,,ii #aafth ,,congress #ast ,session ,s4 #aeii ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #bb1 #bjai,mr4 ,kaine 7for himself and ,mr4 ,jones7 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 create a refundable tax credit for foster families1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,foster ,care ,tax ,credit ,act4 #b4 ,foster care tax credit 7a7 ,allowance of credit 7#a7 ,in general ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #cf;,b the following new section3 #cf;,c4 ,foster care tax credit 7a7 ,allowance of credit ,in the case of an eligible taxpayer1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to #hej4 7b7 ,limitation 7#a7 ,in general ,the amount of the credit allowable under subsection 7a7 7determined without regard to this subsection7 shall be reduced 7but not below zero7 by the amount which bears the same ratio to such credit 7as so determined7 as-- 7,a7 the excess of-- 7i7 the taxpayer's modified adjusted gross income for such taxable year1 over 7ii7 the threshold amount1 bears to 7,b7 #ag1jjj4 7#b7 ,threshold amount ,for purposes of paragraph 7#a71 the term threshold amount means-- 7,a7 #bej1jjj1 in the case of a joint return1 7,b7 #aej1jjj1 in the case of an individual who is not married1 and 7,c7 #abe1jjj1 in the case of a married individual filing a separate return4 ,for purposes of this paragraph1 marital status shall be determined under section #ggjc4 7#c7 ,modified adjusted gross income ,for purposes of this subsection1 the term modified adjusted gross income means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section #iaa1 #ica1 or #icc4 7c7 ,eligible taxpayer ,for purposes of this section-- 7#a7 ,in general ,the term eligible taxpayer means1 with respect to any taxable year1 any taxpayer-- 7,a7 with whom a qualifying foster child was placed for a period of not less than #a month during such taxable year1 and 7,b7 for whom a credit under section #bd with respect to such eligible foster child is not allowed for such taxable year4 7#b7 ,qualifying foster child ,the term qualifying foster child means an eligible foster child 7within the meaning of section #aeb7;f77#a77;,c77-- 7,a7 who has not attained age #ag1 and 7,b7 who is a citizen1 national1 or resident of the ,united ,states4 7#c7 ,calendar month ,for purposes of this paragraph 7#a77;,a71 if a foster child resides in the home of the taxpayer for more than #ae consecutive days of a calendar month but fewer than the total number of days in such calendar month1 such foster child shall be treated as residing in the home of the taxpayer for the full calendar month4 7d7 ,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 4 7#b7 ,conforming amendments 7,a7 ,section #fbaa7;b77#d7 of the ,internal ,revenue ,code of #aihf is amended by inserting #cf;,c1 after #cf;,b14 7,b7 ,section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 is amended by inserting #be;,e1 after #be;,a14 7,c7 ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #cf;,b the following new item3 ,sec4 #cf;,c4 ,foster care tax credit4 4 7b7 ,information returns relating to foster child placement 7#a7 ,in general ,subpart ,a of part ,,iii of subchapter ,a of chapter #fa of the ,internal ,revenue ,code of #aihf is amended by inserting after section #fjci;,j the following new section3 #fjci,k4 ,information reporting with respect to foster child placement 7a7 ,in general ,every authorized placement agency and court which places a qualifying foster child with a person during a calendar year shall1 at such time as the ,secretary shall prescribe1 make a return described in subsection 7b74 7b7 ,form and manner of return ,a return is described in this subsection if such return-- 7#a7 is in such form as the ,secretary may prescribe1 and 7#b7 contains1 with respect to each qualifying foster child placed during the calendar year-- 7,a7 the name1 address1 and ,,tin of each individual with whom such qualifying foster child was placed1 7,b7 the name of the qualifying foster child1 and 7,c7 the dates during which such placement occurred4 7c7 ,statements ,to be furnished to foster parents 7#a7 ,in general ,every person required to make a return under subsection 7a7 shall furnish to each individual whose name is required to be set forth under subsection 7b77#b77;,a7 a written statement showing-- 7,a7 the name and address of the person required to make such return and the phone number of the information contact for such person1 and 7,b7 the information required to be shown on the return with respect to such individual4 7#b7 ,time for furnishing statements ,the written statement required under paragraph 7#a7 shall be furnished on or before ,january #ca of the year following the calendar year for which the return under subsection 7a7 was required to be made4 7d7 ,qualifying foster child ,for purposes of this section1 the term qualifying foster child has the meaning given such term under section #cf;,c7c77#b74 4 7#b7 ,assessable penalties 7,a7 ,section #fgbd7;d77#a77;,b7 of such ,code is amended by striking or at the end of clause 7xxv71 by striking and at the end of clause 7xxvi7 and inserting or1 and by inserting after clause 7xxvi7 the following new clause3 7xxvii7 section #fjci,k 7relating to information returns with respect to foster child placement71 4 7,b7 ,section #fgbd7;d77#b7 of such ,code is amended by redesignating the second subparagraph 7,,jj7 as subparagraph 7,,kk71 by striking or at the end of subparagraph 7,,ii71 by striking the period at the end of the first subparagraph 7,,jj71 by striking the period at the end of subparagraph 7,,kk7 7as so redesignated7 and inserting a comma1 and by inserting after such subparagraph 7,,kk7 the following new subparagraph3 7,,ll7 section #fjci,k7c7 7relating to statements with respect to foster child placement74 4 7#c7 ,clerical amendment ,the table of sections of subpart ,a of part ,,iii of subchapter ,a of chapter #fa of such ,code is amended by inserting after the item relating to section #fjci;,j the following new item3 ,sec4 #fjci,k4 ,information reporting with respect to foster child placement4 4 7c7 ,election not ,to take child tax credit ,section #bd7;h77#d7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,d7 ,election not to take credit ,a taxpayer may elect not to have this paragraph apply with respect to any dependent of the taxpayer to whom a credit would otherwise be allowed by reason of subparagraph 7,a74 ,in any case in which a taxpayer makes an election under this subparagraph1 the credit allowed under this section shall be treated as not allowed with respect to such dependent4 4 7d7 ,application of tax return preparer due diligence penalty ,section #ffie7;g7 of the ,internal ,revenue ,code of #aihf is amended by striking or #cb and inserting #cb1 or #cf;,c4 7e7 ,effective date ,the amendments made by this section shall apply to calendar months beginning after ,december #ca1 #bjai1 in taxable years beginning after such date4 7f7 ,education 7#a7 ,in general ,the ,secretary of ,health and ,human ,services 7or the ,secretary's delegate71 in coordination with the ,secretary of the ,treasury or such ,secretary's delegate1 shall identify provisions in the ,internal ,revenue ,code of #aihf that can be used by or can benefit foster families1 and shall increase outreach efforts to provide information and educational materials regarding such provisions to ,state and ,indian tribal foster care agencies and to foster families4 7#b7 ,authorization of appropriations ,there are authorized to be appropriated such sums as necessary for the purposes of carrying out paragraph 7#a74 #c4 ,study and report on emergency and short-term foster placements 7a7 ,study ,the ,secretary of ,health and ,human services1 in coordination with the ,secretary of the ,treasury 7or the ,secretary's delegate71 shall conduct a study on-- 7#a7 the costs and financial burdens on foster families who experience multiple emergency and short-term foster placements annually2 and 7#b7 challenges to verifying and documenting the placement of children in emergency and short-term placement4 ,for purposes of this subsection1 a short-term placement is a placement that lasts less than #a week4 7b7 ,report ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of ,health and ,human ,services shall submit to ,congress a report on the study conducted under subsection 7a74