,i #aafth ,,congress #ast ,session ,h4 ,r4 #ccjj ,,in ,,the ,,house ,,of ,,representatives ,june #ah1 #bjai,mr4 ,neal 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 provide tax relief for workers and families1 and for other purposes4 #a4 ,short title2 etc 7a7 ,short title ,this ,act may be cited as the ,economic ,mobility ,act of #bjai4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 etc4 ,title ,i--,earned ,income ,tax ,credit ,sec4 #aja4 ,strengthening the earned income tax credit for individuals with no qualifying children4 ,sec4 #ajb4 ,taxpayer eligible for childless earned income credit in case of qualifying children who fail to meet certain identification requirements4 ,sec4 #ajc4 ,credit allowed in case of certain separated spouses4 ,sec4 #ajd4 ,elimination of disqualified investment income test4 ,sec4 #aje4 ,application of earned income tax credit in possessions of the ,united ,states4 ,title ,,ii--,child ,tax ,credit ,sec4 #bja4 ,child tax credit fully refundable for #bjai and #bjbj4 ,sec4 #bjb4 ,payments to possessions4 ,title ,,iii--,dependent ,care ,assistance ,sec4 #cja4 ,refundability and enhancement of child and dependent care tax credit4 ,sec4 #cjb4 ,increase in exclusion for employer-provided dependent care assistance4 ,title ,,iv--,certain ,fringe ,benefit ,expenses ,sec4 #dja4 ,repeal of inclusion of certain fringe benefit expenses in unrelated business taxable income4 7c7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 ,i ,earned ,income ,tax ,credit #aja4 ,strengthening the earned income tax credit for individuals with no qualifying children 7a7 ,special rules for #bjai and #bjbj ,section #cb is amended by adding at the end the following new subsection3 7n7 ,special rules for individuals without qualifying children ,in the case of any taxable year beginning in #bjai or #bjbj-- 7#a7 ,credit allowed for certain individuals over age #ah 7,a7 ,in general ,except in the case of a full-time student 7or1 in the case of a married individual1 except if both the individual and the individual's spouse are full-time students71 subsection 7c77#a77;,a77ii77,,ii7 shall be applied by substituting age #ai for age #be4 7,b7 ,full-time student ,for purposes of this paragraph1 the term full-time student means1 with respect to a taxable year1 an individual who is an eligible student 7as defined in section #be;,a7b77#c77 during at least #e calendar months during the taxable year4 7#b7 ,increase in maximum age for credit ,subsection 7c77#a77;,a77ii77,,ii7 shall be applied by substituting age #ff for age #fe4 7#c7 ,increase in credit and phaseout percentages ,the table contained in subsection 7b77#a7 shall be applied by substituting #ae4c for #g4fe each place it appears therein4 7#d7 ,increase in earned income and phaseout amounts 7,a7 ,in general ,the table contained in subsection 7b77#b77;,a7 shall be applied-- 7i7 by substituting #i1egj for #d1bbj1 and 7ii7 by substituting #aa1caj for #e1bhj4 7,b7 ,coordination with inflation adjustment 7i7 ,in general ,in the case of any taxable year beginning after #bjai1 the #i1egj and #aa1caj amounts in subparagraph 7,a7 shall each be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting #bjah for #bjaf in subparagraph 7,a77ii7 thereof4 7ii7 ,rounding ,if any increase under clause 7i7 is not a multiple of #aj1 such increase shall be rounded to the nearest multiple of #aj4 7iii7 ,coordination with other inflation adjustment ,subsection 7j7 shall not apply to any dollar amount specified in this paragraph4 4 7b7 ,information return matching ,as soon as practicable1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall develop and implement procedures for checking an individual's claim for a credit under section #cb of the ,internal ,revenue ,code of #aihf1 by reason of subsection 7n77#a7 thereof1 against any information return made with respect to such individual under section #fjej,s 7relating to returns relating to higher education tuition and related expenses74 7c7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjah4 #ajb4 ,taxpayer eligible for childless earned income credit in case of qualifying children who fail to meet certain identification requirements 7a7 ,in general ,section #cb7;c77#a7 is amended by striking subparagraph 7,f74 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #ajc4 ,credit allowed in case of certain separated spouses 7a7 ,in general ,section #cb7;d7 is amended-- 