,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #aach  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #aj1 #bjai,mr4  
,br[n 7= himself1 ,mr4 ,b5net1 ,mr4     
,durb91 ,ms4 ,baldw91 ,mr4 ,blum5?al1   
,mr4 ,book]1 ,ms4 ,cantwell1 ,mr4 ,c>d91
 ,mr4 ,c>p]1 ,mr4 ,casey1 ,mr4 ,coons1  
,ms4 ,cortez ,ma/o1 ,ms4 ,duckwor?1     
,mrs4 ,fe9/e91 ,mrs4 ,gillibr&1 ,ms4    
,h>ris1 ,ms4 ,hassan1 ,mr4 ,he9ri*1 ,ms4
 ,hirono1 ,mr4 ,jones1 ,mr4 ,ka9e1 ,mr4 
,k+1 ,ms4 ,klobu*>1 ,mr4 ,leahy1 ,mr4   
,man*91 ,mr4 ,m>key1 ,mr4 ,m55dez1 ,mr4 
,m]kley1 ,mr4 ,murphy1 ,mrs4 ,murray1   
,mr4 ,pet]s1 ,mr4 ,re$1 ,ms4 ,ros51 ,mr4
 ,s&]s1 ,mr4 ,s*atz1 ,mr4 ,s*um]1 ,mrs4 
,%ahe51 ,ms4 ,smi?1 ,ms4 ,/ab5[1 ,mr4   
,te/]1 ,mr4 ,udall1 ,mr4 ,van ,holl51   
,mr4 ,w>n]1 ,ms4 ,w>r51 ,mr4 ,:iteh\se1 
& ,mr4 ,wyd57 introduc$ ! foll[+ bill2  
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 exp& ! e>n$ income & *ild tax cr$its1 &
 = o!r purposes4  #a4 ,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  #b4 
,expansion ( e>n$ income cr$it  7a7     
,cr$it p]c5tage2 phase\t p]c5tage ,!    
table conta9$ 9 p>agraph 7#a7 ( section 
#cb7;b7 is am5d$ to read z foll[s3  ,9 !
 case ( an eligible individual )3,!     
cr$it p]c5tage is3,! phase\t p]c5tage   
is3#a qualify+ *ild#db4eae4ihb qualify+ 
*ildr5#ejba4jfc or m qualify+           
*ildr5#eb4eba4jf,no qualify+            
*ildr5#bjae4ih4 4  7b7 ,e>n$ income     
am\nt2 phase\t am\nt  7#a7 ,9 g5]al ,!  
table conta9$ 9 subp>agraph 7,a7 (      
section #cb7;b77#b7 is am5d$ to read z  
foll[s3  ,9 ! case ( an eligible        
individual )3,! e>n$ income am\nt is3,! 
phase\t am\nt is3#a qualify+            
*ild#aj1ahjah1ffjb or m qualify+        
*ildr5#ad1bijah1ffj,no qualify+         

*ildr5#aj1ahjaa1chj4 4  7#b7 ,jo9t fil]s
 ,subp>agraph 7,b7 ( section #cb7;b77#b7
 is am5d$ by /rik+ #e1jjj & ins]t+      
#e1fij4  7#c7 ,adju/m5t = inflation     
,p>agraph 7#a7 ( section #cb7;j7 is     
am5d$--  7,a7 by /rik+ aft] #bjae &     
ins]t+ aft] #bjah2  7,b7 by /rik+       
subsections 7b77#b77;,a7 & 9 subp>agraph
 7,b77i7 & ins]t+ subsection2  7,c7 by  
/rik+ ! #e1jjj am\nt 9 subsection       
7b77#b77;,b7 9 subp>agraph 7,b77ii7 &   
ins]t+ am\nts 9 subsection 7b77#b72 &   
7,d7 by /rik+ cal5d> ye> #bjjh 9        
subp>agraph 7,b77ii7 & ins]t+ cal5d> ye>
 #bjag4  7c7 ,age ( eligible individual 
,clause 7ii7 ( section #cb7;c77#a77;,a7 
is am5d$-- 7#a7 by /rik+ age #be 9      
subclause 7,,ii7 & ins]t+ age #ai2  7#b7
 by /rik+ age #fe 9 subclause 7,,ii7 &  
ins]t+ age #fh2  7#c7 by /rik+ & at !   
end ( subclause 7,,ii72  7#d7 by /rik+ !
 p]iod at ! end ( subclause 7,,iii7 &   
ins]t+ 1 &2 &  7#e7 by add+ at ! end !  
foll[+ new subclause3  7,,iv7 9 ! case (
 an individual :o has n atta9$ age #be  

