,i  #aae? ,,congress  #b;d ,session  ,h4
 ,r4 #fhgc  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,septemb] #be1        
#bjah,mrs4 ,watson ,coleman 7= h]self1  
,mr4 ,khanna1 ,mr4 ,ryan ( ,ohio1 ,mr4  
,grijalva1 ,ms4 ,norton1 ,mr4 ,soto1    
,ms4 ,cl>ke ( ,new ,york1 ,ms4 ,jackson 
,lee1 ,ms4 ,bass1 ,ms4 ,b>ragn1 ,mr4    
,lawson ( ,florida1 ,ms4 ,jayapal1 ,mr4 
,?ompson ( ,mississippi1 & ,mr4 ,rask97 
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to ext5d ! e>n$ income tax
 cr$it to all taxpay]s ) dep5d5ts & to  
qualify+ /ud5ts1 & = o!r purposes4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,,eitc ,mod]nization ,act ( #bjah4  #b4 
,f9d+s ,congress f9ds ! foll[+3  7#a7 ,!
 ,f$]al e>n$ income tax cr$it is a      
refundable tax cr$it = l[]- &           
middle-income work+ individuals &       
families ^: e>n+s are bel[ an income    
?re%old4  7#b7 ,s9ce its e/abli%m5t 9   
#aige1 ! cr$it has increas$ family      

income1 r$uc$ *ild pov]ty1 & promot$    
employm5t by supplem5t+ ! e>n+s (       
l[-wage work]s1 includ+ milit>y         
families4  7#c7 ,! cr$it has a positive 
impact on ! education & heal? ( *ildr5  
liv+ 9 pov]ty4  7#d7 ,! cr$it has a     
positive economic impact on local       
economies & bus9esses because x puts m  
money 9 ! h&s ( l[- & middle-income     
work+ p :o sp5d ! money on imm$iate     
ne$s1 su* z groc]ies1 s*ool supplies1 c>
 repairs1 r5t1 & heal? c>e4  7#e7 ,!    
wid5+ gap betwe5 ! incomes ( ! weal?ie/ 
,am]icans & ^? ( middle- & l[]-income   
,am]icans is al>m+4  7#f7 ,!re is an    
urg5t ne$ to address t gap1 includ+     
?r\gh measures l ?is legislation & by   
rais+ ! ,f$]al m9imum wage :i* toge!r   
increase ! wages ( work+ ,am]icans1 wid5
 ! pa? to income /ability1 & n>r[ income
 inequality4  #c4 ,modifications ( !    
e>n$ income tax cr$it  7a7 ,inclusion ( 
individuals ) qualify+ dep5d5ts  7#a7 ,9
 g5]al ,section #cb7;c77#a77;,a7 ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 

by /rik+ qualify+ *ild ea* place su* t]m
 appe>s & ins]t+ qualify+ dep5d5t4  7#b7
 ,qualify+ dep5d5t def9$ ,section       
#cb7;c77#a7 ( su* ,code is am5d$ by     
/rik+ subp>agraphs 7,b7 & 7,f71 & by    
r$esignat+ subp>agraphs 7,c7 & 7,d7 z   
subp>agraphs 7,b7 & 7,c71 respectively1 
by r$esignat+ subp>agraph 7,e7 z        
subp>agraph 7,f71 & by add+ at ! end !  
foll[+ new subp>agraphs3  7,d7 ,qualify+
 dep5d5t  7i7 ,! t]m qualify+ dep5d5t   
means1 ) respect to a taxable ye>-- 7,i7
 a qualify+ *ild1 or  7,,ii7 an ag$ or  
disabl$ dep5d5t4  7ii7 ,id5tification   
requirem5ts ,! t]m qualify+ dep5d5t %all
 n include an individual unless--  7,i7 
! taxpay] includes ! "n1 age1 & ,,t9 ( !
 individual on ! return ( tax = !       
taxable ye>1 &  7,,ii7 su* individual   
has a pr9cipal place ( abode 9 ! ,unit$ 
,/ates = m ?an "o-half ( su* taxable    
ye>4  7,e7 ,ag$ or disabl$ dep5d5t ,!   
t]m ag$ or disabl$ dep5d5t means a      
dep5d5t = :om a d$uction is all[able "u 
section #aea :o-- 7i7 has atta9$ ! age (

 #fe be=e ! close ( ! taxable ye>1 or   
7ii7 is det]m9$ to be "u a disability "u
 title ,,ii or ,,xvi ( ! ,social        
,security ,act at any po9t dur+ su*     
taxable ye>4  4  7#c7 ,con=m+ am5dm5ts  
7,a7 ,! tables 9 p>agraphs 7#a7 & 7#b7 (
 section #cb7;b7 ( su* ,code are am5d$  
by /rik+ qualify+ *ild ea* place su* t]m
 appe>s & ins]t+ qualify+ dep5d5t & by  
/rik+ qualify+ *ildr5 ea* place su* t]m 
appe>s & ins]t+ qualify+ dep5d5ts4  7,b7
 ,section #cb7;c77#c7 ( su* ,code is    
am5d$ by /rik+ subp>agraphs 7,c7 & 7,d74
  7,c7 ,section #cb7m7 ( su* ,code is   
am5d$ by /rik+ 7c77#c77;,d7 & ins]t+    
7c77#a77;,g77ii74  7b7 ,inclusion (     
qualify+ /ud5ts  7#a7 ,9 g5]al ,section 
#cb7;c77#a77;,a7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by /rik+ or at ! 
end ( clause 7i71 by /rik+ ! p]iod at ! 
end ( clause 7ii77,,iii7 & ins]t+ 1 or1 
& by ins]t+ aft] clause 7ii77,,iii7 !   
foll[+ new clause3  7iii7 any individual
 :o is a qualify+ /ud5t4  4  7#b7       
,qualify+ /ud5t def9$ ,section          

#cb7;c77#a7 ( su* ,code1 z am5d$ by     
subsection 7a71 is fur!r am5d$ by add+  
at ! end ! foll[+ new subp>agraph3  7,g7
 ,qualify+ /ud5t ,! t]m qualify+ /ud5t  
means1 ) respect to mon? 9 a taxable    
ye>1 an individual :o is an eligible    
/ud5t 7z def9$ 9 section #be;,a7b77#c77 
) respect to an in/itution ( high]      
education 7z def9$ 9 section #aja ( !   
,high] ,education ,act ( #aife7 :o--    
7i7 is eligible = a ,f$]al ,pell ,grant 
) respect to ! academic ye> beg9n+ 9 su*
 taxable ye>1 &  7ii7 is n a dep5d5t =  
:om a d$uction is all[able "u section   
#aea to ano!r taxpay] = ! taxable ye>4  
4  7c7 ,m9imum cr$it am\nt = individuals
 ) qualify+ dep5d5ts & = qualify+ /ud5ts
 ,section #cb7;a77#a7 ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  7#a7 ,cr$it am\nt  7,a7 ,9    
g5]al ,9 ! case ( an eligible           
individual1 !re %all be all[$ z a cr$it 
aga9/ ! tax impos$ by ?is subtitle = !  
taxable ye> an am\nt equal to ! cr$it   
p]c5tage ( s mu* ( ! taxpay]'s e>n$     

income = ! taxable ye> z does n exce$ ! 
e>n$ income am\nt4  7,b7 ,m9imum cr$it  
am\nt = individuals ) dep5d5ts & =      
qualify+ /ud5ts ,9 ! case ( an eligible 
individual describ$ 9 clause 7i7 or     
7iii7 ( subsection 7c77#a77;,a71 !      
foll[+ provisions %all be appli$ by     
ins]t+ ! great] ( #a1bjj or be=e ! cr$it
 p]c5tage3  7i7 ,cr$it am\nt            
,subp>agraph 7,a74  7ii7 ,phase\t       
,p>agraph 7#b77;,a74  4  7d7 ,mon?ly    
paym5t ,section #cb ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by add+ at ! end
 ! foll[+ new subsection3  7n7 ,mon?ly  
paym5t  7#a7 ,9 g5]al ,9 ! case ( an    
individual entitl$ "u ?is section to a  
refund t exce$s #bdj1 su* individual may
 elect to h ! ,secret>y1 9 lieu ( su*   
refund1 make a paym5t equal to--  7,a7  
#b_/ac ( su* refund 7) int]e/7 dur+ !   
e>li] ( ! fir/ practicable mon? or !    
second mon? t beg9s aft] ! date ! return
 0 fil$1 &  7,b7 #a_/ac ( su* refund 7) 
int]e/7 dur+ ea* ( ! #aa mon?s subsequ5t
 to ! mon? det]m9$ "u subp>agraph 7,a74 