7#a7 by striking ,married individuals4--,in the case of and inserting the following3 ,married individuals4-- 7#a7 ,in general ,in the case of 2 and 7#b7 by adding at the end the following new paragraph3 7#b7 ,determination of marital status ,for purposes of this section-- 7,a7 ,in general ,except as provided in subparagraph 7,b71 marital status shall be determined under section #ggjc7;a74 7,b7 ,special rule for separated spouse ,an individual shall not be treated as married if such individual-- 7i7 is married 7as determined under section #ggjc7;a77 and does not file a joint return for the taxable year1 7ii7 lives with a qualifying child of the individual for more than one-half of such taxable year1 and 7iii7 7,i7 during the last #f months of such taxable year1 does not have the same principal place of abode as the individual's spouse1 or 7,,ii7 has a decree1 instrument1 or agreement 7other than a decree of divorce7 described in section #aba7;d77#c77;,c7 with respect to the individual's spouse and is not a member of the same household with the individual's spouse by the end of the taxable year4 4 7b7 ,conforming amendments 7#a7 ,section #cb7;c77#a77;,a7 of such ,code is amended by striking the last sentence4 7#b7 ,section #cb7;c77#a77;,e77ii7 of such ,code is amended by striking 7within the meaning of section #ggjc74 7#c7 ,section #cb7;d77#a7 of such ,code1 as amended by subsection 7a71 is amended by striking 7within the meaning of section #ggjc74 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #ajd4 ,elimination of disqualified investment income test 7a7 ,in general ,section #cb of the ,internal ,revenue ,code of #aihf is amended by striking subsection 7i74 7b7 ,conforming amendments 7#a7 ,section #cb7;j77#a7 of such ,code is amended by striking subsection 7b77#b7 and 7i77#a7 and inserting subsection 7b77#b74 7#b7 ,section #cb7;j77#a77;,b77i7 of such ,code is amended by striking subsections 7b77#b77;,a7 and 7i77#a7 and inserting subsection 7b77#b77;,a74 7#c7 ,section #cb7;j77#b7 of such ,code is amended-- 7,a7 by striking subparagraph 7,b72 and 7,b7 by striking ,rounding4-- and all that follows through ,if any dollar amount and inserting the following3 ,rounding4--,if any dollar amount4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #aje4 ,application of earned income tax credit in possessions of the ,united ,states 7a7 ,in general ,chapter #gg of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #gebi4 ,application of earned income tax credit to possessions of the ,united ,states 7a7 ,puerto ,rico 7#a7 ,in general ,with respect to calendar year #bjbj and each calendar year thereafter1 the ,secretary shall1 except as otherwise provided in this subsection1 make payments to ,puerto ,rico equal to-- 7,a7 the specified matching amount for such calendar year1 plus 7,b7 in the case of calendar years #bjbj through #bjbd1 the lesser of-- 7i7 the expenditures made by ,puerto ,rico during such calendar year for education efforts with respect to individual taxpayers and tax return preparers relating to the earned income tax credit1 or 7ii7 #a1jjj1jjj4 7#b7 ,requirement to reform earned income tax credit ,the ,secretary shall not make any payments under paragraph 7#a7 with respect to any calendar year unless ,puerto ,rico has in effect an earned income tax credit for taxable years beginning in or with such calendar year which 7relative to the earned income tax credit which was in effect for taxable years beginning in or with calendar year #bjai7 increases the percentage of earned income which is allowed as a credit for each group of individuals with respect to which such percentage is separately stated or determined in a manner designed to substantially increase workforce participation4 7#c7 ,specified matching amount ,for purposes of this subsection-- 7,a7 ,in general ,the term specified matching amount means1 with respect to any calendar year1 the lesser of-- 7i7 the excess 7if any7 of-- 7,i7 the cost to ,puerto ,rico of the earned income tax credit for taxable years beginning in or with such calendar year1 over 7,,ii7 the base amount for such calendar year1 or 7ii7 the product of #c1 multiplied by the base amount for such calendar year4 7,b7 ,base amount 7i7 ,base amount for #bjbj ,in the case of calendar year #bjbj1 the term base amount means the greater of-- 7,i7 the cost to ,puerto ,rico of the earned income tax credit for taxable years beginning in or with calendar year #bjai 7rounded to the nearest multiple of #a1jjj1jjj71 or 7,,ii7 #bjj1jjj1jjj4 7ii7 ,inflation adjustment ,in the case of any calendar year after #bjbj1 the term base amount means the dollar amount determined under clause 7i7 increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by-- 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for such calendar year1 determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,any amount determined under this clause shall be rounded to the nearest multiple of #a1jjj1jjj4 7#d7 ,rules related to payments and reports 7,a7 ,timing of payments ,the ,secretary shall make payments under paragraph 7#a7 for any calendar year-- 7i7 after receipt of the report described in subparagraph 7,b7 for such calendar year1 and 7ii7 except as provided in clause 7i71 within a reasonable period of time before the due date for individual income tax returns 7as determined under the laws of ,puerto ,rico7 for taxable years which began on the first day of such calendar year4 7,b7 ,annual reports ,with respect to calendar year #bjbj and each calendar year thereafter1 ,puerto ,rico shall provide to the ,secretary a report which shall include-- 7i7 an estimate of the costs described in paragraphs 7#a77;,b77i7 and 7#c77;,a77i77,i7 with respect to such calendar year1 and 7ii7 a statement of such costs with respect to the preceding calendar year4 7,c7 ,adjustments 7i7 ,in general ,in the event that any estimate of an amount is more or less than the actual amount as later determined and any payment under paragraph 7#a7 was determined on the basis of such estimate1 proper payment shall be made by1 or to1 the ,secretary 7as the case may be7 as soon as practicable after the determination that such estimate was inaccurate4 ,proper adjustment shall be made in the amount of any subsequent payments made under paragraph 7#a7 to the extent that proper payment is not made under the preceding sentence before such subsequent payments4 7ii7 ,additional reports ,the ,secretary may require such additional periodic reports of the information described in subparagraph 7,b7 as the ,secretary determines appropriate to facilitate timely adjustments under clause 7i74 7,d7 ,determination of cost of earned income tax credit ,for purposes of this subsection1 the cost to ,puerto ,rico of the earned income tax credit shall be determined by the ,secretary on the basis of the laws of ,puerto ,rico and shall include reductions in revenues received by ,puerto ,rico by reason of such credit and refunds attributable to such credit1 but shall not include any administrative costs with respect to such credit4 7,e7 ,prevention of manipulation of base amount ,no payments shall be made under paragraph 7#a7 if the earned income tax credit as in effect in ,puerto ,rico for taxable years beginning in or with calendar year #bjai is modified after the date of the enactment of this subsection4 7b7 ,possessions with mirror code tax systems 7#a7 ,in general ,with respect to calendar year #bjbj and each calendar year thereafter1 the ,secretary shall1 except as otherwise provided in this subsection1 make payments to the ,virgin ,islands1 ,guam1 and the ,commonwealth of the ,northern ,mariana ,islands equal to-- 7,a7 #ge percent of the cost to such possession of the earned income tax credit for taxable years beginning in or with such calendar year1 plus 7,b7 in the case of calendar years #bjbj through #bjbd1 the lesser of-- 7i7 the expenditures made by such possession during such calendar year for education efforts with respect to individual taxpayers and tax return preparers relating to such earned income tax credit1 or 7ii7 #ej1jjj4 7#b7 ,application of certain rules ,rules similar to the rules of subparagraphs 7,a71 7,b71 7,c71 and 7,d7 of subsection 7a77#d7 shall apply for purposes of this subsection4 7c7 ,american ,samoa 7#a7 ,in general ,with respect to calendar year #bjbj and each calendar year thereafter1 the ,secretary shall1 except as otherwise provided in this subsection1 make payments to ,american ,samoa equal to-- 7,a7 the lesser of-- 7i7 #ge percent of the cost to ,american ,samoa of the earned income tax credit for taxable years beginning in or with such calendar year1 or 7ii7 #ab1jjj1jjj1 plus 7,b7 in the case of calendar years #bjbj through #bjbd1 the lesser of-- 7i7 the expenditures made by ,american ,samoa during such calendar year for