,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bigf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,decemb] #d1 #bjai,mr4 
,cassidy 7= himself1 ,ms4 ,s9ema1 ,mr4  
,da9es1 ,mrs4 ,capito1 & ,mr4 ,man*97   
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide an     
election to advance future *ild tax     
cr$its 9 ! ye> ( bir? or adoption4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,advanc+ ,support = ,work+ ,families    
,act4  #b4 ,election to advance *ild tax
 cr$it  7a7 ,9 g5]al ,section #bd ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new           
subsection3  7i7 ,election = advanc$    
cr$it 9 ye> ( bir? or adoption  7#a7 ,9 
g5]al ,9 ! case ( a taxpay] :o makes an 
election "u ?is subsection ) respect to 
any applicable qualify+ *ild--  7,a7 !  
am\nt ( ! cr$it all[$ "u subsection 7a7 
) respect to su* applicable qualify+    
*ild = ! taxable ye> 9 :i* su*          

applicable qualify+ *ild is born or     
adopt$ %all be increas$ by ! applicable 
am\nt1 &  7,b7 ! am\nt det]m9$ "u       
subsection 7d7 %all be increas$ by !    
am\nt ( cr$it all[$ to ! taxpay] "u ?is 
section by reason ( subp>agraph 7,a74   
,no election may be made "u ?is         
subsection ) respect to an applicable   
qualify+ *ild unless ! applicable       
qualify+ *ild is alive at ! "t !        
election is made4  7#b7 ,(fsett+        
r$uction  7,a7 ,9 g5]al ,except z       
o!rwise provid$ 9 ?is p>agraph1 if !    
am\nt ( ! cr$it all[$ to ! taxpay] "u   
subsection 7a7 is increas$ "u p>agraph  
7#a71 ! tax impos$ by ?is *apt] %all be 
increas$ by ! applicable fraction ( su* 
increase = ea* taxable ye> 9 ! (fset    
p]iod4  7,b7 ,applicable fraction ,=    
purposes ( ?is p>agraph1 ! t]m          
applicable fraction means a fraction--  
7i7 ! num]ator ( :i* is "o1 &  7ii7 !   
d5om9ator ( :i* is ! total numb] ( ye>s 
9 ! (fset p]iod4  7,c7 ,exceptions  7i7 
,dea? ,subp>agraph 7,a7 %all n apply to 

any taxable ye> end+ aft] ! date ( !    
dea? (--  7,i7 ! taxpay]1 or  7,,ii7 !  
applicable qualify+ *ild ) respect to ! 
increase4  7ii7 ,def]m5t  7,i7 ,9 g5]al 
,9 ! case ( any taxpay] describ$ 9      
subclause 7,,ii7 = ! taxable ye>1 no tax
 %all be impos$ "u subp>agraph 7,a7 =   
su* taxable ye> & ! numb] ( taxable ye>s
 9 ! (fset p]iod %all be increas$ 7o!r  
?an = purposes ( subp>agraph 7,b77ii77  
by #a ye>4  7,,ii7 ,taxpay] describ$ ,a 
taxpay] is describ$ 9 ?is subclause =   
any taxable ye> if ! e>n$ income am\nt (
 ! taxpay] = su* taxable ye> is m ?an   
#bj p]c5t less ?an ! e>n$ income am\nt (
 ! taxpay] = ! prec$+ taxable ye> & !   
taxpay] makes an election "u ?is clause4
 ,! ,secret>y %all promulgate rules =   
calculat+ diff]5ces 9 ! e>n$ income     
am\nt ( any taxpay] ^: fil+ /atus is n !
 same z su* taxpay]'s fil+ /atus 9 !    
prec$+ taxable ye>4  7,,iii7 ,election  
,an election made "u ?is clause %all    
apply to all applicable qualify+ *ildr5 
( ! taxpay] ) respect to :om an increase

 is all[$ "u ?is subsection & may n be  
made ) respect to m ?an #c taxable ye>s 
9 any (fset p]iod4  7,d7 ,jo9t returns  
,9 ! case ( an increase 9 cr$it all[$ "u
 p>agraph 7#a7 ) respect to a jo9t      
return1 half ( su* increase %all be     
treat$ z hav+ be5 all[$ to ea*          
individual fil+ su* return = purposes ( 
?is p>agraph4  7,e7 ,return requirem5t  
,if ! tax impos$ by ?is *apt] = !       
taxable ye> is increas$ "u ?is p>agraph1
 ! taxpay] %all1 not)/&+ section #fjab1 
be requir$ to file a return ) respect to
 ! taxes impos$ "u ?is subtitle4  7,f7  
,(fset p]iod  7i7 ,9 g5]al ,except z    
provid$ 9 subp>agraph 7,c77ii71 ! t]m   
(fset p]iod means1 ) respect to any     
increase "u ?is p>agraph1 ! #aj taxable 
ye>s beg9n+ ) ! taxable ye> 9 :i* !     
applicable qualify+ *ild is born or     
adopt$4  7ii7 ,special rule ,9 ! case ( 
a qualify+ *ild :o is adopt$ by !       
taxpay] & :o is ov] ! age ( #e on ! date
 ! adoption becomes f9al1 ! numb] (     
taxable ye>s 9 ! (fset p]iod %all be    

r$uc$ by #a ye> = ea* ye> by :i* ! age  
atta9$ by ! qualify+ *ild on ! date !   
adoption becomes f9al is ov] ! age ( #e4
  7#c7 ,election to claim cr$it on prior
 ye> return ,9 ! case ( an applicable   
qualify+ *ild born or adopt$ aft] ! date
 t is #abj days aft] ! date ( ! enactm5t
 ( ?is subsection1 a taxpay] may elect  
to treat su* *ild z born or adopt$ on   
,decemb] #ca ( ! cal5d> ye> prec$+ su*  
bir? or adoption = purposes ( ?is       
section4  7#d7 ,def9itions ,= purposes (
 ?is subsection-- 7,a7 ,applicable      
qualify+ *ild ,! t]m applicable qualify+
 *ild means any qualify+ *ild o!r ?an an
 eligible fo/] *ild 7z def9$ 9 section  
#aeb7;f77#a77;,c774  7,b7 ,applicable   
am\nt  7i7 ,9 g5]al ,! applicable am\nt 
is ! am\nt1 n to exce$ ! maximum cr$it  
am\nt1 elect$ by ! taxpay]4  7ii7       
,maximum cr$it am\nt  7,i7 ,9 g5]al ,!  
maximum cr$it am\nt is #e1jjj4  7,,ii7  
,special rule = c]ta9 adopt$ *ildr5 ,9 !
 case ( a qualify+ *ild :o is adopt$ by 
! taxpay] & :o is ov] ! age ( #e on !   

date ! adoption becomes f9al1 ! maximum 
cr$it am\nt %all be r$uc$ by #ejj = ea* 
ye> by :i* ! age atta9$ by ! qualify+   
*ild on ! date ! adoption becomes f9al  
is ov] ! age ( #e4  7,c7 ,e>n$ income   
am\nt ,! t]m e>n$ income am\nt means !  
am\nt ( e>n$ income 7)9 ! mean+ (       
section #cb7 :i* is tak5 into acc\nt 9  
comput+ taxable income = ! taxable ye>4 
,= purposes ( ! prec$+ s5t5ce1 any am\nt
 exclud$ f gross income by reason (     
section #aab %all be treat$ z e>n$      
income :i* is tak5 into acc\nt 9 comput+
 taxable income = ! taxable ye>4  7#e7  
,special rule = c]ta9 l[-income         
individuals  7,a7 ,9 g5]al ,9 ! case ( a
 taxpay] describ$ 9 subp>agraph 7,b7--  
7i7 ! applicable am\nt %all n exce$ !   
less] (--  7,i7 ! maximum cr$it am\nt1  
or  7,,ii7 ! applicable p]c5tage ( !    
e>n$ income am\nt ( ! taxpay] = !       
taxable ye>1 &  7ii7 p>agraph 7#b77;,f7 
%all be appli$-- 7,i7 by sub/itut+ #ae  
taxable ye>s = #aj taxable ye>s 9 clause
 7i7 !re(1 &  7,,ii7 by sub/itut+ age ( 

