,i #aafth ,,congress #ast ,session ,h4 ,r4 #ebif ,,in ,,the ,,house ,,of ,,representatives ,december #d1 #bjai,mr4 ,allred 7for himself1 ,ms4 ,stefanik1 ,mr4 ,cunningham1 ,ms4 ,herrera ,beutler1 ,mr4 ,van ,drew1 ,mr4 ,gonzalez of ,ohio1 ,mr4 ,gottheimer1 and ,mr4 ,steil7 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 an election to advance future child tax credits in the year of birth or adoption4 #a4 ,short title ,this ,act may be cited as the ,advancing ,support for ,working ,families ,act4 #b4 ,election to advance child tax credit 7a7 ,in general ,section #bd of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7i7 ,election for advanced credit in year of birth or adoption 7#a7 ,in general ,in the case of a taxpayer who makes an election under this subsection with respect to any applicable qualifying child-- 7,a7 the amount of the credit allowed under subsection 7a7 with respect to such applicable qualifying child for the taxable year in which such applicable qualifying child is born or adopted shall be increased by the applicable amount1 and 7,b7 the amount determined under subsection 7d7 shall be increased by the amount of credit allowed to the taxpayer under this section by reason of subparagraph 7,a74 ,no election may be made under this subsection with respect to an applicable qualifying child unless the applicable qualifying child is alive at the time the election is made4 7#b7 ,offsetting reduction 7,a7 ,in general ,except as otherwise provided in this paragraph1 if the amount of the credit allowed to the taxpayer under subsection 7a7 is increased under paragraph 7#a71 the tax imposed by this chapter shall be increased by the applicable fraction of such increase for each taxable year in the offset period4 7,b7 ,applicable fraction ,for purposes of this paragraph1 the term applicable fraction means a fraction-- 7i7 the numerator of which is one1 and 7ii7 the denominator of which is the total number of years in the offset period4 7,c7 ,exceptions 7i7 ,death ,subparagraph 7,a7 shall not apply to any taxable year ending after the date of the death of-- 7,i7 the taxpayer1 or 7,,ii7 the applicable qualifying child with respect to the increase4 7ii7 ,deferment 7,i7 ,in general ,in the case of any taxpayer described in subclause 7,,ii7 for the taxable year1 no tax shall be imposed under subparagraph 7,a7 for such taxable year and the number of taxable years in the offset period shall be increased 7other than for purposes of subparagraph 7,b77ii77 by #a year4 7,,ii7 ,taxpayer described ,a taxpayer is described in this subclause for any taxable year if the earned income amount of the taxpayer for such taxable year is more than #bj percent less than the earned income amount of the taxpayer for the preceding taxable year and the taxpayer makes an election under this clause4 ,the ,secretary shall promulgate rules for calculating differences in the earned income amount of any taxpayer whose filing status is not the same as such taxpayer's filing status in the preceding taxable year4 7,,iii7 ,election ,an election made under this clause shall apply to all applicable qualifying children of the taxpayer with respect to whom an increase is allowed under this subsection and may not be made with respect to more than #c taxable years in any offset period4 7,d7 ,joint returns ,in the case of an increase in credit allowed under paragraph 7#a7 with respect to a joint return1 half of such increase shall be treated as having been allowed to each individual filing such return for purposes of this paragraph4 7,e7 ,return requirement ,if the tax imposed by this chapter for the taxable year is increased under this paragraph1 the taxpayer shall1 notwithstanding section #fjab1 be required to file a return with respect to the taxes imposed under this subtitle4 7,f7 ,offset period 7i7 ,in general ,except as provided in subparagraph 7,c77ii71 the term offset period means1 with respect to any increase under this paragraph1 the #aj taxable years beginning with the taxable year in which the applicable qualifying child is born or adopted4 7ii7 ,special rule ,in the case of a qualifying child who is adopted by the taxpayer and who is over the age of #e on the date the adoption becomes final1 the number of taxable years in the offset period shall be reduced by #a year for each year by which the age attained by the qualifying child on the date the adoption becomes final is over the age of #e4 7#c7 ,election to claim credit on prior year return ,in the case of an applicable qualifying child born or adopted after the date that is #abj days after the date of the enactment of this subsection1 a taxpayer may elect to treat such child as born or adopted on ,december #ca of the calendar year preceding such birth or adoption for purposes of this section4 7#d7 ,definitions ,for purposes of this subsection-- 7,a7 ,applicable qualifying child ,the term applicable qualifying child means any qualifying child other than an eligible foster child 7as defined in section #aeb7;f77#a77;,c774 7,b7 ,applicable amount 7i7 ,in general ,the applicable amount is the amount1 not to exceed the maximum credit amount1 elected by the taxpayer4 7ii7 ,maximum credit amount 7,i7 ,in general ,the maximum credit amount is #e1jjj4 7,,ii7 ,special rule for certain adopted children ,in the case of a qualifying child who is adopted by the taxpayer and who is over the age of #e on the date the adoption becomes final1 the maximum credit amount shall be reduced by #ejj for each year by which the age attained by the qualifying child on the date the adoption becomes final is over the age of #e4 7,c7 ,earned income amount ,the term earned income amount means the amount of earned income 7within the meaning of section #cb7 which is taken into account in computing taxable income for the taxable year4 ,for purposes of the preceding sentence1 any amount excluded from gross income by reason of section #aab shall be treated as earned income which is taken into account in computing taxable income for the taxable year4 7#e7 ,special rule for certain low-income individuals 7,a7 ,in general ,in the case of a taxpayer described in subparagraph 7,b7-- 7i7 the applicable amount shall not exceed the lesser of-- 7,i7 the maximum credit amount1 or 7,,ii7 the applicable percentage of the earned income amount of the taxpayer for the taxable year1 and 7ii7 paragraph 7#b77;,f7 shall be applied-- 7,i7 by substituting #ae taxable years for #aj taxable years in clause 7i7 thereof1 and 7,,ii7 by substituting age of #j for age of #e each place it appears in clause 7ii74 7,b7 ,taxpayer described ,a taxpayer is described in this subparagraph if the increase in credits allowed under subpart ,c for the taxable year by reason of subsection 7d77#a7 7determined without regard to paragraph 7#a77;,b77 is less than the amount that would be so determined if subsection 7d77#a7 were applied without regard to subparagraph 7,b7 thereof4 7,c7 ,applicable percentage ,for purposes of subparagraph 7,a7-- 7i7 ,in general ,the applicable percentage is #be percent4 7ii7 ,special rule for certain adopted children ,in the case of a qualifying child who is adopted by the taxpayer and who is over the age of #e on the date the adoption becomes final1 the applicable percentage shall be reduced by #b4e percentage points for each year by which the age attained by the qualifying child on the date the adoption becomes final is over the age of #e4 7#f7 ,special rule for year of birth or adoption 7,a7 ,in general ,in the case of a qualifying child who is born or adopted during the taxable year and with respect to whom an election is made under this subsection-- 7i7 subsection 7h77#g7 shall not apply1 and 7ii7 no credit shall be allowed under this section with respect to such qualifying child unless the taxpayer includes one of the following3 7,i7 ,in the case of a qualifying child who is adopted1 the adoption taxpayer identification number of such child4 7,,ii7 ,a social security number 7within the meaning of subsection 7h77#g77 of such child4 7,,iii7 ,such documentation as determined by the ,secretary as appropriate to establish that the qualifying child qualifies for a social security number 7within the meaning of subsection 7h77#g774 7,b7 ,acceleration 7i7 ,in general ,in any case in which a taxpayer does not include a social security number 7within the meaning of subsection 7h77#g77 of a qualifying child with respect to whom an election is made under this subsection on the return of tax for the taxable year of birth or adoption-- 7,i7 the tax imposed by this chapter for the taxable year succeeding the taxable year in which the birth or adoption of the qualifying child occurs shall be increased by the excess of the amount of the increase in credit under paragraph 7#a7 over the amounts of tax imposed by paragraph 7#b7 for the preceding taxable year1 and 7,,ii7 paragraph 7#b7 shall not apply with respect to such increase for such taxable year or any subsequent taxable year4 ,for purposes of this title1 any increase in tax under this subparagraph shall be treated in the same manner as an increase in tax under paragraph 7#b74 7ii7 ,exception if social security number provided ,clause 7i7 shall not apply if the taxpayer includes on the return of tax for the taxable year succeeding the taxable year in which the birth or adoption of the qualifying child occurs the social security number 7within the meaning of subsection 7h77#g77 of such qualifying child4 7#g7 ,administration and regulations ,the ,secretary shall take such steps as necessary1 including through regulations and other guidance1 in order to-- 7,a7 enable and encourage taxpayers to claim an increased credit under this subsection as soon as practical after the birth or adoption of a child1 including through a process available on the internet1 7,b7 expedite the processing of refunds in connection with an election to claim the increased credit on a prior year return under paragraph 7#c71 7,c7 prevent fraud and abuse of the increased credit1 including1 if necessary1 through the submission of additional third party information related to the birth or adoption of a child with respect to whom an increased credit is claimed under this subsection1 and 7,d7 provide annual information to electing taxpayers relating to outstanding liability with respect to offsetting reductions under paragraph 7#b74 4 7b7 ,credits not allowed against offset ,section #bf7;b77#b7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of subparagraph 7,x71 by striking the period at the end of subparagraph 7,y7 and inserting 1 and1 and by adding at the end the following new subparagraph3 7,z7 section #bd7;i77#b7 7relating to offset of advanced child tax credit in year of birth or adoption74 4 7c7 ,math error authority ,section #fbac7;g77#b7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of subparagraph 7,p71 by striking the period at the end of subparagraph 7,q7 and inserting 1 and1 and by inserting after subparagraph 7,q7 the following new subparagraph3 7,r7 in the case of a taxpayer to whom section #bd7;i77#b7 applies1 an omission of correct information relating to the amount of any increase allowed under section #bd7;i71 the applicable fraction 7as defined in such section7 of such increase1 or the determination of whether the taxpayer is described in section #bd7;i77#b77;,c77ii77,,ii74 4 7d7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 7#b7 ,special rule for election to claim credit on prior year return ,in the case of a taxpayer who makes an election under section #bd7;i77#c7 7as added by subsection 7a77 with respect to a child born before ,january #a1 #bjba 7determined without regard to such section71 the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjah4 7e7 ,,gao ,study 7#a7 ,in general ,not later than #b years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report on taxpayers making an election under section #bd7;i7 of the ,internal ,revenue ,code of #aihf1 as added by subsection 7a74 7#b7 ,matters included ,the report submitted under paragraph 7#a7 shall include the following3 7,a7 ,the total number of taxpayers making such election for each month during #bjai1 and the average number of days occurring during the period beginning on the date on which such election is made and ending on the date on which the ,secretary of the ,treasury 7or the ,secretary's designee7 makes a determination that an increase under such section is allowed4 7,b7 ,the total number of taxpayers receiving an increased credit under such section during #bjai1 and the average number of days occurring during the period beginning on the date on which such election is made and ending on the date on which any refund related to such increase is paid4 7,c7 ,an identification of any excessive delay in any of the periods described in subparagraphs 7,a7 and 7,b71 and a description of the causes for such delay1 with recommendations to address those excessive delays4 7,d7 ,the total number of taxpayers making such election who failed to submit a social security number of the qualifying child or such other information required pursuant to section #bd7;i77#f77;,a7 of the ,internal ,revenue ,code of #aihf 7as added by subsection 7a771 and a description of the barriers preventing taxpayers from meeting such requirements1 with recommendations on how to increase taxpayer compliance and address delays caused by other ,state and ,federal agencies4 7,e7 ,the total number of elections for deferment under section #bd7;i77#b77;,c77ii7 of such ,code 7as added by subsection 7a77 and the number of such elections permitted4 7,f7 ,the total number of taxpayers not required to make offsetting increases in tax under section #bd7;i77#b77;,a7 of such ,code 7as added by subsection 7a77 due to the death of the applicable qualifying child or the taxpayer and the revenue impact of such exceptions4 7,g7 ,a list of regulatory and legislative options1 determined in consultation with family and medical leave experts1 on the feasibility of expanding ,federal tax benefits1 including through interaction with programs administered by ,states1 insurance companies1 and employers1 to support taxpayers who take different types of leave to which the ,family and ,medical ,leave ,act of #aiic 7#bi ,u4,s4,c4 #bfja et seq47 applies4