education efforts with respect to individual taxpayers and tax return preparers relating to such earned income tax credit1 or 7ii7 #ej1jjj4 7#b7 ,requirement to enact and maintain an earned income tax credit ,the ,secretary shall not make any payments under paragraph 7#a7 with respect to any calendar year unless ,american ,samoa has in effect an earned income tax credit for taxable years beginning in or with such calendar year which allows a refundable tax credit to individuals on the basis of the taxpayer's earned income which is designed to substantially increase workforce participation4 7#c7 ,inflation adjustment ,in the case of any calendar year after #bjbj1 the #ab1jjj1jjj amount in paragraph 7#a77;,a77ii7 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 such calendar year1 determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,any increase determined under this clause shall be rounded to the nearest multiple of #ajj1jjj4 7#d7 ,application of certain rules ,rules similar to the rules of subparagraphs 7,a71 7,b71 7,c71 and 7,d7 of subsection 7a77#d7 shall apply for purposes of this subsection4 7d7 ,treatment of payments ,for purposes of section #acbd of title #ca1 ,united ,states ,code1 the payments under this section shall be treated in the same manner as a refund due from a credit provision referred to in subsection 7b77#b7 of such section4 4 7b7 ,clerical amendment ,the table of sections for chapter #gg of such ,code is amended by adding at the end the following new item3 ,sec4 #gebi4 ,application of earned income tax credit to possessions of the ,united ,states4 4 ,,ii ,child ,tax ,credit #bja4 ,child tax credit fully refundable for #bjai and #bjbj 7a7 ,in general ,section #bd7;h7 is amended by adding at the end the following new paragraph3 7#h7 ,credit fully refundable for #bjai and #bjbj ,in the case of an individual other than a nonresident alien1 for any taxable year beginning in #bjai or #bjbj-- 7,a7 paragraph 7#e7 of this subsection shall not apply1 and 7,b7 the increase determined under the first sentence of subsection 7d77#a7 shall be the amount determined under subparagraph 7,a7 of such subsection 7determined without regard to paragraph 7#d7 of this subsection74 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjah4 #bjb4 ,payments to possessions 7a7 ,mirror code possession ,the ,secretary of the ,treasury shall pay to each possession of the ,united ,states with a mirror code tax system amounts equal to the loss to that possession by reason of the application of section #bd of the ,internal ,revenue ,code of #aihf with respect to taxable years beginning after #bjah4 ,such amounts shall be determined by the ,secretary of the ,treasury based on information provided by the government of the respective possession4 7b7 ,other possessions ,the ,secretary of the ,treasury shall pay to each possession of the ,united ,states which does not have a mirror code tax system amounts estimated by the ,secretary of the ,treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the application of section #bd of such ,code for taxable years beginning after #bjah if the provisions of such section had been in effect in such possession4 ,the preceding sentence shall not apply with respect to any possession of the ,united ,states unless such possession has a plan1 which has been approved by the ,secretary of the ,treasury1 under which such possession will promptly distribute such payments to the residents of such possession in a manner which replicates to the greatest degree practicable the benefits that would have been so provided to each such resident4 7c7 ,coordination with credit allowed against ,united ,states income taxes 7#a7 ,in general ,no credit shall be allowed against ,united ,states income taxes for any taxable year under section #bd of the ,internal ,revenue ,code of #aihf to any person-- 7,a7 to whom a credit is allowed against taxes imposed by a possession with a mirror code tax system by reason of the application of section #bd of such ,code in such possession for such taxable year2 or 7,b7 who is eligible for a payment under a plan described in subsection 7b7 with respect to such taxable year4 7#b7 ,restriction on refundable credit ,in the case of any person to whom a credit would be allowed against taxes imposed by a possession which does not have a mirror code tax system if the provisions of such section #bd had been in effect in such possession for the taxable year 7and who is not described in paragraph 7#a77;,b771 section #bd7;h77#h7 of such ,code 7as added by this ,act7 shall not apply to such person for such taxable year4 7d7 ,definitions and special rules 7#a7 ,possession of the ,united ,states ,for purposes of this section1 the term possession of the ,united ,states includes the ,commonwealth of ,puerto ,rico and the ,commonwealth of the ,northern ,mariana ,islands4 7#b7 ,mirror code tax system ,for purposes of this section1 the term mirror code tax system means1 with respect to any possession of the ,united ,states1 the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the ,united ,states as if such possession were the ,united ,states4 7#c7 ,treatment of payments ,for purposes of section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 the payments under this section shall be treated in the same manner as a refund due from the credit allowed under section #bd of the ,internal ,revenue ,code of #aihf4 ,,iii ,dependent ,care ,assistance #cja4 ,refundability and enhancement of child and dependent care tax credit 7a7 ,in general ,section #ba is amended by adding at the end the following new subsection3 7g7 ,special rules for #bjai and #bjbj ,in the case of any taxable year beginning in #bjai or #bjbj-- 7#a7 ,credit made refundable ,in the case of an individual other than a nonresident alien1 the credit allowed under subsection 7a7 shall be treated as a credit allowed under subpart ,c 7and not allowed under this subpart74 7#b7 ,increase in applicable percentage ,subsection 7a77#b7 shall be applied-- 7,a7 by substituting #ej percent for #ce percent1 and 7,b7 by substituting #abj1jjj for #ae1jjj4 7#c7 ,increase in dollar limit on amount creditable ,subsection 7c7 shall be applied-- 7,a7 by substituting #f1jjj for #c1jjj in paragraph 7#a7 thereof1 and 7,b7 by substituting twice the amount in effect under paragraph 7#a7 for #f1jjj in paragraph 7#b7 thereof4 7#d7 ,inflation adjustment of dollar amounts ,in the case of any taxable year beginning after #bjai1 the #abj1jjj amount in paragraph 7#b77;,b7 and the #f1jjj amount in paragraph 7#c77;,a7 shall each 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 #bjah for #bjaf in subparagraph 7,a77ii7 thereof4 ,if any increase determined under this paragraph is not a multiple of #ajj1 such increase shall be rounded to the next lowest multiple of #ajj4 4 7b7 ,conforming amendment ,section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 is amended by inserting #ba 7by reason of subsection 7g7 thereof71 before #be;,a4 7c7 ,coordination with possession tax systems ,section #ba7;g77#a7 of the ,internal ,revenue ,code of #aihf 7as added by this section7 shall not apply to any person-- 7#a7 to whom a credit is allowed against taxes imposed by a possession with a mirror code tax system by reason of the application of section #ba of such ,code in such possession for such taxable year2 or 7#b7 to whom a credit would be allowed against taxes imposed by a possession which does not have a mirror code tax system if the provisions of section #ba of such ,code had been in effect in such possession for such taxable year4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjah4 #cjb4 ,increase in exclusion for employer-provided dependent care assistance 7a7 ,in general ,section #abi7;a77#b7 is amended by adding at the end the following new subparagraph3 7,d7 ,special rule for #bjbj and #bjba ,in the case of any taxable year beginning in #bjbj or #bjba-- 7i7 ,in general ,subparagraph 7,a7 shall be applied be substituting #aj1ejj 7half such dollar amount for #e1jjj 7#b1ejj4 7ii7 ,inflation adjustment ,in the case of any taxable year beginning after #bjbj1 the #aj1ejj amount in clause 7i7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting #bjai for #bjaf in subparagraph 7,a77ii7 thereof4 ,any increase determined under the preceding sentence which is not a multiple of #ej1 shall be rounded to the nearest multiple of #ej4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 ,,iv ,certain ,fringe ,benefit ,expenses #dja4 ,repeal of inclusion of certain fringe benefit expenses in unrelated business taxable income 7a7 ,in general ,section #eab7;a7 is amended by striking paragraph 7#g74 7b7 ,effective date ,the amendment made by this subsection shall take effect as if included in the amendments made by section #acgjc of ,public ,law #aae-ig4