ( ! taxpay]
 %all n exce$--  7,a7 #ad1jjj = ea*     
qualify+ *ild :o has n atta9$ ! age ( #c
 by ! end ( ! taxable ye>1 &  7,b7      
#e1jjj = ea* qualify+ *ild :o has atta9$
 ! age ( #c by ! end ( ! taxable ye>4   
7#b7 ,adju/$ gross income limitation ,! 
doll> limitation "u p>agraph 7#a7--     
7,a7 %all be z]o "u subp>agraph 7,a7    
!re( 9 ! case ( a taxpay] ^: adju/$     
gross income = ! taxable ye> exce$s an  
am\nt equal to #djj p]c5t ( ! pov]ty    
l9e1 &  7,b7 %all be z]o "u subp>agraph 
7,b7 !re( 9 ! case ( a taxpay] ^: adju/$
 gross income = ! taxable ye> exce$s an 
am\nt equal to #bjj p]c5t ( ! pov]ty    
l9e4  7c7 ,portion ( cr$it refundable   
7#a7 ,9 g5]al ,! aggregate cr$its all[$ 

to a taxpay] "u subp>t ,c %all be       
increas$ by ! diff]5ce (--  7,a7 ! cr$it
 :i* w\ld be all[$ "u ?is section )\t   
reg>d to ?is subsection & ! limitation  
"u section #bf7;a71 ov]  7,b7 !         
taxpay]'s applicable family             
contribution4  ,! am\nt ( ! cr$it all[$ 
"u ?is subsection %all n be treat$ z a  
cr$it all[$ "u ?is subp>t & %all r$uce !
 am\nt ( cr$it o!rwise all[able "u      
subsection 7a7 )\t reg>d to section     
#bf7;a74  7#b7 ,applicable family       
contribution ,= purposes ( ?is          
subsection--  7,a7 ,9 g5]al ,! taxpay]'s
 applicable family contribution = a     
taxable ye> %all be ! sum ( ! am\nts    
det]m9$ "u subp>agraph 7,b7 ) respect to
 ea* qualify+ *ild ( ! taxpay] = :i*    
high quality *ild c>e exp5ses are tak5  
into acc\nt "u ?is section = ! taxable  
ye>4  7,b7 ,am\nts det]m9$ ,! am\nt )   
respect to a qualify+ *ild "u ?is       
subp>agraph %all be det]m9$ z foll[s3   
7i7 ,9 ! case ( a qualify+ *ild :o has n
 atta9$ age #c3 ,if ! taxpay]'s adju/$  

gross income = ! taxable ye> is !       
following,multiply su* adju/$ p]c5tage (
 ! pov]ty l9e3gross income by3 ,n m ?an 
#acc p]c5t #b p]c5t ,m ?an #acc p]c5t b 
n m ?an #aej p]c5t#f p]c5t ,m ?an #aej  
p]c5t b n m ?an #bjj p]c5t#h p]c5t ,m   
?an #bjj p]c5t b n m ?an #bej p]c5t#aj  
p]c5t ,m ?an #bej p]c5t#ab p]c5t4  7ii7 
,9 ! case ( a qualify+ *ild :o has      
atta9$ age #c3  ,if ! taxpay]'s adju/$  
gross income = !  taxable ye> is !      
following,multiply su* adju/$  p]c5tage 
( ! pov]ty l9e3gross income by3  ,n m   
?an #acc p]c5t #b p]c5t ,m ?an #acc     
p]c5t b n m ?an #aej p]c5t#f p]c5t ,m   
?an #aej p]c5t b n m ?an #bjj p]c5t#h   
p]c5t4  7d7 ,def9itions ,= purposes (   
?is section-- 7#a7 ,qualify+ *ild ,! t]m
 qualify+ *ild means a dep5d5t ( !      
taxpay] 7z def9$ 9 section #aeb7;a77#a77
 :o has n atta9$ age #e4  7#b7 ,high    
quality *ild c>e exp5ses  7,a7 ,9 g5]al 
,! t]m high quality *ild c>e exp5ses    
means employm5t-relat$ exp5ses 7z def9$ 
9 section #ba7;b77#b77;,a77 = s]vices   

provid$ by a high quality *ild c>e c5t]4
  7,b7 ,high quality *ild c>e c5t] ,!   
t]m high quality *ild c>e c5t] means any
 facility1 includ+ family *ild c>e      
homes1 :i*-- 7i7 receives a fee1 paym5t1
 or grant = provid+ c>e = qualifi$      
*ildr5 7o!r ?an j *ildr5 :o reside at ! 
facility & reg>dless ( :e!r su* facility
 is op]at$ = pr(it71  7ii7 meets ! ,/ate
 lic5s+ requirem5ts = provid+ c>e to    
qualifi$ *ildr51 &  7iii7 9 ! case (    
taxable ye>s beg9n+ m ?an #e ye>s aft] !
 date ( ! enactm5t ( ?is section--  7,i7
 meets ! high quality rat+ requirem5ts  
"u ! quality rat+ & improvem5t sy/em ( !
 ,/ate )9 :i* ! c>e ( ! qualify+ *ild is
 provid$1 or  7,,ii7 is c]tifi$ by !    
,secret>y ( ,heal? & ,human ,s]vices "u 
su* /&>ds z ! ,secret>y ( ,heal? &      
,human ,s]vices1 9 consultation ) !     
,secret>y1 %all by regulation prescribe4
  7,c7 ,quality ,rat+ & ,improvem5t     
,sy/em ,! t]m quality rat+ & improvem5t 
sy/em means a sy/em ?r\gh :i* a ,/ate   
uses a set ( progressively high] program

 /&>ds to evaluate ! quality ( an e>ly  
*ildhood program & to support program   
improvem5t4 ,any su* program %all       
include ! foll[+3  7i7 ,ti]$ ,program   
,/&>ds ) multiple rat+ categories t     
cle>ly & mean+fully diff]5tiate program 
quality levels4  7ii7 ,monitor+ to      
evaluate program quality bas$ on !      
program /&>ds det]m9$ by ! ,/ate4  7iii7
 ,support to help programs & ! *ild c>e 
work=ce meet progressively high] /&>ds  
7includ+ ?r\gh tra9+1 te*nical          
assi/ance1 & f9ancial support1 &        
facilitat+ p>ticipation 9 organizations 
t fo/] pr(essional developm5t74  7iv7   
,program quality rat+s t are publically 
available & a process = validat+ !      
sy/em4  7,d7 ,high quality rat+         
requirem5t  7i7 ,9 g5]al ,a facility    
%all be treat$ z meet+ ! high quality   
rat+ requirem5ts ( a ,/ate's quality    
rat+ & improvem5t sy/em if ! facility is
 rat$ 9 ! top ti] by a ,/ate ) a #c-ti] 
rat+ sy/em or 9 ! top #b ti]s by a ,/ate
 ) a #d- or #e-ti] rat+ sy/em4 ,a       

facility %all n be treat$ z meet+ !     
requirem5ts ( ! prec$+ s5t5ce unless !  
,/ate's rat+ sy/em includes comp5sation 
/&>ds updat$ at lea/ e #c ye>s "u ! /udy
 requir$ "u clause 7ii74  7ii7 ,/udy on 
! co/ ( high quality *ild c>e ,a ,/ate  
%all n be treat$ z hav+ a rat+ sy/em =  
purposes ( clause 7i7 unless ! ,/ate    
conducts a /udy on ! co/ ( high quality 
*ild c>e at lea/ once e #c ye>s to      
analyze co/s associat$ ) deliv]+ high   
quality *ild c>e includ+--  7,i7 an     
assessm5t ( ! comp5sation levels        
suffici5t to recruit & reta9 a qualifi$ 
& div]se *ild c>e work=ce & all[        
entry-level *ild c>e /aff to ma9ta9 a   
secure /&>d ( liv+ & meet _! families'  
ess5tial ne$s1 &  7,,ii7 in=mation ga!r$
 ?r\gh a public he>+ to solicit input f 
relevant /akehold]s includ+ ! *ild c>e  
work=ce4  7#c7 ,pov]ty l9e  7,a7 ,9     
g5]al ,! t]m pov]ty l9e has ! mean+ giv5
 su* t]m 9 section #fgc7b7 ( !          
,community ,s]vices ,block ,grant ,act  
7#db ,u4,s4,c4 #iijb7b771 includ+ any   

