,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #ccjj  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #ah1 #bjai,mr4  
,neal introduc$ ! foll[+ bill2 :i* 0    
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to provide tax relief =  
work]s & families1 & = o!r purposes4    
#a4 ,%ort title2 etc  7a7 ,%ort title   
,?is ,act may be cit$ z ! ,economic     
,mobility ,act ( #bjai4  7b7 ,table (   
cont5ts ,! table ( cont5ts = ?is ,act is
 z foll[s3  ,sec4 #a4 ,%ort title2 etc4 
,title ,i--,e>n$ ,income ,tax ,cr$it    
,sec4 #aja4 ,/r5g!n+ ! e>n$ income tax  
cr$it = individuals ) no qualify+       
*ildr54 ,sec4 #ajb4 ,taxpay] eligible = 
*ildless e>n$ income cr$it 9 case (     
qualify+ *ildr5 :o fail to meet c]ta9   
id5tification requirem5ts4 ,sec4 #ajc4  
,cr$it all[$ 9 case ( c]ta9 sep>at$     
sp\ses4 ,sec4 #ajd4 ,elim9ation (       
disqualifi$ inve/m5t income te/4 ,sec4  
#aje4 ,application ( e>n$ income tax    
cr$it 9 possessions ( ! ,unit$ ,/ates4  

,title ,,ii--,*ild ,tax ,cr$it ,sec4    
#bja4 ,*ild tax cr$it fully refundable =
 #bjai & #bjbj4 ,sec4 #bjb4 ,paym5ts to 
possessions4 ,title ,,iii--,dep5d5t ,c>e
 ,assi/ance ,sec4 #cja4 ,refundability &
 enhancem5t ( *ild & dep5d5t c>e tax    
cr$it4 ,sec4 #cjb4 ,increase 9 exclusion
 = employ]-provid$ dep5d5t c>e          
assi/ance4 ,title ,,iv--,c]ta9 ,fr+e    
,b5efit ,exp5ses ,sec4 #dja4 ,repeal (  
inclusion ( c]ta9 fr+e b5efit exp5ses 9 
unrelat$ bus9ess taxable income4  7c7   
,am5dm5t ( #aihf ,code ,except z o!rwise
 expressly provid$1 :5ev] 9 ?is ,act an 
am5dm5t or repeal is express$ 9 t]ms (  
an am5dm5t to1 or repeal (1 a section or
 o!r provision1 ! ref]5ce %all be       
consid]$ to be made to a section or o!r 
provision ( ! ,int]nal ,rev5ue ,code (  
#aihf4  ,i ,e>n$ ,income ,tax ,cr$it    
#aja4 ,/r5g!n+ ! e>n$ income tax cr$it =
 individuals ) no qualify+ *ildr5  7a7  
,special rules = #bjai & #bjbj ,section 
#cb is am5d$ by add+ at ! end ! foll[+  
new subsection3  7n7 ,special rules =   

individuals )\t qualify+ *ildr5 ,9 !    
case ( any taxable ye> beg9n+ 9 #bjai or
 #bjbj--  7#a7 ,cr$it all[$ = c]ta9     
individuals ov] age #ah  7,a7 ,9 g5]al  
,except 9 ! case ( a full-"t /ud5t 7or1 
9 ! case ( a m>ri$ individual1 except if
 bo? ! individual & ! individual's sp\se
 are full-"t /ud5ts71 subsection        
7c77#a77;,a77ii77,,ii7 %all be appli$ by
 sub/itut+ age #ai = age #be4  7,b7     
,full-"t /ud5t ,= purposes ( ?is        
p>agraph1 ! t]m full-"t /ud5t means1 )  
respect to a taxable ye>1 an individual 
:o is an eligible /ud5t 7z def9$ 9      
section #be;,a7b77#c77 dur+ at lea/ #e  
cal5d> mon?s dur+ ! taxable ye>4  7#b7  
,increase 9 maximum age = cr$it         
,subsection 7c77#a77;,a77ii77,,ii7 %all 
be appli$ by sub/itut+ age #ff = age    
#fe4  7#c7 ,increase 9 cr$it & phase\t  
p]c5tages ,! table conta9$ 9 subsection 
7b77#a7 %all be appli$ by sub/itut+     
#ae4c = #g4fe ea* place x appe>s !re94  
7#d7 ,increase 9 e>n$ income & phase\t  
am\nts  7,a7 ,9 g5]al ,! table conta9$ 9

 subsection 7b77#b77;,a7 %all be        
appli$-- 7i7 by sub/itut+ #i1egj =      
#d1bbj1 &  7ii7 by sub/itut+ #aa1caj =  
#e1bhj4  7,b7 ,coord9ation ) inflation  
adju/m5t  7i7 ,9 g5]al ,9 ! case ( any  
taxable ye> beg9n+ aft] #bjai1 ! #i1egj 
& #aa1caj am\nts 9 subp>agraph 7,a7 %all
 ea* be increas$ 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> beg9s1 det]m9$ by         
sub/itut+ #bjah = #bjaf 9 subp>agraph   
7,a77ii7 !re(4  7ii7 ,r\nd+ ,if any     
increase "u clause 7i7 is n a multiple (
 #aj1 su* increase %all be r\nd$ to !   
ne>e/ multiple ( #aj4  7iii7            
,coord9ation ) o!r inflation adju/m5t   
,subsection 7j7 %all n apply to any     
doll> am\nt specifi$ 9 ?is p>agraph4  4 
7b7 ,in=mation return mat*+ ,z soon z   
practicable1 ! ,secret>y ( ! ,treasury  
7or ! ,secret>y's delegate7 %all develop
 & implem5t proc$ures = *eck+ an        
individual's claim = a cr$it "u section 

#cb ( ! ,int]nal ,rev5ue ,code ( #aihf1 
by reason ( subsection 7n77#a7 !re(1    
aga9/ any in=mation return made )       
respect to su* individual "u section    
#fjej,s 7relat+ to returns relat+ to    
high] education tuition & relat$        
exp5ses74  7c7 ,effective date ,!       
am5dm5t made by ?is section %all apply  
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjah4  #ajb4 ,taxpay] eligible =  
*ildless e>n$ income cr$it 9 case (     
qualify+ *ildr5 :o fail to meet c]ta9   
id5tification requirem5ts  7a7 ,9 g5]al 
,section #cb7;c77#a7 is am5d$ by /rik+  
subp>agraph 7,f74  7b7 ,effective date  
,! am5dm5t made by ?is section %all     
apply to taxable ye>s beg9n+ aft] ! date
 ( ! enactm5t ( ?is ,act4  #ajc4 ,cr$it 
all[$ 9 case ( c]ta9 sep>at$ sp\ses  7a7
 ,9 g5]al ,section #cb7;d7 is am5d$--   
7#a7 by /rik+ ,m>ri$ individuals4--,9 ! 
case ( & ins]t+ ! foll[+3  ,m>ri$       
individuals4-- 7#a7 ,9 g5]al ,9 ! case (
  2 &  7#b7 by add+ at ! end ! foll[+   
new p>agraph3  7#b7 ,det]m9ation (      

m>ital /atus ,= purposes ( ?is section--
 7,a7 ,9 g5]al ,except z provid$ 9      
subp>agraph 7,b71 m>ital /atus %all be  
det]m9$ "u section #ggjc7;a74  7,b7     
,special rule = sep>at$ sp\se ,an       
individual %all n be treat$ z m>ri$ if  
su* individual-- 7i7 is m>ri$ 7z det]m9$
 "u section #ggjc7;a77 & does n file a  
jo9t return = ! taxable ye>1  7ii7 lives
 ) a qualify+ *ild ( ! individual = m   
?an "o-half ( su* taxable ye>1 &  7iii7 
7,i7 dur+ ! la/ #f mon?s ( su* taxable  
ye>1 does n h ! same pr9cipal place (   
abode z ! individual's sp\se1 or  7,,ii7
 has a decree1 in/rum5t1 or agreem5t    
7o!r ?an a decree ( divorce7 describ$ 9 
section #aba7;d77#c77;,c7 ) respect to !
 individual's sp\se & is n a memb] ( !  
same h\sehold ) ! individual's sp\se by 
! end ( ! taxable ye>4  4  7b7 ,con=m+  
am5dm5ts  7#a7 ,section #cb7;c77#a77;,a7
 ( su* ,code is am5d$ by /rik+ ! la/    
s5t5ce4  7#b7 ,section                  
#cb7;c77#a77;,e77ii7 ( su* ,code is     
am5d$ by /rik+ 7)9 ! mean+ ( section    

#ggjc74  7#c7 ,section #cb7;d77#a7 ( su*
 ,code1 z am5d$ by subsection 7a71 is   
am5d$ by /rik+ 7)9 ! mean+ ( section    
#ggjc74  7c7 ,effective date ,! am5dm5ts
 made by ?is section %all apply to      
taxable ye>s beg9n+ aft] ! date ( !     
enactm5t ( ?is ,act4  #ajd4 ,elim9ation 
( disqualifi$ inve/m5t income te/  7a7  
,9 g5]al ,section #cb ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
subsection 7i74  7b7 ,con=m+ am5dm5ts   
7#a7 ,section #cb7;j77#a7 ( su* ,code is
 am5d$ by /rik+ subsection 7b77#b7 &    
7i77#a7 & ins]t+ subsection 7b77#b74    
7#b7 ,section #cb7;j77#a77;,b77i7 ( su* 
,code is am5d$ by /rik+ subsections     
7b77#b77;,a7 & 7i77#a7 & ins]t+         
subsection 7b77#b77;,a74  7#c7 ,section 
#cb7;j77#b7 ( su* ,code is am5d$--  7,a7
 by /rik+ subp>agraph 7,b72 &  7,b7 by  
/rik+ ,r\nd+4-- & all t foll[s ?r\gh ,if
 any doll> am\nt & ins]t+ ! foll[+3     
,r\nd+4--,if any doll> am\nt4  7c7      
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      

beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #aje4 ,application ( e>n$ income 
tax cr$it 9 possessions ( ! ,unit$      
,/ates  7a7 ,9 g5]al ,*apt] #gg ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#gebi4 ,application ( e>n$ income tax   
cr$it to possessions ( ! ,unit$ ,/ates  
7a7 ,pu]to ,rico  7#a7 ,9 g5]al ,)      
respect to cal5d> ye> #bjbj & ea* cal5d>
 ye> !reaft]1 ! ,secret>y %all1 except z
 o!rwise provid$ 9 ?is subsection1 make 
paym5ts to ,pu]to ,rico equal to--  7,a7
 ! specifi$ mat*+ am\nt = su* cal5d>    
ye>1 plus  7,b7 9 ! case ( cal5d> ye>s  
#bjbj ?r\gh #bjbd1 ! less] (--  7i7 !   
exp5ditures made by ,pu]to ,rico dur+   
su* cal5d> ye> = education ef=ts )      
respect to individual taxpay]s & tax    
return prep>]s relat+ to ! e>n$ income  
tax cr$it1 or  7ii7 #a1jjj1jjj4  7#b7   
,requirem5t to re=m e>n$ income tax     
cr$it ,! ,secret>y %all n make any      
paym5ts "u p>agraph 7#a7 ) respect to   
any cal5d> ye> unless ,pu]to ,rico has 9

 effect an e>n$ income tax cr$it =      
taxable ye>s beg9n+ 9 or ) su* cal5d>   
ye> :i* 7relative to ! e>n$ income tax  
cr$it :i* 0 9 effect = taxable ye>s     
beg9n+ 9 or ) cal5d> ye> #bjai7         
increases ! p]c5tage ( e>n$ income :i*  
is all[$ z a cr$it = ea* gr\p (         
individuals ) respect to :i* su*        
p]c5tage is sep>ately /at$ or det]m9$ 9 
a mann] design$ to sub/antially increase
 work=ce p>ticipation4  7#c7 ,specifi$  
mat*+ am\nt ,= purposes ( ?is           
subsection-- 7,a7 ,9 g5]al ,! t]m       
specifi$ mat*+ am\nt means1 ) respect to
 any cal5d> ye>1 ! less] (--  7i7 !     
excess 7if any7 (-- 7,i7 ! co/ to ,pu]to
 ,rico ( ! e>n$ income tax cr$it =      
taxable ye>s beg9n+ 9 or ) su* cal5d>   
ye>1 ov]  7,,ii7 ! base am\nt = su*     
cal5d> ye>1 or  7ii7 ! product ( #c1    
multipli$ by ! base am\nt = su* cal5d>  
ye>4  7,b7 ,base am\nt  7i7 ,base am\nt 
= #bjbj ,9 ! case ( cal5d> ye> #bjbj1 ! 
t]m base am\nt means ! great] (-- 7,i7 !
 co/ to ,pu]to ,rico ( ! e>n$ income tax

 cr$it = taxable ye>s beg9n+ 9 or )     
cal5d> ye> #bjai 7r\nd$ to ! ne>e/      
multiple ( #a1jjj1jjj71 or  7,,ii7      
#bjj1jjj1jjj4  7ii7 ,inflation adju/m5t 
,9 ! case ( any cal5d> ye> aft] #bjbj1 !
 t]m base am\nt means ! doll> am\nt     
det]m9$ "u clause 7i7 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 =
 su* cal5d> ye>1 det]m9$ by sub/itut+   
cal5d> ye> #bjai = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  ,any am\nt  
det]m9$ "u ?is clause %all be r\nd$ to !
 ne>e/ multiple ( #a1jjj1jjj4  7#d7     
,rules relat$ to paym5ts & reports  7,a7
 ,tim+ ( paym5ts ,! ,secret>y %all make 
paym5ts "u p>agraph 7#a7 = any cal5d>   
ye>-- 7i7 aft] receipt ( ! report       
describ$ 9 subp>agraph 7,b7 = su* cal5d>
 ye>1 &  7ii7 except z provid$ 9 clause 
7i71 )9 a reasonable p]iod ( "t be=e !  
due date = individual income tax returns
 7z det]m9$ "u ! laws ( ,pu]to ,rico7 = 
taxable ye>s :i* began on ! fir/ day (  

su* cal5d> ye>4  7,b7 ,annual reports ,)
 respect to cal5d> ye> #bjbj & ea*      
cal5d> ye> !reaft]1 ,pu]to ,rico %all   
provide to ! ,secret>y a report :i* %all
 include--  7i7 an e/imate ( ! co/s     
describ$ 9 p>agraphs 7#a77;,b77i7 &     
7#c77;,a77i77,i7 ) respect to su* cal5d>
 ye>1 &  7ii7 a /atem5t ( su* co/s )    
respect to ! prec$+ cal5d> ye>4  7,c7   
,adju/m5ts  7i7 ,9 g5]al ,9 ! ev5t t any
 e/imate ( an am\nt is m or less ?an !  
actual am\nt z lat] det]m9$ & any paym5t
 "u p>agraph 7#a7 0 det]m9$ on ! basis (
 su* e/imate1 prop] paym5t %all be made 
by1 or to1 ! ,secret>y 7z ! case may be7
 z soon z practicable aft] ! det]m9ation
 t su* e/imate 0 inaccurate4 ,prop]     
adju/m5t %all be made 9 ! am\nt ( any   
subsequ5t paym5ts made "u p>agraph 7#a7 
to ! ext5t t prop] paym5t is n made "u !
 prec$+ s5t5ce be=e su* subsequ5t       
paym5ts4  7ii7 ,additional reports ,!   
,secret>y may require su* additional    
p]iodic reports ( ! in=mation describ$ 9
 subp>agraph 7,b7 z ! ,secret>y det]m9es

 appropriate to facilitate timely       
adju/m5ts "u clause 7i74  7,d7          
,det]m9ation ( co/ ( e>n$ income tax    
cr$it ,= purposes ( ?is subsection1 !   
co/ to ,pu]to ,rico ( ! e>n$ income tax 
cr$it %all be det]m9$ by ! ,secret>y on 
! basis ( ! laws ( ,pu]to ,rico & %all  
include r$uctions 9 rev5ues receiv$ by  
,pu]to ,rico by reason ( su* cr$it &    
refunds attributable to su* cr$it1 b    
%all n include any adm9i/rative co/s )  
respect to su* cr$it4  7,e7 ,prev5tion (
 manipulation ( base am\nt ,no paym5ts  
%all be made "u p>agraph 7#a7 if ! e>n$ 
income tax cr$it z 9 effect 9 ,pu]to    
,rico = taxable ye>s beg9n+ 9 or )      
cal5d> ye> #bjai is modifi$ aft] ! date 
( ! enactm5t ( ?is subsection4  7b7     
,possessions ) mirror code tax sy/ems   
7#a7 ,9 g5]al ,) respect to cal5d> ye>  
#bjbj & ea* cal5d> ye> !reaft]1 !       
,secret>y %all1 except z o!rwise provid$
 9 ?is subsection1 make paym5ts to !    
,virg9 ,isl&s1 ,guam1 & ! ,commonweal? (
 ! ,nor!rn ,m>iana ,isl&s equal to--    

7,a7 #ge p]c5t ( ! co/ to su* possession
 ( ! e>n$ income tax cr$it = taxable    
ye>s beg9n+ 9 or ) su* cal5d> ye>1 plus 
7,b7 9 ! case ( cal5d> ye>s #bjbj ?r\gh 
#bjbd1 ! less] (-- 7i7 ! exp5ditures    
made by su* possession dur+ su* cal5d>  
ye> = education ef=ts ) respect to      
individual taxpay]s & tax return prep>]s
 relat+ to su* e>n$ income tax cr$it1 or
  7ii7 #ej1jjj4  7#b7 ,application (    
c]ta9 rules ,rules simil> to ! rules (  
subp>agraphs 7,a71 7,b71 7,c71 & 7,d7 ( 
subsection 7a77#d7 %all apply = purposes
 ( ?is subsection4  7c7 ,am]ican ,samoa 
7#a7 ,9 g5]al ,) respect to cal5d> ye>  
#bjbj & ea* cal5d> ye> !reaft]1 !       
,secret>y %all1 except z o!rwise provid$
 9 ?is subsection1 make paym5ts to      
,am]ican ,samoa equal to--  7,a7 ! less]
 (-- 7i7 #ge p]c5t ( ! co/ to ,am]ican  
,samoa ( ! e>n$ income tax cr$it =      
taxable ye>s beg9n+ 9 or ) su* cal5d>   
ye>1 or  7ii7 #ab1jjj1jjj1 plus  7,b7 9 
! case ( cal5d> ye>s #bjbj ?r\gh #bjbd1 
! less] (--  7i7 ! exp5ditures made by  

,am]ican ,samoa dur+ su* cal5d> ye> =   
education ef=ts ) respect to individual 
taxpay]s & tax return prep>]s relat+ to 
su* e>n$ income tax cr$it1 or  7ii7     
#ej1jjj4  7#b7 ,requirem5t to enact &   
ma9ta9 an e>n$ income tax cr$it ,!      
,secret>y %all n make any paym5ts "u    
p>agraph 7#a7 ) respect to any cal5d>   
ye> unless ,am]ican ,samoa has 9 effect 
an e>n$ income tax cr$it = taxable ye>s 
beg9n+ 9 or ) su* cal5d> ye> :i* all[s a
 refundable tax cr$it to individuals on 
! basis ( ! taxpay]'s e>n$ income :i* is
 design$ to sub/antially increase       
work=ce p>ticipation4  7#c7 ,inflation  
adju/m5t ,9 ! case ( any cal5d> ye> aft]
 #bjbj1 ! #ab1jjj1jjj am\nt 9 p>agraph  
7#a77;,a77ii7 %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 =
 su* cal5d> ye>1 det]m9$ by sub/itut+   
cal5d> ye> #bjai = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  ,any        
increase det]m9$ "u ?is clause %all be  

r\nd$ to ! ne>e/ multiple ( #ajj1jjj4   
7#d7 ,application ( c]ta9 rules ,rules  
simil> to ! rules ( subp>agraphs 7,a71  
7,b71 7,c71 & 7,d7 ( subsection 7a77#d7 
%all apply = purposes ( ?is subsection4 
7d7 ,treatm5t ( paym5ts ,= purposes (   
section #acbd ( title #ca1 ,unit$ ,/ates
 ,code1 ! paym5ts "u ?is section %all be
 treat$ 9 ! same mann] z a refund due f 
a cr$it provision ref]r$ to 9 subsection
 7b77#b7 ( su* section4  4  7b7 ,cl]ical
 am5dm5t ,! table ( sections = *apt] #gg
 ( su* ,code is am5d$ by add+ at ! end !
 foll[+ new item3  ,sec4 #gebi4         
,application ( e>n$ income tax cr$it to 
possessions ( ! ,unit$ ,/ates4  4  ,,ii 
,*ild ,tax ,cr$it  #bja4 ,*ild tax cr$it
 fully refundable = #bjai & #bjbj  7a7  
,9 g5]al ,section #bd7;h7 is am5d$ by   
add+ at ! end ! foll[+ new p>agraph3    
7#h7 ,cr$it fully refundable = #bjai &  
#bjbj ,9 ! case ( an individual o!r ?an 
a nonresid5t ali51 = any taxable ye>    
beg9n+ 9 #bjai or #bjbj--  7,a7 p>agraph
 7#e7 ( ?is subsection %all n apply1 &  

7,b7 ! increase det]m9$ "u ! fir/ s5t5ce
 ( subsection 7d77#a7 %all be ! am\nt   
det]m9$ "u subp>agraph 7,a7 ( su*       
subsection 7det]m9$ )\t reg>d to        
p>agraph 7#d7 ( ?is subsection74  4  7b7
 ,effective date ,! am5dm5t made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjah4  #bjb4 
,paym5ts to possessions  7a7 ,mirror    
code possession ,! ,secret>y ( !        
,treasury %all pay to ea* possession ( !
 ,unit$ ,/ates ) a mirror code tax sy/em
 am\nts equal to ! loss to t possession 
by reason ( ! application ( section #bd 
( ! ,int]nal ,rev5ue ,code ( #aihf )    
respect to taxable ye>s beg9n+ aft]     
#bjah4 ,su* am\nts %all be det]m9$ by ! 
,secret>y ( ! ,treasury bas$ on         
in=mation provid$ by ! gov]nm5t ( !     
respective possession4  7b7 ,o!r        
possessions ,! ,secret>y ( ! ,treasury  
%all pay to ea* possession ( ! ,unit$   
,/ates :i* does n h a mirror code tax   
sy/em am\nts e/imat$ by ! ,secret>y ( ! 
,treasury z be+ equal to ! aggregate    

b5efits t w\ld h be5 provid$ to resid5ts
 ( su* possession by reason ( !         
application ( section #bd ( su* ,code = 
taxable ye>s beg9n+ aft] #bjah if !     
provisions ( su* section _h be5 9 effect
 9 su* possession4 ,! prec$+ s5t5ce %all
 n apply ) respect to any possession ( !
 ,unit$ ,/ates unless su* possession has
 a plan1 :i* has be5 approv$ by !       
,secret>y ( ! ,treasury1 "u :i* su*     
possession w promptly di/ribute su*     
paym5ts to ! resid5ts ( su* possession 9
 a mann] :i* replicates to ! greate/    
degree practicable ! b5efits t w\ld h   
be5 s provid$ to ea* su* resid5t4  7c7  
,coord9ation ) cr$it all[$ aga9/ ,unit$ 
,/ates income taxes  7#a7 ,9 g5]al ,no  
cr$it %all be all[$ aga9/ ,unit$ ,/ates 
income taxes = any taxable ye> "u       
section #bd ( ! ,int]nal ,rev5ue ,code (
 #aihf to any p]son--  7,a7 to :om a    
cr$it is all[$ aga9/ taxes impos$ by a  
possession ) a mirror code tax sy/em by 
reason ( ! application ( section #bd (  
su* ,code 9 su* possession = su* taxable

 ye>2 or  7,b7 :o is eligible = a paym5t
 "u a plan describ$ 9 subsection 7b7 )  
respect to su* taxable ye>4  7#b7       
,re/riction on refundable cr$it ,9 !    
case ( any p]son to :om a cr$it w\ld be 
all[$ aga9/ taxes impos$ by a possession
 :i* does n h a mirror code tax sy/em if
 ! provisions ( su* section #bd _h be5 9
 effect 9 su* possession = ! taxable ye>
 7& :o is n describ$ 9 p>agraph         
7#a77;,b771 section #bd7;h77#h7 ( su*   
,code 7z add$ by ?is ,act7 %all n apply 
to su* p]son = su* taxable ye>4  7d7    
,def9itions & special rules  7#a7       
,possession ( ! ,unit$ ,/ates ,=        
purposes ( ?is section1 ! t]m possession
 ( ! ,unit$ ,/ates includes !           
,commonweal? ( ,pu]to ,rico & !         
,commonweal? ( ! ,nor!rn ,m>iana ,isl&s4
  7#b7 ,mirror code tax sy/em ,=        
purposes ( ?is section1 ! t]m mirror    
code tax sy/em means1 ) respect to any  
possession ( ! ,unit$ ,/ates1 ! income  
tax sy/em ( su* possession if ! income  
tax liability ( ! resid5ts ( su*        

possession "u su* sy/em is det]m9$ by   
ref]5ce to ! income tax laws ( ! ,unit$ 
,/ates z if su* possession 7 ! ,unit$   
,/ates4  7#c7 ,treatm5t ( paym5ts ,=    
purposes ( section #acbd7;b77#b7 ( title
 #ca1 ,unit$ ,/ates ,code1 ! paym5ts "u 
?is section %all be treat$ 9 ! same     
mann] z a refund due f ! cr$it all[$ "u 
section #bd ( ! ,int]nal ,rev5ue ,code (
 #aihf4  ,,iii ,dep5d5t ,c>e ,assi/ance 
#cja4 ,refundability & enhancem5t ( *ild
 & dep5d5t c>e tax cr$it  7a7 ,9 g5]al  
,section #ba is am5d$ by add+ at ! end !
 foll[+ new subsection3  7g7 ,special   
rules = #bjai & #bjbj ,9 ! case ( any   
taxable ye> beg9n+ 9 #bjai or #bjbj--   
7#a7 ,cr$it made refundable ,9 ! case ( 
an individual o!r ?an a nonresid5t ali51
 ! cr$it all[$ "u subsection 7a7 %all be
 treat$ z a cr$it all[$ "u subp>t ,c 7& 
n all[$ "u ?is subp>t74  7#b7 ,increase 
9 applicable p]c5tage ,subsection       
7a77#b7 %all be appli$-- 7,a7 by        
sub/itut+ #ej p]c5t = #ce p]c5t1 &  7,b7
 by sub/itut+ #abj1jjj = #ae1jjj4  7#c7 

,increase 9 doll> limit on am\nt        
cr$itable ,subsection 7c7 %all be       
appli$--  7,a7 by sub/itut+ #f1jjj =    
#c1jjj 9 p>agraph 7#a7 !re(1 &  7,b7 by 
sub/itut+ twice ! am\nt 9 effect "u     
p>agraph 7#a7 = #f1jjj 9 p>agraph 7#b7  
!re(4  7#d7 ,inflation adju/m5t ( doll> 
am\nts ,9 ! case ( any taxable ye>      
beg9n+ aft] #bjai1 ! #abj1jjj am\nt 9   
p>agraph 7#b77;,b7 & ! #f1jjj am\nt 9   
p>agraph 7#c77;,a7 %all ea* 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$ by sub/itut+ #bjah = #bjaf 9   
subp>agraph 7,a77ii7 !re(4  ,if any     
increase det]m9$ "u ?is p>agraph is n a 
multiple ( #ajj1 su* increase %all be   
r\nd$ to ! next l[e/ multiple ( #ajj4  4
  7b7 ,con=m+ am5dm5t ,section          
#acbd7;b77#b7 ( title #ca1 ,unit$ ,/ates
 ,code1 is am5d$ by ins]t+ #ba 7by      
reason ( subsection 7g7 !re(71 be=e     
#be;,a4  7c7 ,coord9ation ) possession  

tax sy/ems ,section #ba7;g77#a7 ( !     
,int]nal ,rev5ue ,code ( #aihf 7z add$  
by ?is section7 %all n apply to any     
p]son--  7#a7 to :om a cr$it is all[$   
aga9/ taxes impos$ by a possession ) a  
mirror code tax sy/em by reason ( !     
application ( section #ba ( su* ,code 9 
su* possession = su* taxable ye>2 or    
7#b7 to :om a cr$it w\ld be all[$ aga9/ 
taxes impos$ by a possession :i* does n 
h a mirror code tax sy/em if !          
provisions ( section #ba ( su* ,code _h 
be5 9 effect 9 su* possession = su*     
taxable ye>4  7d7 ,effective date ,!    
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjah4  #cjb4 ,increase 9 exclusion
 = employ]-provid$ dep5d5t c>e assi/ance
  7a7 ,9 g5]al ,section #abi7;a77#b7 is 
am5d$ by add+ at ! end ! foll[+ new     
subp>agraph3  7,d7 ,special rule = #bjbj
 & #bjba ,9 ! case ( any taxable ye>    
beg9n+ 9 #bjbj or #bjba-- 7i7 ,9 g5]al  
,subp>agraph 7,a7 %all be appli$ be     
sub/itut+ #aj1ejj 7half su* doll> am\nt 

= #e1jjj 7#b1ejj4  7ii7 ,inflation      
adju/m5t ,9 ! case ( any taxable ye>    
beg9n+ aft] #bjbj1 ! #aj1ejj am\nt 9    
clause 7i7 %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> beg9s1
 det]m9$ by sub/itut+ #bjai = #bjaf 9   
subp>agraph 7,a77ii7 !re(4  ,any        
increase det]m9$ "u ! prec$+ s5t5ce :i* 
is n a multiple ( #ej1 %all be r\nd$ to 
! ne>e/ multiple ( #ej4  4  7b7         
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjai4  ,,iv  
,c]ta9 ,fr+e ,b5efit ,exp5ses  #dja4    
,repeal ( inclusion ( c]ta9 fr+e b5efit 
exp5ses 9 unrelat$ bus9ess taxable      
income  7a7 ,9 g5]al ,section #eab7;a7  
is am5d$ by /rik+ p>agraph 7#g74  7b7   
,effective date ,! am5dm5t made by ?is  
subsection %all take effect z if includ$
 9 ! am5dm5ts made by section #acgjc (  
,public ,law #aae-ig4