7#b7 ,me?od ( paym5t ,a paym5t made "u  
?is subsection %all be made by direct   
deposit or by g5]al-use prepaid c>d1 or 
by su* o!r me?od 7o!r ?an by *eck7 z !  
,secret>y may prescribe & ! taxpay] may 
elect4  7#c7 ,"o-"t increase ,! fir/ "t 
an individual receives a paym5t "u ?is  
subsection1 p>agraph 7#a77;,a7 %all be  
appli$ by sub/itut+ #d_/ac = #b_/ac4  4 
7e7 ,special rule = new l[-,income p>5ts
 ,section #cb ( ! ,int]nal ,rev5ue ,code
 ( #aihf1 aft] am5dm5t by subsection    
7c71 is fur!r am5d$ by add+ at ! end !  
foll[+ new subsection3  7o7 ,special    
rule = new l[-,income p>5ts ,9 ! case ( 
an individual :o-- 7#a7 has a qualify+  
*ild1 &  7#b7 is1 on ! date ( ! bir? 7or
 adoption by su* taxpay]7 ( su* *ild1   
eligible = a paym5t "u subsection       
7n77#a7 to be made aft] ! date t is "o  
mon? aft] su* date ( bir? or adoption by
 reason ( a return1  ! am\nt ( !        
subsequ5t paym5ts made "u subsection    
7n77#a7 by reason ( su* return %all be  
det]m9$ z if su* qualify+ *ild 7 a      

qualify+ *ild ( ! taxpay] ) respect to !
 taxable ye> = :i* su* return 0 fil$4 ,=
 purposes ( det]m9+ if a *ild is a      
qualify+ *ild = purposes ( ?is          
subsection1 subsection 7m7 %all be      
appli$ by ins]t+ or1 9 ! case ( an      
adoption1 su* o!r id5tify+ in=mation z  
specifi$ by ! ,secret>y be=e ! p]iod at 
! end4  4  7f7 ,decrease 9 m9imum age = 
individuals )\t dep5d5ts ,section       
#cb7;c77#a77;,a77ii77,,ii7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
age #be & ins]t+ age #ah4  7g7 ,return  
prep>ation programs = l[-,income        
taxpay]s  7#a7 ,9 g5]al ,*apt] #gg ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #gebf ! foll[+   
new section3  #gebf;,a4 ,return         
prep>ation programs = l[-income taxpay]s
  7a7 ,e/abli%m5t ( volunte] income tax 
assi/ance mat*+ grant program ,!        
,secret>y1 ?r\gh ! ,int]nal ,rev5ue     
,s]vice1 %all e/abli% a ,community      
,volunte] ,income ,tax ,assi/ance ,mat*+
 ,grant ,program "u :i* ! ,secret>y may1

 subject to ! availability ( appropriat$
 funds1 make grants to provide mat*+    
funds = ! developm5t1 expansion1 or     
cont9uation ( qualifi$ return prep>ation
 programs assi/+ l[-income taxpay]s &   
memb]s ( und]s]v$ populations4  7b7 ,use
 ( funds  7#a7 ,9 g5]al ,qualifi$ return
 prep>ation programs may use grants     
receiv$ "u ?is section =-- 7,a7 ord9>y &
 necess>y co/s associat$ ) program      
op]ation 9 accordance ) co/ pr9ciples "u
 ! applicable ,(fice ( ,managem5t &     
,budget circul>1 includ+--  7i7 wages or
 sal>ies ( p]sons coord9at+ ! activities
 ( ! program1  7ii7 develop+ tra9+      
mat]ials1 conduct+ tra9+1 & p]=m+       
quality reviews ( ! returns prep>$ "u ! 
program1  7iii7 equipm5t pur*ases1 &    
7iv7 vehicle-relat$ exp5ses associat$ ) 
remote or rural tax prep>ation s]vices1 
7,b7 outrea* & educational activities   
describ$ 9 subsection 7c77#b77;,b71 &   
7,c7 s]vices relat$ to f9ancial         
education & capability1 asset           
developm5t1 & ! e/abli%m5t ( sav+s      