revision requir$ by su* section4 ,!     
pov]ty l9e det]m9$ ) respect to taxpay] 
%all be ! pov]ty l9e = a family ( ! size
 involv$4  7,b7 ,family size ,! family  
size involv$ ) respect to any taxpay]   
%all be equal to ! numb] ( individuals =
 :om ! taxpay] is all[$ a d$uction "u   
section #aea 7relat+ to all[ance (      
d$uction = p]sonal exemptions7 = !      
taxable ye>4  7e7 ,special rules  7#a7  
,advance paym5t program  7,a7 ,9 g5]al  
,! ,secret>y ( ! ,treasury1 9           
consultation ) ! ,secret>y ( ,heal? &   
,human ,s]vices1 %all e/abli% a         
program--  7i7 to make advance          
det]m9ations ) respect to ! eligibility 
( individuals = ! cr$it all[$ "u ?is    
section1 &  7ii7 to make mon?ly advance 
paym5ts ( ! cr$it all[$ "u ?is section1 
at ! election ( ! taxpay]1 directly to a
 high quality *ild c>e c5t] provid+ c>e 
= a qualify+ *ild ( ! taxpay]4  7,b7    
,reconciliation ( cr$it & advance paym5t
  7i7 ,9 g5]al ,! am\nt ( ! cr$it all[$ 
"u ?is section = any taxable ye> %all be

 r$uc$ 7b n bel[ z]o7 by ! am\nt ( any  
advance paym5t ( su* cr$it "u           
subp>agraph 7,a74  7ii7 ,excess advance 
paym5ts ,if ! advance paym5ts to a      
taxpay] "u subp>agraph 7,a7 = a taxable 
ye> exce$ ! cr$it all[$ by ?is section  
7det]m9$ )\t reg>d to subp>agraph 7,a771
 ! tax impos$ by ?is *apt] = ! taxable  
ye> %all be increas$ by ! am\nt ( su*   
excess4  7iii7 ,limitation on increase  
7,i7 ,9 g5]al ,9 ! case ( a taxpay] ^:  
tax is increas$ 7det]m9$ )\t reg>d to   
?is clause7 = ! taxable ye> "u clause   
7ii7 ) respect to a qualifi$ *ild1 su*  
increase %all n exce$ ! applicable doll>
 am\nt det]m9$ 9 accordance ) ! table "u
 subclause 7,i7 9 ! case ( any portion (
 ! cr$it det]m9$ ) respect to a qualify+
 *ild :o has n atta9$ ! age ( #c by !   
end ( ! taxable ye>1 & 9 accordance ) ! 
table "u subclause 7,,ii7 9 ! case ( any
 portion ( ! cr$it det]m9$ ) respect to 
a qualify+ *ild :o has atta9$ ! age ( #c
 by ! end ( ! taxable ye>4  7,,ii7 ,"u  
age #c ,! table "u ?is subclause is z   

foll[s3 ,if ! adju/$ gross income       
7express$ z a p]c5t ,! applicable doll> 
( pov]ty l9e7 is3am\nt is3 ,less ?an    
#djj p]c5t#fjj ,at lea/ #djj p]c5t b    
less ?an #ejj p]c5t#a1ejj ,at lea/ #ejj 
p]c5t b less ?an #fjj p]c5t#b1ejj4      
7,,iii7 ,age #c & #d ,! table "u ?is    
subclause is z foll[s3  ,if ! adju/$    
gross income  7express$ z a p]c5t ,!    
applicable doll>  ( pov]ty l9e7 is3am\nt
 is3  ,less ?an #bjj p]c5t#fjj ,at lea/ 
#bjj p]c5t b less ?an #cjj p]c5t#a1ejj  
,at lea/ #cjj p]c5t b less ?an #djj     
p]c5t#b1ejj4  7,c7 ,inflation adju/m5t  
7i7 ,9 g5]al ,9 ! case ( any taxable ye>
 beg9n+ aft] #bjag1 ! doll> am\nts 9    
subsection 7b77#a7 %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> #bjaf =
 cal5d> ye> #aiib 9 subp>agraph 7,b7    
!re(4  7ii7 ,r\nd+ ,if ! doll> am\nt 9  
subsection 7b77#a71 aft] be+ increas$ "u

 clause 7i71 is n a multiple ( #ajj1 su*
 am\nt %all be r\nd$ to ! next l[e/     
multiple ( #ajj4  7#b7 ,in=mation       
requirem5ts ,ea* high quality *ild c>e  
c5t] :i* receives paym5ts f ! ,secret>y 
"u p>agraph 7#a7 %all = ea* cal5d> ye>  
provide ! foll[+ in=mation to !         
,secret>y & to ! taxpay] ) respect to ! 
*ild = :i* su* paym5ts 7 made3  7,a7 ,! 
total co/ ( c>e = su* *ild = su* ye>    
7det]m9$ )\t reg>d to ! cr$it "u ?is    
section74  7,b7 ,! aggregate am\nt ( any
 advance paym5t ( su* cr$it made )      
respect to su* *ild4  7,c7 ,! "n1       
address1 age1 & ,,t9 ( ! taxpay] & !    
*ild4  7,d7 ,any in=mation provid$ to   
su* p]son necess>y to det]m9e           
eligibility =1 & ! am\nt (1 su* cr$it4  
7#c7 ,coord9ation ) o!r dep5d5t c>e     
provisions  7,a7 ,dep5d5t c>e cr$it ,no 
cr$it %all be all[$ "u section #ba = any
 taxable ye> = :i* ! taxpay] elects !   
application ( ?is section4  7,b7        
,dep5d5t c>e programs ,! am\nt tak5 into
 acc\nt "u subsection 7a7 ) respect to a

 qualify+ *ild %all be r$uc$ by !       
aggregate am\nt excludable f gross      
income "u section #abi = ! taxable ye> )
 respect to su* *ild4  7#d7 ,rules      
relat+ to m>riage & paym5ts to relat$   
individuals ,rules simil> to ! rules (  
p>agraphs 7#b71 7#c71 7#d71 & 7#f7 (    
section #ba7;e7 %all apply = purposes ( 
?is section4  4  7b7 ,con=m+ am5dm5t    
,section #acbd7;b77#b7 ( title #ca1     
,unit$ ,/ates ,code1 is am5d$ by ins]t+ 
#be;,e1 aft] #be;,a14  7c7 ,cl]ical     
am5dm5t ,! table ( sections = subp>t ,a 
( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su*
 ,code is am5d$ by ins]t+ be=e ! item   
relat+ to section #bf ! foll[+ new item3
  ,sec4 #be;,e4 ,high quality *ild c>e  
cr$it4  4  7d7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjaf4  #c4 ,portion ( dep5d5t c>e 
cr$it made refundable  7a7 ,9 g5]al     
,section #ba ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by r$esignat+          
subsection 7f7 z subsection 7g7 & by    

ins]t+ aft] subsection 7e7 ! foll[+ new 
subsection3  7f7 ,portion ( cr$it       
refundable ,! aggregate cr$its all[$ to 
a taxpay] "u subp>t ,c %all be increas$ 
by ! less] (-- 7#a7 ! cr$it :i* w\ld be 
all[$ "u ?is section )\t reg>d to ?is   
subsection & ! limitation "u section    
#bf7;a71 or  7#b7  7,a7 9 ! case ( a    
taxpay] ) #a qualify+ *ild1 #a1jej1 or  
7,b7 9 ! case ( a taxpay] ) m ?an #a    
qualify+ *ild1 #b1ajj4  ,! am\nt ( !    
cr$it all[$ "u ?is subsection %all n be 
treat$ z a cr$it all[$ "u ?is subp>t &  
%all r$uce ! am\nt ( cr$it o!rwise      
all[able "u subsection 7a7 )\t reg>d to 
section #bf7;a74  4  7b7 ,cl]ical       
am5dm5t ,section #acbd7;b77#b7 ( title  
#ca1 ,unit$ ,/ates ,code1 is am5d$ by   
ins]t+ #bd1 be=e #be;,a14  7c7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjaf4