,,ii  #aaeth ,,congress  #ast ,session  
,s4 #bjah  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,october #bf1  
#bjag,mr4 ,bennet 7for himself and ,mr4 
,brown7 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 make the child tax credit fully
 refundable1 establish an increased     
child tax credit for young children1 and
 for other purposes4  #a4 ,short title  
,this ,act may be cited as the ,american
 ,family ,act of #bjag4  #b4            
,establishment of fully refundable child
 tax credit  7a7 ,elimination of        
existing child tax credit ,subpart ,a of
 part ,,iv of subchapter ,a of chapter  
#a of subtitle ,a of the ,internal      
,revenue ,code of #aihf is amended by   
striking section #bd4  7b7              
,establishment of fully refundable child
 tax credit ,subpart ,c of part ,,iv of 
subchapter ,a of chapter #a of subtitle 
,a of such ,code is amended by inserting

 after section #cf;,b the following new 
section3  #cf;,c4 ,child tax credit  7a7
 ,allowance of credit ,there shall be   
allowed as a credit against the tax     
imposed by this chapter for the taxable 
year an amount equal to the sum of--    
7#a7 with respect to each qualifying    
child of the taxpayer who has attained  
#f years of age before the close of such
 taxable year and for which the taxpayer
 is allowed a deduction under section   
#aea1 an amount equal to #c1jjj1 and    
7#b7 with respect to each qualifying    
child of the taxpayer who has not       
attained #f years of age before the     
close of such taxable year and for which
 the taxpayer is allowed a deduction    
under section #aea1 an amount equal to  
#abj percent of the dollar amount in    
paragraph 7#a74  7b7 ,limitation  7#a7  
,in general ,the amount of the credit   
allowable under subsection 7a7 shall be 
reduced 7but not below zero7 by the     
applicable amount for each #a1jjj 7or   
fraction thereof7 by which the          

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  7,a7 ,in general
 ,for purposes of paragraph 7#a71 the   
term threshold amount means-- 7i7       
#aaj1jjj in the case of a joint return1 
7ii7 #ge1jjj in the case of an          
individual who is not married1 and      
7iii7 #ee1jjj in the case of a married  
individual filing a separate return4    
7,b7 ,marital status ,for purposes of   
this paragraph1 marital status shall be 
determined under section #ggjc4  7#c7   
,applicable amount ,for purposes of     
paragraph 7#a71 the term applicable     
amount means an amount equal to the     
quotient of--  7,a7 the amount of the   
credit allowable under subsection 7a71  
as determined without regard to this    
subsection1 divided by  7,b7 an amount  

equal to the product of-- 7i7 #bj1      
multiplied by  7ii7 the total number of 
qualifying children of the taxpayer4    
7c7 ,qualifying child  7#a7 ,in general 
,in this section1 the term qualifying   
child means a qualifying child of the   
taxpayer 7as defined in section         
#aeb7;c77 who has not attained #ai years
 of age4  7#b7 ,exception for certain   
non-citizens ,the term qualifying child 
shall not include any individual who    
would not be a dependent if subparagraph
 7,a7 of section #aeb7;b77#c7 were      
applied without regard to all that      
follows resident of the ,united ,states4
  7d7 ,inflation adjustment  7#a7 ,in   
general ,in the case of any taxable year
 beginning after #bjag1 the #c1jjj      
amount in subsection 7a77#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 
begins determined by substituting       

calendar year #bjaf for calendar year   
#aiib in subparagraph 7,b7 thereof4     
7#b7 ,rounding ,if any increase         
determined under paragraph 7#a7 is not a
 multiple of #ej1 such increase shall be
 rounded to the nearest multiple of #ej4
  7e7 ,identification requirements  7#a7
 ,qualifying child identification       
requirement ,no credit shall be allowed 
under this section to a taxpayer with   
respect to any qualifying child unless  
the taxpayer includes the name and      
taxpayer identification number of such  
qualifying child on the return of tax   
for the taxable year and such taxpayer  
identification number was issued on or  
before the due date for filing such     
return4  7#b7 ,taxpayer identification  
requirement ,no credit shall be allowed 
under this section if the identifying   
number of the taxpayer was issued after 
the due date for filing the return for  
the taxable year4  7f7 ,taxable year    
must be full taxable year ,except in the
 case of a taxable year closed by reason

 of the death of the taxpayer1 no credit
 shall be allowable under this section  
in the case of a taxable year covering a
 period of less than #ab months4  7g7   
,restrictions on taxpayers who          
improperly claimed credit in prior year 
7#a7 ,taxpayers making prior fraudulent 
or reckless claims  7,a7 ,in general ,no
 credit shall be allowed under this     
section for any taxable year in the     
disallowance period4  7,b7 ,disallowance
 period ,for purposes of subparagraph   
7,a71 the disallowance period is--  7i7 
the period of #aj taxable years after   
the most recent taxable year for which  
there was a final determination that the
 taxpayer's claim of credit under this  
section was due to fraud1 and  7ii7 the 
period of #b taxable years after the    
most recent taxable year for which there
 was a final determination that the     
taxpayer's claim of credit under this   
section was due to reckless or          
intentional disregard of rules and      
regulations 7but not due to fraud74     

7#b7 ,taxpayers making improper prior   
claims ,in the case of a taxpayer who is
 denied credit under this section for   
any taxable year as a result of the     
deficiency procedures under subchapter  
,b of chapter #fc1 no credit shall be   
allowed under this section for any      
subsequent taxable year unless the      
taxpayer provides such information as   
the ,secretary may require to           
demonstrate eligibility for such credit4
  7h7 ,reconciliation of credit and     
advance credit  7#a7 ,in general ,the   
amount of the credit allowed under this 
section 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 exceed   
the amount of the credit allowed under  
this section for such taxable year      
7determined without regard to paragraph 

7#a771 the tax imposed by this chapter  
for such taxable year shall be increased
 by the amount of such excess  4  7c7   
,advance payment of credit ,chapter #gg 
of the ,internal ,revenue ,code of #aihf
 is amended by inserting after section  
#gebg the following new section3        
#gebg;,a4 ,advance payment of 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 #cf;,c
 on a monthly basis 7determined without 
regard to subsection 7h77#a7 of such    
section71 or as frequently as the       
,secretary determines to be             
administratively feasible1 to taxpayers 
allowed such credit4  7b7 ,limitation   
7#a7 ,in general ,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 

an amount equal to the excess1 if any1  
of--  7,a7 subject to paragraph 7#b71   
the amount determined under subsection  
7a7 of section #cf;,c with respect to   
such taxpayer 7determined without regard
 to subsection 7h7 of such section7 for 
such taxable year1 over  7,b7 the       
estimated tax imposed by subtitle ,a1 as
 reduced by the credits allowable under 
subparts ,a and ,c 7with the exception  
of section #cf;,c7 of such part ,,iv1   
with respect to such taxpayer for such  
taxable year1 as determined in such     
manner as the ,secretary deems          
appropriate4  7#b7 ,application of      
threshold amount limitation ,the program
 described in subsection 7a7 shall make 
reasonable efforts to apply the         
limitation of section #cf;,c7b7 with    
respect to payments made under such     
program4  4  7d7 ,conforming amendments 
7#a7 ,the table of sections for subpart 
,a of part ,,iv of subchapter ,a of     
chapter #a of subtitle ,a of the        
,internal ,revenue ,code of #aihf is    

amended by striking the item relating to
 section #bd4  7#b7 ,the table of       
sections for subpart ,c of part ,,iv of 
subchapter ,a of chapter #a of subtitle 
,a of such ,code is amended by inserting
 after the item relating to section     
#cf;,b the following3 ,sec4 #cf;,c4     
,child tax credit44  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 child tax credit4  4  7#d7   
,subparagraph 7,b7 of section           
#de,r7f77#c7 of such ,code is amended to
 read as follows3  7,b7 ,special rule   
,any amounts paid pursuant to an        
agreement under section #caba7l7        
7relating to agreements entered into by 
,american employers with respect to     
foreign affiliates7 which are equivalent
 to the taxes referred to in            
subparagraph 7,a7 shall be treated as   
taxes referred to in such subparagraph4 
4  7#e7 ,section #aeb7;f77#f77;,b77ii7  

of such ,code is amended by striking    
section #bd and inserting section       
#cf;,c4  7#f7 ,paragraph 7#bf7 of       
section #eja7;c7 of such ,code is       
amended in the flush matter at the end  
by striking section #bd7;c77 and        
inserting section #cf;,c7c77 who has not
 attained #ag years of age4  7#g7       
,section #fbaa7;b77#d77;,a7 of such     
,code is amended-- 7,a7 by striking     
#bd7;d711 and  7,b7 by inserting #cf;,c1
 after #cf;,b14  7#h7 ,section          
#fbac7;g77#b7 of such ,code is amended--
  7,a7 in subparagraph 7,i71 by striking
 section #bd7;e7 and inserting section  
#cf;,c7e71 and  7,b7 in subparagraph    
7,l71 by striking #bd1 or #cb and       
inserting #cb1 or #cf;,c4  7#i7         
,paragraph 7#b7 of section #acbd7;b7 of 
title #ca1 ,united ,states ,code1 is    
amended by inserting #cf;,c1 after      
#cf;,b14  7e7 ,effective date ,the      
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjaf4