,i #aaeth ,,congress #ast ,session ,h4 ,r4 #hba ,,in ,,the ,,house ,,of ,,representatives ,february #b1 #bjag,ms4 ,de,lauro 7for herself1 ,ms4 ,pelosi1 ,mr4 ,neal1 ,mr4 ,doggett1 ,mr4 ,levin1 ,mr4 ,crowley1 ,mr4 ,lewis of ,georgia1 ,mr4 ,mc,govern1 ,mr4 ,ben ,ray ,lujn of ,new ,mexico1 ,mr4 ,larson of ,connecticut1 ,ms4 ,snchez1 ,mr4 ,gutirrez1 ,mr4 ,pascrell1 ,mrs4 ,dingell1 ,mr4 ,meeks1 ,ms4 ,norton1 ,mr4 ,soto1 ,mr4 ,danny ,k4 ,davis of ,illinois1 ,mr4 ,khanna1 ,ms4 ,esty1 ,mr4 ,butterfield1 ,ms4 ,schakowsky1 ,mrs4 ,lawrence1 ,mr4 ,kennedy1 ,ms4 ,slaughter1 ,ms4 ,shea-,porter1 ,mr4 ,brendan ,f4 ,boyle of ,pennsylvania1 ,mr4 ,hoyer1 ,ms4 ,eshoo1 and ,ms4 ,wasserman ,schultz7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to increase the child credit for children under the age of #f1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,child ,tax ,credit ,improvement ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,according to the ,supplemental ,poverty ,measure of the ,bureau of the ,census1 the ,child tax credit and earned income tax credit lift more children out of poverty than any other ,federal policy4 ,according to research published by the ,century ,foundation1 the child tax credit alone now lifts nearly #a in #h children who would otherwise be poor out of poverty4 7#b7 ,despite the success of the child tax credit1 economists have found that families with young children often receive the smallest child tax credits because they do not yet have enough income to receive the full benefit of the credit4 7#c7 ,pediatricians and other child development experts have long talked about the critical importance of the earliest years of life4 7#d7 ,economists have found similar effects of the importance of income in the earliest years with returns to school achievement4 7#e7 ,young children1 including babies and toddlers1 are among the poorest people in the country by age4 7#f7 ,economists have found that large fluctuations in a family's income can be detrimental to the development of young children4 ,research on scarcity has found it is hard for parents to focus on children if they are worrying about having sufficient income to meet their family's needs4 7#g7 ,indexing the value of the child tax credit would end the slow erosion of the child tax credit due to inflation4 #c4 ,young child tax credit 7a7 ,special rule for young children ,section #bd of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7h7 ,young child tax credit 7#a7 ,in general ,in the case of a young qualifying child1 subsection 7a7 shall be applied for the taxable year 7after the application of subsection 7i77 by substituting #c1fjj for #a1jjj4 7#b7 ,young qualifying child ,for purposes of paragraph 7#a71 the term young qualifying child means a qualifying child who has not attained age #f as of the close of such taxable year4 7#c7 ,limitation based on adjusted gross income ,for purposes of applying subsection 7b7 with respect to a young qualifying child1 paragraph 7#a7 of subsection 7b7 shall be applied by substituting #ahj for #ej4 7#d7 ,credit refundable ,the aggregate credits allowed to a taxpayer under subpart ,c shall be increased by the credit which would be allowed under this section without regard to this subsection1 subsection 7d71 and the limitation under section #bf7;a74 ,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 7#e7 ,reconciliation of credit and advance credit 7,a7 ,in general ,the amount of the credit allowed under subsection 7a7 by reason of paragraph 7#a7 for any taxable year shall be reduced 7but not below zero7 by the aggregate amount of any advance payments of such credit under section #gebg;,a for such taxable year4 7,b7 ,excess advance payments ,if the aggregate amount of advance payments under section #gebg;,a for the taxable year exceeds the amount of the credit allowed under subsection 7a7 by reason of paragraph 7#a7 for such taxable year 7determined without regard to subparagraph 7,a771 the tax imposed by this chapter for such taxable year shall be increased by the amount of such excess4 4 7b7 ,advance payment of credit ,chapter #gg of such ,code is amended by inserting after section #gebg the following new section3 #gebg;,a4 ,advance payment of young child tax credit 7a7 ,in general ,as soon as practicable and not later than #a year after the date of the enactment of this section1 the ,secretary shall establish a program for making advance payments of the credit allowed under section #bd by reason of subsection 7h7 thereof on a monthly basis1 or as frequently as the ,secretary determines to be administratively feasible1 to taxpayers allowed such credit 7determined without regard to section #bd7;h77#e77;,a774 7b7 ,limitation ,the ,secretary may make payments under subsection 7a7 only to the extent that the total amount of such payments made to any taxpayer during the taxable year does not exceed the amount determined under section #bd7;h7 with respect to such taxpayer 7determined without regard to subsections 7b7 and 7f7 of such section74 ,such program shall make reasonable efforts to apply the limitation of section #bd7;b7 with respect to payments made under such program4 4 7c7 ,conforming amendments 7#a7 ,section #fbaa7;b77#d77;,a7 of such ,code is amended by inserting #bd7;h71 after #bd7;d714 7#b7 ,section #fdjb7m7 of such ,code is amended by inserting or 7h7 after subsection 7d74 7#c7 ,the table of sections for chapter #gg of such ,code is amended by inserting after the item relating to section #gebg the following new item3 ,sec4 #gebg;,a4 ,advance payment of young child tax credit4 4 7#d7 ,section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 is amended by inserting #bd7;h71 before #be;,a14 7d7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 7#b7 ,advance payment program ,the ,secretary of the ,treasury1 or his designee1 shall establish the program described in section #gebg;,a of the ,internal ,revenue ,code of #aihf 7as added by this section7 not later than such date4 #d4 ,modifications of the child tax credit 7a7 ,refundable portion ,clause 7i7 of section #bd7;d77#a77;,b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7i7 #de percent of the taxpayer's earned income 7within the meaning of section #cb7 which is taken into account in computing taxable income for the taxable year1 or 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply to taxable years beginning after ,december #ca1 #bjaf4 #e4 ,adjustments for inflation 7a7 ,in general ,section #bd of the ,internal ,revenue ,code of #aihf1 as amended by sections #c and #d1 is amended by adding at the end the following new subsection3 7i7 ,inflation adjustments 7#a7 ,credit amount generally ,in the case of any taxable year beginning in a calendar year after #bjaf1 the #a1jjj amount contained in subsection 7a7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjaj for calendar year #aiib in subparagraph 7,b7 thereof4 7#b7 ,young child credit amount ,in the case of any taxable year beginning in a calendar year after #bjag1 the #c1fjj amount contained in subsection 7h77#a7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjaf for calendar year #aiib in subparagraph 7,b7 thereof4 7#c7 ,rounding ,any increase determined under paragraph 7#a7 or 7#b7 shall be rounded to the nearest multiple of #ej4 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply to taxable years beginning after ,december #ca1 #bjaf4