be=e ! close ( ! taxable ye>1 su*       
individual is n a /ud5t 7z def9$ 9      
section #aeb7;f77#b774  4  7d7 ,advance 
paym5t ( e>n$ income cr$it  7#a7 ,9     
g5]al ,*apt] #be ( subtitle ,c is am5d$ 
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 ( ! cr$it 
provid$ "u section #cb z 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> #bjaf 9  

subp>agraph 7,a77ii7 !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  7#b7 ,coord9ation ) advance
 paym5ts ,section #cb 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  7#c7 ,fil+ requirem5t ,section 
#fjab7;a7 is am5d$-- 7,a7 9 p>agraph    
7#g71 by /rik+ & at ! end2  7,b7 9      
p>agraph 7#h71 by add+ & at ! end2 &    
7,c7 by ins]t+ aft] p>agraph 7#h7 !     
foll[+ new p>agraph3  7#i7 e individual 
:o receives paym5ts dur+ ! cal5d> ye> 9 
:i* ! taxable ye> beg9s "u section      
#cejg4  4  7#d7 ,receipts = employees   
,section #fjea7;a7 is am5d$ 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 
7#e7 ,cl]ical am5dm5t ,! table (        

sections = *apt] #be ( subtitle ,c is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #cejf ! foll[+ new item3  ,sec4 
#cejg4 ,advance paym5t ( e>n$ income    
cr$it4  4  7e7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjah4  #c4 ,p]man5t expansion &   
modification ( *ild tax cr$it  7a7      
,p]man5ce ( c]ta9 special rules  7#a7   
,cr$it am\nt ,subsection 7a7 ( section  
#bd is am5d$ by /rik+ #a1jjj & ins]t+   
#b1jjj4  7#b7 ,?re%old am\nt ,p>agraph  
7#b7 ( section #bd7;b7 is am5d$-- 7,a7  
by /rik+ #aaj1jjj 9 subp>agraph 7,a7 &  
ins]t+ #bjj1jjj2  7,b7 by /rik+ #ge1jjj 
9 subp>agraph 7,b7 & ins]t+ #aej1jjj2 & 
7,c7 by /rik+ #ee1jjj 9 subp>agraph 7,c7
 & ins]t+ #ajj1jjj4  7#c7 ,p>tial cr$it 
all[$ = c]ta9 o!r dep5d5ts2 elim9ation (
 maximum am\nt ( refundable cr$it       
,subsection 7h7 ( section #bd is am5d$--
 7,a7 by /rik+ p>agraphs 7#a71 7#b71    
7#c71 7#e71 & 7#f7 & by r$esignat+      
p>agraphs 7#d7 & 7#g7 z p>agraphs 7#a7 &

 7#b71 respectively2  7,b7 by /rik+     
7aft] ! application ( p>agraph 7#b77 9  
subp>agraph 7,a7 ( p>agraph 7#a71 z s   
r$esignat$2  7,c7 by /rik+ p>agraph 7#g7
 9 subp>agraph 7,c7 ( p>agraph 7#a71 z s
 r$esignat$1 & ins]t+ p>agraph 7#b72    
7,d7 by ins]t+ = a taxable ye> beg9n+   
aft] ,decemb] #ca1 #bjag1 & be=e ,janu>y
 #a1 #bjbf1 aft] "u ?is section 9       
p>agraph 7#b71 z s r$esignat$2 &  7,e7  
by /rik+ = taxable ye>s #bjah ?r\gh     
#bjbe 9 ! head+4  7b7 ,increase 9 cr$it 
= "y *ildr5 ,subsection 7a7 ( section   
#bd1 z am5d$ by subsection 7a77#a71 is  
am5d$ by /rik+ #b1jjj & ins]t+ #b1jjj   
7#c1jjj 9 ! case ( a qualify+ *ild :o   
has n atta9$ age #f74  7c7 ,adju/m5t =  
inflation ,section #bd is am5d$ by      
r$esignat+ subsection 7h71 z am5d$ by   
subsection 7a77#c7 ( ?is section1 z     
subsection 7i7 & by ins]t+ aft]         
subsection 7g7 ! foll[+ new subsection3 
7h7 ,adju/m5t = inflation  7#a7 ,9 g5]al
 ,9 ! case ( any taxable ye> beg9n+ aft]
 #bjai1 ea* ( ! doll> am\nts 9          

subsection 7a7 %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$ by sub/itut+ cal5d> ye> #bjah = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 
!re(4  7#b7 ,r\nd+  ,if any am\nt z     
adju/$ "u p>agraph 7#a7 is n a multiple 
( #ej1 su* am\nt %all be r\nd$ to ! next
 l[e/ multiple ( #ej4  4  7d7           
,modification ( qualify+ *ild def9ition 
,p>agraph 7#a7 ( section #bd7;c7 is     
am5d$ by ins]t+ 1 det]m9$ )\t reg>d to  
p>agraph 7#a77;,d7 !re( aft] section    
#aeb7;c74  7e7 ,treatm5t z fully        
refundable  7#a7 ,cr$it mov$ to subp>t  
relat+ to refundable cr$its  7,a7 ,9    
g5]al ,! ,int]nal ,rev5ue ,code ( #aihf 
is am5d$--  7i7 by r$esignat+ section   
#bd1 z am5d$ by ?is section1 z section  
#cf;,c2 &  7ii7 by mov+ su* section1 z s
 r$esignat$1 f subp>t ,a ( "p ,,iv (    
sub*apt] ,a ( *apt] #a to ! location    
imm$iately aft] section #cf;,b 9 subp>t 

,c ( "p ,,iv ( sub*apt] ,a ( *apt] #a4  
7,b7 ,te*nical am5dm5ts  7i7 ,subsection
 7a7 ( section #cf;,c1 z mov$ &         
r$esignat$ by subp>agraph 7,a71 is am5d$
 by /rik+ ?is *apt] & ins]t+ ?is        
subtitle4  7ii7 ,section #cf;,c1 z s    
mov$ & r$esignat$1 is am5d$-- 7,i7 by   
/rik+ subsection 7d72 &  7,,ii7 by      
r$esignat+ subsection 7i7 z subsection  
7d71 & by mov+ su* subsection to !      
location imm$iately aft] subsection 7c74
  7,c7 ,p>tial cr$it = o!r dep5d5ts     
nonrefundable ,p>agraph 7#a7 (          
subsection 7d7 ( section #cf;,c1 z mov$ 
& r$esignat$ by subp>agraph 7,b77ii71 is
 am5d$ by add+ at ! end ! foll[+ new    
subp>agraph3  7,d7 ,portion ( cr$it     
nonrefundable ,! am\nt ( ! cr$it all[$  
"u ?is p>agraph--  7i7 %all n be treat$ 
z a cr$it all[$ "u ?is subp>t1 &  7ii7  
%all n be tak5 into acc\nt 9 det]m9+ !  
am\nt ( ! cr$it "u ?is section =        
purposes ( section #gebg;,a4  4  7,d7   
,cl]ical am5dm5ts  7i7 ,! table (       
sections = subp>t ,a ( "p ,,iv (        

sub*apt] ,a ( *apt] #a is am5d$ by /rik+
 ! item relat+ to section #bd4  7ii7 ,! 
table ( sections = subp>t ,c ( "p ,,iv (
 sub*apt] ,a ( *apt] #a is am5d$ by add+
 at ! end ! foll[+ new item3  ,sec4     
#cf;,c4 ,*ild tax cr$it4  4  7#b7       
,advance paym5t ( cr$it  7,a7 ,9 g5]al  
,section #cf;,c1 z am5d$ by ! prec$+    
provisions ( ?is section1 is am5d$ by   
add+ at ! end ! foll[+ new subsection3  
7i7 ,reconciliation ( cr$it & advance   
cr$it  7#a7 ,9 g5]al ,! am\nt ( ! cr$it 
all[$ "u ?is section = any taxable ye>  
%all be r$uc$ 7b n bel[ z]o7 by !       
aggregate am\nt ( any advance paym5ts ( 
su* cr$it "u section #gebg;,a = su*     
taxable ye>4  7#b7 ,excess advance      
paym5ts ,if ! aggregate am\nt ( advance 
paym5ts "u section #gebg;,a = ! taxable 
ye> exce$ ! am\nt ( ! cr$it all[$ "u ?is
 section = su* taxable ye> 7det]m9$ )\t 
reg>d to p>agraph 7#a771 ! tax impos$ by
 ?is *apt] = su* taxable ye> %all be    
increas$ by ! am\nt ( su* excess4  4    
7,b7 ,advance paym5t ,*apt] #gg is am5d$

 by ins]t+ aft] section #gebg ! foll[+  
new section3  #gebg;,a4 ,advance paym5t 
( *ild tax cr$it  7a7 ,9 g5]al ,z soon z
 practicable & n lat] ?an #a ye> aft] ! 
date ( ! enactm5t ( ?is section1 !      
,secret>y %all e/abli% a program = mak+ 
advance paym5ts ( ! cr$it all[$ "u      
section #cf;,c 7det]m9$ )\t reg>d to    
subsection 7i77#a7 ( su* section7 on a  
mon?ly basis1 or z frequ5tly z !        
,secret>y det]m9es to be adm9i/ratively 
feasible1 to taxpay]s all[$ su* cr$it4  
7b7 ,limitation  7#a7 ,9 g5]al ,!       
,secret>y may make paym5ts "u subsection
 7a7 only to ! ext5t t ! total am\nt (  
su* paym5ts made to any taxpay] dur+ !  
taxable ye> does n exce$ an am\nt equal 
to ! excess1 if any1 (--  7,a7 subject  
to p>agraph 7#b71 ! am\nt det]m9$ "u    
section #cf;,c ) respect to su* taxpay] 
7det]m9$ )\t reg>d to subsection 7i7 (  
su* section7 = su* taxable ye>1 ov]     
7,b7 ! e/imat$ tax impos$ by subtitle   
,a1 z r$uc$ by ! cr$its all[able "u     
subp>ts ,a & ,c 7) ! exception ( section

 #cf;,c7 ( su* "p ,,iv1 ) respect to su*
 taxpay] = su* taxable ye>1 z det]m9$ 9 
su* mann] z ! ,secret>y deems           
appropriate4  7#b7 ,application (       
?re%old am\nt limitation ,! program     
describ$ 9 subsection 7a7 %all make     
reasonable ef=ts to apply ! limitation (
 section #cf;,c7b7 ) respect to paym5ts 
made "u su* program4  4  7,c7 ,cl]ical  
am5dm5t ,! table ( sections = *apt] #gg 
is am5d$ by ins]t+ aft] ! item relat+ to
 section #gebg ! foll[+ new item3  ,sec4
 #gebg;,a4 ,advance paym5t ( *ild tax   
cr$it4  4  7#c7 ,con=m+ am5dm5ts  7,a7  
,subp>agraph 7,b7 ( section #de,r7f77#c7
 is am5d$ to read z foll[s3  7,b7       
,special rule ,any am\nts paid pursuant 
to an agreem5t "u section #caba7l7      
7relat+ to agreem5ts ent]$ into by      
,am]ican employ]s ) respect to =eign    
affiliates7 :i* are equival5t to ! taxes
 ref]r$ to 9 subp>agraph 7,a7 %all be   
treat$ z taxes ref]r$ to 9 su*          
subp>agraph4  4  7,b7 ,section          
#aeb7;f77#f77;,b77ii7 is am5d$ by /rik+ 

section #bd & ins]t+ section #cf;,c4    
7,c7 ,p>agraph 7#bf7 ( section #eja7;c7 
is am5d$ 9 ! flu% matt] at ! end by     
/rik+ section #bd7;c77 & ins]t+ section 
#cf;,c7c774  7,d7 ,section              
#fbaa7;b77#d77;,a7 is am5d$-- 7i7 by    
/rik+ #bd7;d712 &  7ii7 by /rik+ &      
#cf;,b1 #afh7k77#d7 & ins]t+ #cf;,b1 &  
#cf;,c4  7,e7 ,section #fbac7;g77#b7 is 
am5d$--  7i7 9 subp>agraph 7,i71 by     
/rik+ section #bd7;e7 & ins]t+ section  
#cf;,c7e72  7ii7 9 subp>agraph 7,l71 by 
/rik+ #bd1 or #cb & ins]t+ #cb1 or      
#cf;,c2 &  7iii7 9 subp>agraph 7,p7--   
7,i7 by /rik+ #bd7;g77#b7 & ins]t+      
#cf;,c7g77#b72 &  7,,ii7 by /rik+       
section #bd & ins]t+ section #cf;,c4    
7,f7 ,section #fdjb7m7 is am5d$ by /rik+
 section #bd 7by reason ( subsection 7d7
 !re(7 or #cb & ins]t+ section #cb or   
#cf;,c4  7,g7 ,section #ffie7;g77#b7 is 
am5d$ by /rik+ #bd1 #be;,a7a77#a71 or   
#cb & ins]t+ #be;,a7a77#a71 #cb1 or     
#cf;,c4  7,h7 ,p>agraph 7#b7 ( section  
#acbd7;b7 ( title #ca1 ,unit$ ,/ates    

,code1 is am5d$ by ins]t+ 1 #cf;,c7a7   
aft] #cf;,b4  7,i7 ,section             
#afac7;a77#aa7 ( ! ,social ,security    
,act 7#db ,u4,s4,c4 #achb;b7a77#aa77 is 
am5d$ by /rik+ section #bd ( ! ,int]nal 
,rev5ue ,code ( #aihf 7relat+ to *ild   
tax cr$it7 by reason ( subsection 7d7   
!re( & ins]t+ section #cf;,c ( !        
,int]nal ,rev5ue ,code ( #aihf 7relat+  
to *ild tax cr$it71 & any paym5t made to
 su* individual 7or su* sp\se7 "u       
section #gebg;,a ( su* ,code 7relat+ to 
advance paym5t ( *ild tax cr$it74  7f7  
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjah4  #d4   
,e>n$ income cr$it expansion = ,pu]to   
,rico  7a7 ,9 g5]al ,subsequ5t to an    
am5dm5t ( ! ,pu]to ,rico ,int]nal       
,rev5ue ,code ( #bjaa exp&+ ! e>n$      
income cr$it add$ by ,act #beg 9 a      
simil> mann] z ! am5dm5ts made by       
section #b ( ?is ,act1 ! ,secret>y ( !  
,treasury %all make annual paym5ts to   
,pu]to ,rico 9 ! am\nt det]m9$ "u       

subsection 7b74 ,su* paym5ts %all be    
made )9 a reasonable p]iod ( "t be=e !  
due date = ! income tax 9 ,pu]to ,rico  
ea* ye>1 & %all be made only if ,pu]to  
,rico provides to ! ,secret>y ( !       
,treasury--  7#a7 an e/imate1 c]tifi$ by
 ! ,f9ancial ,ov]sight & ,managem5t     
,bo>d = ,pu]to ,rico1 ( ! co/ ( su*     
expansion 9 ! fir/ ye>2 &  7#b7 annually
 !reaft]1 a report ( ! actual co/ ( su* 
expansion 9 ! prec$+ ye> & an e/imate1  
c]tifi$ by su* ,bo>d1 ( ! co/ ( su*     
expansion 9 ! ye> ( ! report4  7b7      
,am\nt det]m9$ ,= purposes ( subsection 
7a71 ! am\nt det]m9$ ) respect to any   
ye> is s mu* ( ! e/imat$ co/ 7z report$ 
"u subsection 7a77 ( ! expansion ( !    
e>n$ income cr$it 9 ,pu]to ,rico = su*  
ye> z does n exce$ #bjd1jjj1jjj1 z      
applicable--  7#a7 r$uc$ by ! excess1 if
 any1 (-- 7,a7 ! am\nt ( ! paym5ts made 
to ,pu]to ,rico "u ?is section = !      
prec$+ ye>2 ov]  7,b7 ! actual co/ 7z   
report$ "u subsection 7a77 ( ! expansion
 ( ! e>n$ income cr$it 9 ,pu]to ,rico = 

su* prec$+ ye>2 or  7#b7 increas$ by !  
excess1 if any1 ( ! am\nt describ$ 9    
p>agraph 7#a77;,b7 ov] ! am\nt describ$ 
9 p>agraph 7#a77;,a74  7c7 ,co/ (       
expansion ,= purposes ( ?is section1 !  
co/ ( exp&+ ! e>n$ income cr$it 9 ,pu]to
 ,rico z describ$ 9 subsection 7a7 %all 
include only ! co/ ( ! am5dm5ts made z  
describ$ 9 su* subsection1 & %all n     
include ! co/ ( laws 9 effect z ( ! date
 ( ! enactm5t ( ?is ,act4  7d7 ,report+ 
requirem5ts ,! ,treasury ( ,pu]to ,rico 
%all submit to ! ,secret>y ( ! ,treasury
 an annual report on ! e>n$ income cr$it
 ( ,pu]to ,rico1 includ+ ! numb] (      
b5efici>ies1 av]age b5efits = diff]5t   
h\seholds1 p>ticipation rates = eligible
 populations1 error rates & o!r         
compliance matt]s1 & ! effects ( ! cr$it
 on labor =ce p>ticipation & pov]ty     
r$uction4  7e7 ,outrea* grant ,9        
addition to ! paym5ts "u subsection 7a71
 ! ,secret>y ( ! ,treasury %all make a  
"o-"t grant 9 ! am\nt ( #e1jjj1jjj to   
,pu]to ,rico = ! purpose ( taxpay]      

education ef=ts relat+ to ! e>n$ income 
cr$it1 includ+ education ( paid prep>]s4
  7f7 ,appropriations ,su* sums z are   
necess>y1 n to exce$-- 7#a7 #bji1jjj1jjj
 9 ! fir/ ye> aft] enactm5t ( ! am5dm5t 
describ$ 9 subsection 7a72 &  7#b7      
except z provid$ 9 subsection 7g71      
#bjd1jjj1jjj 9 ea* ye> !reaft] 7z long z
 ,pu]to ,rico ma9ta9s an e>n$ income    
cr$it z describ$ 9 subsection 7a771  are
 h]eby appropriat$ to ! ,secret>y ( !   
,treasury to c>ry out ! purposes ( ?is  
section4  7g7 ,adju/m5t = inflation     
7#a7 ,9 g5]al ,= ea* cal5d> ye> beg9n+  
aft] ! ye> describ$ 9 subsection        
7f77#a71 ! #bjd1jjj1jjj am\nt "u        
subsections 7b7 & 7f77#b7 %all be       
increas$ by an am\nt equal to--  7,a7   
su* doll> am\nt2 multipli$ by  7,b7 !   
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 ( ! ,int]nal ,rev5ue ,code ( 
#aihf1 det]m9$ by sub/itut+ ! cal5d> ye>
 prec$+ ! ye> describ$ 9 subsection     
7f77#a7 = cal5d> ye> #bjaf 9 subp>agraph
 7,a77ii7 !re(4  7#b7 ,r\nd+ ,if any    

am\nt adju/$ "u p>agraph 7#a7 is n a    
multiple ( #ejj1 su* am\nt %all be r\nd$
 to ! next l[e/ multiple ( #ejj4  #e4   
,regulation ( tax return prep>]s  7a7 ,9
 g5]al ,subsection 7a7 ( section #ccj ( 
title #ca1 ,unit$ ,/ates ,code1 is      
am5d$-- 7#a7 by /rik+ p>agraph 7#a7 &   
ins]t+ ! foll[+3  7#a7 regulate-- 7,a7 !
 practice ( repres5tatives ( p]sons be=e
 ! ,dep>tm5t ( ! ,treasury2 &  7,b7 !   
practice ( tax return prep>]s2 &  2 &   
7#b7 9 p>agraph 7#b7--  7,a7 by ins]t+  
or a tax return prep>] to prep>e tax    
returns aft] practice2  7,b7 by ins]t+  
or tax return prep>] be=e demon/rate2 & 
7,c7 by ins]t+ or 9 prep>+ _! tax       
returns1 claims = refund1 or docum5ts 9 
connection ) tax returns or claims =    
refund aft] cases 9 subp>agraph 7,d74   
7b7 ,au?ority ,to sanction regulat$ tax 
return prep>]s ,subsection 7c7 ( section
 #ccj ( title #ca1 ,unit$ ,/ates ,code1 
is am5d$-- 7#a7 by /rik+ be=e !         
,dep>tm5t2  7#b7 by ins]t+ or tax return
 prep>] aft] repres5tative ea* place x  

appe>s2 &  7#c7 9 p>agraph 7#d71 by     
/rik+ misleads or ?reat5s & all t foll[s
 & ins]t+  misleads or ?reat5s-- 7,a7   
any p]son be+ repres5t$ or any          
prospective p]son be+ repres5t$2 or     
7,b7 any p]son or prospective p]son ^:  
tax return1 claim = refund1 or docum5t 9
 connection ) a tax return or claim =   
refund1 is be+ or may be prep>$4  4  7c7
 ,m9imum compet5cy /&>ds = tax return   
prep>]s ,section #ccj ( title #ca1      
,unit$ ,/ates ,code1 is am5d$ by add+ at
 ! end ! foll[+ new subsection3  7f7    
,tax return prep>]s  7#a7 ,9 g5]al ,any 
tax return prep>] %all demon/rate m9imum
 compet5cy /&>ds "u ?is subsection by-- 
7,a7 obta9+ an id5tify+ numb] = secur+  
prop] id5tification ( su* prep>] z      
describ$ 9 section #faji7;a77#d7 ( !    
,int]nal ,rev5ue ,code ( #aihf2  7,b7   
satisfy+ any exam9ation & annual cont9u+
 education requirem5ts z prescrib$ by ! 
,secret>y2 &  7,c7 complet+ a backgr\nd 
*eck adm9i/]$ by ! ,secret>y4  7#b7     
,exemption ,! ,secret>y %all exempt tax 

return prep>]s :o h be5 subject to      
comp>able exam9ation1 cont9u+ education 
requirem5ts1 & backgr\nd *ecks adm9i/]$ 
by ! ,secret>y or any comp>able ,/ate   
lic5s+ program4 ,su* exemption %all     
ext5d directly to individuals :o are    
sup]vis$ by su* prep>]s & are n requir$ 
to secure an id5tification numb] "u     
section #faji7;a77#d74  4  7d7 ,tax     
return prep>] def9$ ,section #ccj (     
title #ca1 ,unit$ ,/ates ,code1 z am5d$ 
by subsection 7c71 is am5d$ by add+ at !
 end ! foll[+ new subsection3  7g7 ,tax 
return prep>] ,= purposes ( ?is         
section-- 7#a7 ,9 g5]al ,! t]m tax      
return prep>] has ! mean+ giv5 su* t]m  
"u section #ggja7;a77#cf7 ( ! ,int]nal  
,rev5ue ,code ( #aihf4  7#b7 ,tax return
 ,! t]m tax return has ! mean+ giv5 to !
 t]m return "u section #ffif7;e77#a7 ( !
 ,int]nal ,rev5ue ,code ( #aihf4  7#c7  
,claim = refund ,! t]m claim = refund   
has ! mean+ giv5 su* t]m "u section     
#ffif7;e77#b7 ( su* ,code4  4  7e7      
,am5dm5ts ) respect to id5tify+ numb]   

7#a7 ,9 g5]al ,section #faji7;a7 is     
am5d$ by /rik+ p>agraph 7#d7 & ins]t+ ! 
foll[+3  7#d7 ,furni%+ id5tify+ numb] ( 
tax return prep>]  7,a7 ,9 g5]al ,any   
return or claim = refund prep>$ by a tax
 return prep>] %all be> su* id5tify+    
numb] = secur+ prop] id5tification ( su*
 prep>]1 8 employ]1 or bo?1 z may be    
prescrib$4 ,= purposes ( ?is p>agraph1 !
 t]ms return & claim = refund h !       
respective mean+s giv5 to su* t]ms by   
section #ffif7;e74  7,b7 ,exception     
,subp>agraph 7,a7 %all n apply to any   
tax return prep>] :o prep>es a return or
 claim = refund "u ! sup]vision &       
direction ( a tax return prep>] :o signs
 ! return or claim = refund & is a      
c]tifi$ public acc\ntant1 an attorney or
 enroll$ ag5t4  4  7#b7 ,cl>ification ( 
rescission au?ority ,section #faji is   
am5d$ by ins]t+ aft] subsection 7d7 !   
foll[+ new subsection3  7e7 ,au?ority   
,to resc9d id5tify+ numb] ( tax return  
prep>]  7#a7 ,9 g5]al ,! ,secret>y may  
resc9d an id5tify+ numb] issu$ "u       

subsection 7a77#d7 if--  7,a7 aft]      
notice & opportunity = a he>+1 ! prep>] 
is %[n to be incompet5t or disreputable 
7z su* t]ms are us$ 9 subsection 7c7 (  
section #ccj ( title #ca1 ,unit$ ,/ates 
,code71 &  7,b7 resc9d+ ! id5tify+ numb]
 w\ld promote compliance ) ! requirem5ts
 ( ?is title & effective tax            
adm9i/ration4  7#b7 ,records ,if an     
id5tify+ numb] is resc9d$ "u p>agraph   
7#a71 ! ,secret>y %all place 9 ! file 9 
! ,(fice ( ! ,director ( ,pr(essional   
,responsibility ! op9ion ( ! ,secret>y )
 respect to ! det]m9ation1 includ+--    
7,a7 a /atem5t ( ! facts & circum/ances 
relat+ to ! det]m9ation1 &  7,b7 !      
reasons = ! rescission4  4  7f7 ,,gao   
/udy & report on ! ex*ange ( in=mation  
betwe5 ! ,,irs & ,/ate taxation         
au?orities  7#a7 ,9 g5]al ,n lat] ?an   
#ah mon?s aft] ! date ( ! enactm5t ( ?is
 ,act1 ! ,comptroll] ,g5]al %all conduct
 a /udy & submit to ,congress a report  
on ! %>+ ( in=mation betwe5 ! ,secret>y 
( ! ,treasury & ,/ate au?orities1 z     

au?oriz$ "u section #fajc7;d7 ( !       
,int]nal ,rev5ue ,code ( #aihf1 reg>d+  
id5tification numb]s issu$ to paid tax  
return prep>]s & return prep>] m9imum   
/&>ds4  7#b7 ,increas$ in=mation %>+ ,! 
/udy & report describ$ 9 p>agraph 7#a7  
%all include an analysis ( ! impact t   
increas$ in=mation %>+ betwe5 ,f$]al &  
,/ate au?orities w\ld h on ef=ts to     
en=ce m9imum /&>ds on paid tax return   
prep>]s4