acc\nts 9 connection ) tax return       
prep>ation4  7#b7 ,use ( grants =       
ov]head exp5ses prohibit$ ,no grant     
receiv$ "u ?is section may be us$ =     
ov]head exp5ses t are n directly relat$ 
to a qualifi$ return prep>ation program4
  7c7 ,application  7#a7 ,9 g5]al ,ea*  
applicant = a grant "u ?is section %all 
submit an application to ! ,secret>y at 
su* "t1 9 su* mann]1 & conta9+ su*      
in=mation z ! ,secret>y may reasonably  
require4  7#b7 ,priority ,9 aw>d+ grants
 "u ?is section1 ! ,secret>y %all give  
priority to applications :i*            
demon/rate--  7,a7 assi/ance to         
l[-income taxpay]s1 ) emphasis on       
outrea* to1 & s]vices =1 su* taxpay]s1  
7,b7 taxpay] outrea* & educational      
activities relat+ to eligibility &      
availability ( income supports available
 ?r\gh ! ,int]nal ,rev5ue ,code ( #aihf1
 includ+ ! e>n$ income tax cr$it1 &     
7,c7 specific outrea* & focus on "o or m
 und]s]v$ populations4  7#c7 ,am\nts    
tak5 into acc\nt ,9 det]m9+ mat*+ grants

 "u ?is section1 ! ,secret>y %all only  
take into acc\nt am\nts provid$ by !    
qualifi$ return prep>ation program =    
exp5ses describ$ 9 subsection 7b74  7d7 
,accuracy reviews  7#a7 ,9 g5]al ,!     
,secret>y %all e/abli% proc$ures =1 &   
%all conduct1 p]iodic site visits (     
qualifi$ return prep>ation programs     
op]at+ "u a grant "u ?is section--  7,a7
 to ensure su* programs are c>ry+ out ! 
purposes ( ?is section1 &  7,b7 to      
det]m9e ! return prep>ation accuracy    
rate ( ! program4  7#b7 ,additional     
requirem5ts = grant recipi5ts n meet+   
m9imum /&>ds ,9 ! case ( any qualifi$   
return prep>ation program :i*-- 7,a7 is 
aw>d$ a grant "u ?is section1 &  7,b7 is
 subsequ5tly det]m9$-- 7i7 to h a less  
?an #ij p]c5t av]age accuracy rate =    
prep>ation ( tax returns1 or  7ii7 n to 
be o!rwise c>ry+ out ! purposes ( ?is   
section1  su* program %all n be eligible
 = any additional grants "u ?is section 
unless su* program provides suffici5t   
docum5tation ( corrective measures      

e/abli%$ to address any su* defici5cies 
det]m9$4  7e7 ,def9itions ,= purposes ( 
?is section--  7#a7 ,qualifi$ return    
prep>ation program ,! t]m qualifi$      
return prep>ation program means any     
program-- 7,a7 :i* provides assi/ance to
 individuals1 n less ?an #ij p]c5t ( :om
 are l[-income taxpay]s1 9 prep>+ & fil+
 ,f$]al income tax returns1  7,b7 :i* is
 adm9i/]$ by a qualifi$ entity1  7,c7 9 
:i* all volunte]s :o assi/ 9 !          
prep>ation ( ,f$]al income tax returns  
meet ! tra9+ requirem5ts prescrib$ by ! 
,secret>y1 &  7,d7 :i* uses a quality   
review process :i* reviews #ajj p]c5t ( 
all returns4  7#b7 ,qualifi$ entity     
7,a7 ,9 g5]al ,! t]m qualifi$ entity    
means any entity :i*--  7i7 is an       
eligible organization1  7ii7 is 9       
compliance ) ,f$]al tax fil+ & paym5t   
requirem5ts1  7iii7 is n deb>r$ or      
susp5d$ f ,f$]al contracts1 grants1 or  
coop]ative agreem5ts1 &  7iv7 agrees to 
provide docum5tation to sub/antiate any 
mat*+ funds provid$ pursuant to ! grant 

