,,ii  #aae? ,,congress  #a/ ,session    
,s4 #ahdi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #ai1         
#bjag,mr4 ,br[n introduc$ ! foll[+ bill2
 :i* 0 read twice & ref]r$ to !         
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 modify ! e>n$ income tax cr$it to      
acc\nt = ! am\nt by :i* economic gr[?   
has outpac$ income gr[?1 & = o!r        
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,gr[ ,am]ican ,incomes ,n[ 
,act ( #bjag or ! ,,ga9 ,act ( #bjag4   
#b4 ,modification ( e>n$ income tax     
cr$it  7a7 ,9 g5]al  7#a7 ,increase 9   
cr$it p]c5tage ,! table 9 section       
#cb7;b77#a7 ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$--  7,a7 by /rik+ #g4fe 9
 ! second column 7relat+ to cr$it       
p]c5tage7 & ins]t+ #cj2  7,b7 by /rik+  
#g4fe 9 ! ?ird column 7relat+ to phase\t
 p]c5tage7 & ins]t+ #ae4ih2  7,c7 by    
/rik+ #cd & ins]t+ #fe4bh2  7,d7 by     
/rik+ #dj & ins]t+ #gf4hj2 &  7,e7 by   
/rik+ #de & ins]t+ #hf4dj4  7#b7 ,e>n$  

income am\nt & phase\t am\nt  7,a7 ,9   
g5]al ,subp>agraph 7,a7 ( section       
#cb7;b77#b7 ( su* ,code is am5d$ by     
/rik+ ,subject to subp>agraph 7,b71 !   
e>n$ income am\nt & ! phase\t am\nt &   
ins]t+ 8,subject to subp>agraph 7,b7--  
7i7 ,phase\t am\nt ,! phase\t am\nt is  
#ah1cdj4  7ii7 ,e>n$ income am\nt ,!    
e>n$ income am\nt  4  7,b7 ,cr$it       
phase-9 ends ,section                   
#cb7;b77#b77;,a77ii7 ( su* ,code1 z     
am5d$ by subp>agraph 7,a71 is fur!r     
am5d$ by /rik+ ! table & ins]t+ !       
foll[+3  ,9 ! case ( an,the e>n$ income 
eligible individual )3am\nt is3#a       
qualify+ *ild#aj1jjjb or m qualify+     
*ildr5#ad1jdj,no qualify+ *ildr5#aj1jjj4
 4  7b7 ,eligibility age ,subclause     
7,,ii7 ( section #cb7;c77#a77;,a77ii7 ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by /rik+ #be & ins]t+ #ba4  7c7   
,con=m+ & te*nical am5dm5t ,p>agraph    
7#a7 ( section #cb7;j7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  7#a7 ,9 g5]al ,9 ! case ( any 

taxable ye> beg9n+ aft] #bjaf1 ea* ( !  
doll> am\nts 9 subsections 7b77#b7 &    
7i77#a7 %all be increas$ by an am\nt    
equal to--  7,a7 su* doll> am\nt1       
multipli$ by  7,b7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 = !      
cal5d> ye> 9 :i* ! taxable ye> beg9s1   
det]m9$--  7i7 9 ! case ( am\nts 9      
subsection 7b77#b77;,a71 by sub/itut+   
cal5d> ye> #bjaf = cal5d> ye> #aiib 9   
subp>agraph 7,b7 !re(1 &  7ii7 9 ! case 
( am\nts 9 subsection 7i77#a71 by       
sub/itut+ cal5d> ye> #aiie = cal5d> ye> 
#aiib 9 subp>agraph 7,b7 !re(4  4  7d7  
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjaf4  #c4   
,advance paym5t ( e>n$ income cr$it  7a7
 ,9 g5]al ,*apt] #be ( subtitle ,c ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #cejf ! foll[+   
new section3  #cejg4 ,advance paym5t (  
e>n$ income cr$it  7a7 ,advance paym5t  
7#a7 ,9 g5]al ,an employ] mak+ paym5t ( 
wages to an employee ) respect to :om an

 eligibility c]tificate is 9 effect     
%all1 at ! "t ( pay+ su* wages = !      
payroll p]iod elect$ by ! employee "u   
p>agraph 7#b71 make an additional lump  
sum paym5t to su* employee equal to !   
e>n$ income advance am\nt 7except z     
provid$ 9 subsection 7b77#a77;,c77ii77 (
 su* employee4  7#b7 ,paym5ts available 
aft] #f mon?s ( employm5t dur+ cal5d>   
ye> ,= purposes ( p>agraph 7#a71 an     
employee ) respect to :om an eligibility
 c]tificate is 9 effect = ! cal5d> ye>  
may elect to receive ! e>n$ income      
advance am\nt at ! same "t z wages = any
 payroll p]iod :i* beg9s aft] ! employee
 has be5 paid wages by ! employ] = a    
p]iod ( n less ?an #f mon?s dur+ su*    
cal5d> ye>4  7b7 ,eligibility c]tificate
  7#a7 ,9 g5]al ,= purposes ( ?is       
section1 an eligibility c]tificate is a 
/atem5t submitt$ by an employee to !    
employ] :i*--  7,a7 c]tifies t !        
employee is eligible to receive ! cr$it 
provid$ by section #cb = ! taxable ye>1 
7,b7 c]tifies t ! employee does n h an  

eligibility c]tificate 9 effect = !     
cal5d> ye> ) respect to ! paym5t ( wages
 by ano!r employ]1 &  7,c7 c]tifies t-- 
7i7 an eligibility c]tificate has n be5 
9 effect = ! sp\se ( ! employee on any  
date dur+ ! cal5d> ye>1 or  7ii7 su* a  
c]tificate is 9 effect = ! sp\se ( !    
employee1 & ! employee is eligible to   
receive only #a_/b ! e>n$ income advance
 am\nt o!rwise det]m9$ ) respect to !   
employee4  7#b7 ,employ] n responsible =
 v]ification ,= purposes ( ?is section1 
an employ] %all n-- 7,a7 be requir$ to  
v]ify any c]tification made by an       
employee 9 ! /atem5t describ$ 9 p>agraph
 7#a71 or  7,b7 be held liable = any    
false claims or /atem5ts made by an     
employee 9 reg>ds to su* /atem5t4  7c7  
,e>n$ income advance am\nt  7#a7        
,det]m9ation ( am\nt  7,a7 ,9 g5]al     
,subject to subp>agraph 7,b71 ! t]m e>n$
 income advance am\nt means1 ) respect  
to any payroll p]iod1 ! am\nt det]m9$-- 
7i7 on ! basis ( ! wages ( ! employee f 
! employ] dur+ su* cal5d> ye> ?r\gh su* 

payroll p]iod1 &  7ii7 9 accordance )   
tables issu$ by ! ,secret>y4  7,b7      
,limitation ,= ea* cal5d> ye>1 except z 
provid$ 9 subp>agraph 7,c71 ! e>n$      
income advance am\nt %all n exce$ #ejj4 
7,c7 ,adju/m5t = inflation  7i7 ,9 g5]al
 ,9 ! case ( any taxable ye> beg9n+ aft]
 #bjai1 ! #ejj am\nt 9 subp>agraph 7,b7 
%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> #bjah = cal5d> ye> #aiib 9  
subp>agraph 7,b7 !re(4  7ii7 ,r\nd+ ,if 
any increase det]m9$ "u p>agraph 7#a7 is
 n a multiple ( #aj1 su* increase %all  
be r\nd$ to ! ne>e/ multiple ( #aj4     
7#b7 ,arm$ ,=ces ,9 ! case ( an employee
 :o is a memb] ( ! ,arm$ ,=ces ( !      
,unit$ ,/ates1 ! e>n$ income advance    
am\nt %all be det]m9$ by tak+ into      
acc\nt ! total wages ( su* employee1 z  
det]m9$ = purposes ( section #cb4  7#c7 
,advance am\nt tables ,= purposes (     

p>agraph 7#a77;,a77ii71 ! tables issu$  
by ! ,secret>y %all be simil> 9 =m to ! 
tables issu$ "u section #cdjb &1 to !   
ext5t feasible1 coord9at$ ) su* tables4 
7d7 ,paym5ts ,to be treat$ z paym5ts (  
)hold+ & ,,fica taxes  7#a7 ,9 g5]al    
,paym5ts made by an employ] "u          
subsection 7a7 to an employee-- 7,a7    
%all n be treat$ z paym5t ( comp5sation1
 &  7,b7 %all be treat$ z made out (--  
7i7 am\nts requir$ to be d$uct$ & )held 
= ! payroll p]iod "u section #cdja1     
7ii7 am\nts requir$ to be d$uct$ = !    
payroll p]iod "u section #cajb1 &  7iii7
 am\nts ( ! taxes impos$ = ! payroll    
p]iod "u section #caaa1  z if ! employ] 
_h paid to ! ,secret>y1 on ! day on :i* 
! wages are paid to ! employee1 an am\nt
 equal to su* paym5ts4  7#b7 ,advance   
paym5ts exce$ taxes due ,9 ! case ( any 
employ]1 if = any payroll p]iod !       
aggregate am\nt ( e>n$ income advance   
paym5ts exce$s ! sum ( ! am\nts ref]r$  
to 9 p>agraph 7#a77;,b71 ! employ] %all 
pay only s mu* ( su* e>n$ income advance

 paym5t z does n exce$ su* sum1 & %all n
 make any fur!r advance paym5ts to !    
employee = ! cal5d> ye>4  7#c7 ,failure 
to make advance paym5ts ,failure to make
 any paym5t ( an e>n$ income advance    
am\nt z requir$ "u ?is section %all be  
treat$ z ! failure at su* "t to d$uct & 
)hold "u *apt] #bd an am\nt equal to !  
e>n$ income advance am\nt4  7e7         
,submission ( c]tificate  7#a7          
,effective p]iod ,an eligibility        
c]tificate submitt$ to an employ] at any
 "t dur+ ! cal5d> ye> %all cont9ue 9    
effect ) respect to ! employee dur+ su* 
cal5d> ye> until revok$ by ! employee or
 until ano!r su* c]tificate takes effect
 "u ?is section4  7#b7 ,requirem5t to   
revoke c]tificate ,9 ! case ( an        
employee :o has submitt$ an eligibility 
c]tificate "u ?is section & subsequ5tly 
becomes ineligible = ! cr$it provid$ "u 
section #cb = ! taxable ye>1 ! employee 
%all1 n lat] ?an #aj days aft] becom+   
ineligible = su* cr$it1 submit to !     
employ] a revocation ( su* c]tificate4  

7#c7 ,=m & cont5ts ( c]tificate         
,eligibility c]tificates %all be 9 su*  
=m & conta9 su* o!r in=mation z !       
,secret>y may by regulations prescribe4 
7f7 ,taxpay]s mak+ prior fraudul5t or   
reckless claims  7#a7 ,9 g5]al ,no e>n$ 
income advance am\nt %all be paid "u ?is
 section = any taxable ye> 9 !          
disall[ance p]iod4  7#b7 ,disall[ance   
p]iod ,= purposes ( p>agraph 7#a71 !    
disall[ance p]iod is-- 7,a7 ! p]iod (   
#aj taxable ye>s aft] ! mo/ rec5t       
taxable ye> = :i* !re 0 a f9al          
det]m9ation t ! taxpay]'s claim ( an    
e>n$ income advance am\nt "u ?is section
 0 due to fraud1 &  7,b7 ! p]iod ( #b   
taxable ye>s aft] ! mo/ rec5t taxable   
ye> = :i* !re 0 a f9al det]m9ation t !  
taxpay]'s claim ( an e>n$ income advance
 am\nt "u ?is section 0 due to reckless 
or int5tional disreg>d ( rules &        
regulations 7b n due to fraud74  7g7    
,taxable ye> ,! t]m taxable ye> means ! 
la/ taxable ye> ( ! employee "u subtitle
 ,a beg9n+ 9 ! cal5d> ye> 9 :i* ! wages 

are paid4  7h7 ,,irs ,notification ,!   
,int]nal ,rev5ue ,s]vice %all take su*  
/eps z may be appropriate to ensure t   
taxpay]s :o receive a refund ( ! cr$it  
"u section #cb are aw>e ( ! availability
 ( e>n$ income advance am\nts "u ?is    
section4  4  7b7 ,coord9ation ) advance 
paym5ts ,section #cb ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] subsection 7f7 ! foll[+ new       
subsection3  7g7 ,coord9ation ) advance 
paym5ts ( e>n$ income cr$it  7#a7       
,recapture ( advance paym5ts ,if any    
paym5t is made to ! individual by an    
employ] "u section #cejg dur+ any cal5d>
 ye>1 !n ! tax impos$ by ?is *apt] = !  
individual's la/ taxable ye> beg9n+ 9   
su* cal5d> ye> %all be increas$ by !    
aggregate am\nt ( su* paym5ts4  7#b7    
,reconciliation ( paym5ts advanc$ &     
cr$it all[$ ,any increase 9 tax "u      
p>agraph 7#a7 %all n be treat$ z tax    
impos$ by ?is *apt] = purposes ( det]m9+
 ! am\nt ( any cr$it 7o!r ?an ! cr$it   
all[$ by subsection 7a77 all[able "u ?is

 "p4  4  7c7 ,fil+ requirem5t ,section  
#fjab7;a7 ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by ins]t+ aft] p>agraph  
7#h7 ! foll[+ new p>agraph3  7#i7 ,e    
individual :o receives paym5ts dur+ !   
cal5d> ye> 9 :i* ! taxable ye> beg9s "u 
section #cejg4  4  7d7 ,receipts =      
employees ,section #fjea7;a7 ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] p>agraph 7#f7 ! foll[+   
new p>agraph3  7#g7 ! total am\nt paid  
to ! employee "u section #cejg 7relat+  
to advance paym5t ( e>n$ income cr$it71 
4  7e7 ,cl]ical am5dm5t ,! table (      
sections = *apt] #be ( subtitle ,c ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#cejf ! foll[+ new item3  ,sec4 #cejg4  
,advance paym5t ( e>n$ income cr$it4  4 
7f7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ! date :i* is #a ye> aft] ! 
date ( ! enactm5t ( ?is ,act4