,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #aeii  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bb1 #bjai,mr4    
,ka9e 7= himself & ,mr4 ,jones7         
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to create a       
refundable tax cr$it = fo/] families1 & 
= o!r purposes4  #a4 ,%ort title ,?is   
,act may be cit$ z ! ,fo/] ,c>e ,tax    
,cr$it ,act4  #b4 ,fo/] c>e tax cr$it   
7a7 ,all[ance ( cr$it  7#a7 ,9 g5]al    
,subp>t ,c ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] section   
#cf;,b ! foll[+ new section3  #cf;,c4   
,fo/] c>e tax cr$it  7a7 ,all[ance (    
cr$it ,9 ! case ( an eligible taxpay]1  
!re %all be all[$ z a cr$it aga9/ ! tax 
impos$ by ?is *apt] = ! taxable ye> an  
am\nt equal to #hej4  7b7 ,limitation   
7#a7 ,9 g5]al ,! am\nt ( ! cr$it        
all[able "u subsection 7a7 7det]m9$ )\t 
reg>d to ?is subsection7 %all be r$uc$  

7b n bel[ z]o7 by ! am\nt :i* be>s !    
same ratio to su* cr$it 7z s det]m9$7   
z--  7,a7 ! excess (-- 7i7 ! taxpay]'s  
modifi$ adju/$ gross income = su*       
taxable ye>1 ov]  7ii7 ! ?re%old am\nt1 
be>s to  7,b7 #ag1jjj4  7#b7 ,?re%old   
am\nt ,= purposes ( p>agraph 7#a71 ! t]m
 ?re%old am\nt means-- 7,a7 #bej1jjj1 9 
! case ( a jo9t return1  7,b7 #aej1jjj1 
9 ! case ( an individual :o is n m>ri$1 
&  7,c7 #abe1jjj1 9 ! case ( a m>ri$    
individual fil+ a sep>ate return4  ,=   
purposes ( ?is p>agraph1 m>ital /atus   
%all be det]m9$ "u section #ggjc4  7#c7 
,modifi$ adju/$ gross income ,= purposes
 ( ?is subsection1 ! t]m modifi$ adju/$ 
gross income means ! adju/$ gross income
 ( ! taxpay] = ! taxable ye> increas$ by
 any am\nt exclud$ f gross income "u    
section #iaa1 #ica1 or #icc4  7c7       
,eligible taxpay] ,= purposes ( ?is     
section-- 7#a7 ,9 g5]al ,! t]m eligible 
taxpay] means1 ) respect to any taxable 
ye>1 any taxpay]--  7,a7 ) :om a        
qualify+ fo/] *ild 0 plac$ = a p]iod ( n

 less ?an #a mon? dur+ su* taxable ye>1 
&  7,b7 = :om a cr$it "u section #bd )  
respect to su* eligible fo/] *ild is n  
all[$ = su* taxable ye>4  7#b7 ,qualify+
 fo/] *ild ,! t]m qualify+ fo/] *ild    
means an eligible fo/] *ild 7)9 ! mean+ 
( section #aeb7;f77#a77;,c77-- 7,a7 :o  
has n atta9$ age #ag1 &  7,b7 :o is a   
citiz51 national1 or resid5t ( ! ,unit$ 
,/ates4  7#c7 ,cal5d> mon? ,= purposes (
 ?is p>agraph 7#a77;,a71 if a fo/] *ild 
resides 9 ! home ( ! taxpay] = m ?an #ae
 consecutive days ( a cal5d> mon? b few]
 ?an ! total numb] ( days 9 su* cal5d>  
mon?1 su* fo/] *ild %all be treat$ z    
resid+ 9 ! home ( ! taxpay] = ! full    
cal5d> mon?4  7d7 ,re/rictions on       
,taxpay]s ,:o ,improp]ly ,claim$ ,cr$it 
9 ,prior ,ye>  7#a7 ,taxpay]s mak+ prior
 fraudul5t or reckless claims  7,a7 ,9  
g5]al ,no cr$it %all be all[$ "u ?is    
section = any taxable ye> 9 !           
disall[ance p]iod4  7,b7 ,disall[ance   
p]iod ,= purposes ( subp>agraph 7,a71 ! 
disall[ance p]iod is--  7i7 ! p]iod (   

#aj taxable ye>s aft] ! mo/ rec5t       
taxable ye> = :i* !re 0 a f9al          
det]m9ation t ! taxpay]'s claim ( cr$it 
"u ?is section 0 due to fraud1 &  7ii7 !
 p]iod ( #b taxable ye>s aft] ! mo/     
rec5t taxable ye> = :i* !re 0 a f9al    
det]m9ation t ! taxpay]'s claim ( cr$it 
"u ?is section 0 due to reckless or     
int5tional disreg>d ( rules &           
regulations 7b n due to fraud74  7#b7   
,taxpay]s mak+ improp] prior claims ,9 !
 case ( a taxpay] :o is d5i$ cr$it "u   
?is section = any taxable ye> z a result
 ( ! defici5cy proc$ures "u sub*apt] ,b 
( *apt] #fc1 no cr$it %all be all[$ "u  
?is section = any subsequ5t taxable ye> 
unless ! taxpay] provides su* in=mation 
z ! ,secret>y may require to demon/rate 
eligibility = su* cr$it4  4  7#b7       
,con=m+ am5dm5ts  7,a7 ,section         
#fbaa7;b77#d7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by ins]t+ #cf;,c1 aft]
 #cf;,b14  7,b7 ,section #acbd7;b77#b7 (
 title #ca1 ,unit$ ,/ates ,code1 is     
am5d$ by ins]t+ #be;,e1 aft] #be;,a14   

7,c7 ,! table ( sections = subp>t ,c (  
"p ,,iv ( sub*apt] ,a ( *apt] #a ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#cf;,b ! foll[+ new item3  ,sec4 #cf;,c4
 ,fo/] c>e tax cr$it4  4  7b7 ,in=mation
 returns relat+ to fo/] *ild placem5t   
7#a7 ,9 g5]al ,subp>t ,a ( "p ,,iii (   
sub*apt] ,a ( *apt] #fa ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #fjci;,j ! foll[+ new     
section3  #fjci,k4 ,in=mation report+ ) 
respect to fo/] *ild placem5t  7a7 ,9   
g5]al ,e au?oriz$ placem5t ag5cy & c\rt 
:i* places a qualify+ fo/] *ild ) a     
p]son dur+ a cal5d> ye> %all1 at su* "t 
z ! ,secret>y %all prescribe1 make a    
return describ$ 9 subsection 7b74  7b7  
,=m & mann] ( return ,a return is       
describ$ 9 ?is subsection if su*        
return-- 7#a7 is 9 su* =m z ! ,secret>y 
may prescribe1 &  7#b7 conta9s1 )       
respect to ea* qualify+ fo/] *ild plac$ 
dur+ ! cal5d> ye>-- 7,a7 ! "n1 address1 
& ,,t9 ( ea* individual ) :om su*       

qualify+ fo/] *ild 0 plac$1  7,b7 ! "n (
 ! qualify+ fo/] *ild1 &  7,c7 ! dates  
dur+ :i* su* placem5t occurr$4  7c7     
,/atem5ts ,to be furni%$ to fo/] p>5ts  
7#a7 ,9 g5]al ,e p]son requir$ to make a
 return "u subsection 7a7 %all furni% to
 ea* individual ^: "n is requir$ to be  
set =? "u subsection 7b77#b77;,a7 a     
writt5 /atem5t %[+--  7,a7 ! "n &       
address ( ! p]son requir$ to make su*   
return & ! phone numb] ( ! in=mation    
contact = su* p]son1 &  7,b7 ! in=mation
 requir$ to be %[n on ! return ) respect
 to su* individual4  7#b7 ,"t = furni%+ 
/atem5ts ,! writt5 /atem5t requir$ "u   
p>agraph 7#a7 %all be furni%$ on or be=e
 ,janu>y #ca ( ! ye> foll[+ ! cal5d> ye>
 = :i* ! return "u subsection 7a7 0     
requir$ to be made4  7d7 ,qualify+ fo/] 
*ild ,= purposes ( ?is section1 ! t]m   
qualify+ fo/] *ild has ! mean+ giv5 su* 
t]m "u section #cf;,c7c77#b74  4  7#b7  
,assessable p5alties  7,a7 ,section     
#fgbd7;d77#a77;,b7 ( su* ,code is am5d$ 
by /rik+ or at ! end ( clause 7xxv71 by 

/rik+ & at ! end ( clause 7xxvi7 &      
ins]t+ or1 & by ins]t+ aft] clause      
7xxvi7 ! foll[+ new clause3  7xxvii7    
section #fjci,k 7relat+ to in=mation    
returns ) respect to fo/] *ild          
placem5t71  4  7,b7 ,section            
#fgbd7;d77#b7 ( su* ,code is am5d$ by   
r$esignat+ ! second subp>agraph 7,,jj7 z
 subp>agraph 7,,kk71 by /rik+ or at !   
end ( subp>agraph 7,,ii71 by /rik+ !    
p]iod at ! end ( ! fir/ subp>agraph     
7,,jj71 by /rik+ ! p]iod at ! end (     
subp>agraph 7,,kk7 7z s r$esignat$7 &   
ins]t+ a comma1 & by ins]t+ aft] su*    
subp>agraph 7,,kk7 ! foll[+ new         
subp>agraph3  7,,ll7 section #fjci,k7c7 
7relat+ to /atem5ts ) respect to fo/]   
*ild placem5t74  4  7#c7 ,cl]ical       
am5dm5t ,! table ( sections ( subp>t ,a 
( "p ,,iii ( sub*apt] ,a ( *apt] #fa (  
su* ,code is am5d$ by ins]t+ aft] ! item
 relat+ to section #fjci;,j ! foll[+ new
 item3  ,sec4 #fjci,k4 ,in=mation       
report+ ) respect to fo/] *ild placem5t4
  4  7c7 ,election n ,to take *ild tax  

cr$it ,section #bd7;h77#d7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subp>agraph3  7,d7
 ,election n to take cr$it ,a taxpay]   
may elect n to h ?is p>agraph apply )   
respect to any dep5d5t ( ! taxpay] to   
:om a cr$it w\ld o!rwise be all[$ by    
reason ( subp>agraph 7,a74 ,9 any case 9
 :i* a taxpay] makes an election "u ?is 
subp>agraph1 ! cr$it all[$ "u ?is       
section %all be treat$ z n all[$ )      
respect to su* dep5d5t4  4  7d7         
,application ( tax return prep>] due    
dilig5ce p5alty ,section #ffie7;g7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ or #cb & ins]t+ #cb1 or #cf;,c4
  7e7 ,effective date ,! am5dm5ts made  
by ?is section %all apply to cal5d>     
mon?s beg9n+ aft] ,decemb] #ca1 #bjai1 9
 taxable ye>s beg9n+ aft] su* date4  7f7
 ,education  7#a7 ,9 g5]al ,! ,secret>y 
( ,heal? & ,human ,s]vices 7or !        
,secret>y's delegate71 9 coord9ation ) !
 ,secret>y ( ! ,treasury or su*         
,secret>y's delegate1 %all id5tify      

provisions 9 ! ,int]nal ,rev5ue ,code ( 
#aihf t c be us$ by or c b5efit fo/]    
families1 & %all increase outrea* ef=ts 
to provide in=mation & educational      
mat]ials reg>d+ su* provisions to ,/ate 
& ,indian tribal fo/] c>e ag5cies & to  
fo/] families4  7#b7 ,au?orization (    
appropriations ,!re are au?oriz$ to be  
appropriat$ su* sums z necess>y = !     
purposes ( c>ry+ out p>agraph 7#a74  #c4
 ,/udy & report on em]g5cy & %ort-t]m   
fo/] placem5ts  7a7 ,/udy ,! ,secret>y (
 ,heal? & ,human s]vices1 9 coord9ation 
) ! ,secret>y ( ! ,treasury 7or !       
,secret>y's delegate71 %all conduct a   
/udy on--  7#a7 ! co/s & f9ancial burd5s
 on fo/] families :o exp]i5ce multiple  
em]g5cy & %ort-t]m fo/] placem5ts       
annually2 &  7#b7 *all5ges to v]ify+ &  
docum5t+ ! placem5t ( *ildr5 9 em]g5cy &
 %ort-t]m placem5t4  ,= purposes ( ?is  
subsection1 a %ort-t]m placem5t is a    
placem5t t la/s less ?an #a week4  7b7  
,report ,n lat] ?an #a ye> aft] ! date (
 ! enactm5t ( ?is ,act1 ! ,secret>y (   

,heal? & ,human ,s]vices %all submit to 
,congress a report on ! /udy conduct$ "u
 subsection 7a74