program "u ?is section4  7,b7 ,eligible 
organization ,! t]m eligible            
organization means-- 7i7 an in/itution (
 high] education :i* is describ$ 9      
section #ajb 7o!r ?an subsection        
7a77#a77;,c7 !re(7 ( ! ,high] ,education
 ,act ( #aife 7#bj ,u4,s4,c4 #ajjb71 z 9
 effect on ! date ( ! enactm5t ( ?is    
section1 & :i* has n be5 disqualifi$ f  
p>ticipat+ 9 a program "u title ,,iv (  
su* ,act1  7ii7 an organization describ$
 9 section #eja7;c7 & exempt f tax "u   
section #eja7;a71  7iii7 a local        
gov]nm5t ag5cy1 includ+--  7,i7 a c\nty 
or municipal gov]nm5t ag5cy1 &  7,,ii7  
an ,indian tribe1 z def9$ 9 section     
#d7ac7 ( ! ,native ,am]ican ,h\s+       
,assi/ance & ,self-,det]m9ation ,act (  
#aiif 7#be ,u4,s4,c4 #dajc7ac771 includ+
 any tribally designat$ h\s+ entity 7z  
def9$ 9 section #d7bb7 ( su* ,act 7#be  
,u4,s4,c4 #dajc7bb7771 tribal subsidi>y1
 subdivision1 or o!r :olly own$ tribal  
entity1  7iv7 a local1 ,/ate1 regional1 
or national coalition 7) "o lead        

organization :i* meets ! eligibility    
requirem5ts ( clause 7i71 7ii71 or 7iii7
 act+ z ! applicant organization71 or   
7v7 9 ! case ( a t>get$ population or   
community ) respect to :i* no           
organizations describ$ 9 ! prec$+       
clauses are available--  7,i7 a ,/ate   
gov]nm5t ag5cy1 or  7,,ii7 an (fice     
provid+ ,coop]ative ,ext5sion s]vices 7z
 e/abli%$ at ! l&-grant colleges &      
univ]sities "u ! ,smi?-,lev] ,act ( ,may
 #h1 #aiad74  7#c7 ,l[-income taxpay]s  
,! t]m l[-income taxpay] means a taxpay]
 ^: income = ! taxable ye> does n exce$ 
an am\nt equal to ! complet$ phase\t    
am\nt "u section #cb7;b7 = a m>ri$ c\ple
 fil+ a jo9t return ) #c or m qualify+  
*ildr51 z det]m9$ 9 a rev5ue proc$ure or
 o!r publi%$ guidance4  7#d7 ,und]s]v$  
population ,! t]m und]s]v$ population   
includes populations ( p]sons )         
disabilities1 p]sons ) limit$ ,engli%   
pr(ici5cy1 ,native ,am]icans1           
individuals liv+ 9 rural areas1 memb]s (
 ! ,arm$ ,=ces & _! sp\ses1 & ! eld]ly4 

7f7 ,special rules & limitations  7#a7  
,duration ( grants ,^u application ( a  
qualifi$ return prep>ation program1 !   
,secret>y is au?oriz$ to aw>d a         
multi-ye> grant n to exce$ #c ye>s4     
7#b7 ,aggregate limitation ,unless      
o!rwise provid$ by specific             
appropriation1 ! ,secret>y %all n       
allocate m ?an #cj1jjj1jjj p] fiscal ye>
 7exclusive ( co/s ( adm9i/]+ ! program7
 to grants "u ?is section4  7g7         
,promotion & ref]ral  7#a7 ,promotion ,!
 ,secret>y %all promote tax prep>ation  
?r\gh qualifi$ return prep>ation        
programs ?r\gh ! use ( mass             
communications1 ref]rals1 & o!r means4  
7#b7 ,int]nal rev5ue s]vice ref]rals ,! 
,secret>y may ref] taxpay]s to qualifi$ 
return prep>ation programs receiv+      
grants "u ?is section4  7#c7 ,vita      
grantee ref]ral ,qualifi$ return        
prep>ation programs receiv+ a grant "u  
?is section are enc\rag$ to ref]1 z     
appropriate1 to local or regional       
,l[-,income ,taxpay] ,cl9ics individuals

 :o are eligible = su* cl9ics4  4  7#b7 
,cl]ical am5dm5t ,! table ( sections =  
*apt] #gg is am5d$ by ins]t+ aft] ! item
 relat+ to section #gebf ! foll[+ new   
item3  #gebf;,a4 ,return prep>ation     
programs = l[-income taxpay]s4  4  7h7  
,effective date ,! am5dm5ts made by ?is 
section %all apply ) respect to taxable 
ye>s beg9n+ aft] ,decemb] #ca1 #bjah4