#j = age ( #e ea* place x appe>s 9      
clause 7ii74  7,b7 ,taxpay] describ$ ,a 
taxpay] is describ$ 9 ?is subp>agraph if
 ! increase 9 cr$its all[$ "u subp>t ,c 
= ! taxable ye> by reason ( subsection  
7d77#a7 7det]m9$ )\t reg>d to p>agraph  
7#a77;,b77 is less ?an ! am\nt t w\ld be
 s det]m9$ if subsection 7d77#a7 7      
appli$ )\t reg>d to subp>agraph 7,b7    
!re(4  7,c7 ,applicable p]c5tage ,=     
purposes ( subp>agraph 7,a7-- 7i7 ,9    
g5]al ,! applicable p]c5tage is #be     
p]c5t4  7ii7 ,special rule = c]ta9      
adopt$ *ildr5 ,9 ! case ( a qualify+    
*ild :o is adopt$ by ! taxpay] & :o is  
ov] ! age ( #e on ! date ! adoption     
becomes f9al1 ! applicable p]c5tage %all
 be r$uc$ by #b4e p]c5tage po9ts = ea*  
ye> by :i* ! age atta9$ by ! qualify+   
*ild on ! date ! adoption becomes f9al  
is ov] ! age ( #e4  7#f7 ,special rule =
 ye> ( bir? or adoption  7,a7 ,9 g5]al  
,9 ! case ( a qualify+ *ild :o is born  
or adopt$ dur+ ! taxable ye> & ) respect
 to :om an election is made "u ?is      

subsection--  7i7 subsection 7h77#g7    
%all n apply1 &  7ii7 no cr$it %all be  
all[$ "u ?is section ) respect to su*   
qualify+ *ild unless ! taxpay] includes 
"o ( ! foll[+3  7,i7 ,9 ! case ( a      
qualify+ *ild :o is adopt$1 ! adoption  
taxpay] id5tification numb] ( su* *ild4 
7,,ii7 ,a social security numb] 7)9 !   
mean+ ( subsection 7h77#g77 ( su* *ild4 
7,,iii7 ,su* docum5tation z det]m9$ by !
 ,secret>y z appropriate to e/abli% t ! 
qualify+ *ild qualifies = a social      
security numb] 7)9 ! mean+ ( subsection 
7h77#g774  7,b7 ,accel]ation  7i7 ,9    
g5]al ,9 any case 9 :i* a taxpay] does n
 include a social security numb] 7)9 !  
mean+ ( subsection 7h77#g77 ( a qualify+
 *ild ) respect to :om an election is   
made "u ?is subsection on ! return ( tax
 = ! taxable ye> ( bir? or adoption--   
7,i7 ! tax impos$ by ?is *apt] = !      
taxable ye> succe$+ ! taxable ye> 9 :i* 
! bir? or adoption ( ! qualify+ *ild    
occurs %all be increas$ by ! excess ( ! 
am\nt ( ! increase 9 cr$it "u p>agraph  

7#a7 ov] ! am\nts ( tax impos$ by       
p>agraph 7#b7 = ! prec$+ taxable ye>1 & 
7,,ii7 p>agraph 7#b7 %all n apply )     
respect to su* increase = su* taxable   
ye> or any subsequ5t taxable ye>4  ,=   
purposes ( ?is title1 any increase 9 tax
 "u ?is subp>agraph %all be treat$ 9 !  
same mann] z an increase 9 tax "u       
p>agraph 7#b74  7ii7 ,exception if      
social security numb] provid$ ,clause   
7i7 %all n apply if ! taxpay] includes  
on ! return ( tax = ! taxable ye>       
succe$+ ! taxable ye> 9 :i* ! bir? or   
adoption ( ! qualify+ *ild occurs !     
social security numb] 7)9 ! mean+ (     
subsection 7h77#g77 ( su* qualify+ *ild4
  7#g7 ,adm9i/ration & regulations ,!   
,secret>y %all take su* /eps z necess>y1
 includ+ ?r\gh regulations & o!r        
guidance1 9 ord] to--  7,a7 enable &    
enc\rage taxpay]s to claim an increas$  
cr$it "u ?is subsection z soon z        
practical aft] ! bir? or adoption ( a   
*ild1 includ+ ?r\gh a process available 
on ! ,int]net1  7,b7 exp$ite ! process+ 

( refunds 9 connection ) an election to 
claim ! increas$ cr$it on a prior ye>   
return "u p>agraph 7#c71  7,c7 prev5t   
fraud & abuse ( ! increas$ cr$it1       
includ+1 if necess>y1 ?r\gh ! submission
 ( additional ?ird-p>ty in=mation relat$
 to ! bir? or adoption ( a *ild )       
respect to :om an increas$ cr$it is     
claim$ "u ?is subsection1 &  7,d7       
provide annual in=mation to elect+      
taxpay]s relat+ to out/&+ liability )   
respect to (fsett+ r$uctions "u p>agraph
 7#b74  4  7b7 ,cr$its n all[$ aga9/    
(fset ,section #bf7;b77#b7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
& at ! end ( subp>agraph 7,x71 by /rik+ 
! p]iod at ! end ( subp>agraph 7,y7 &   
ins]t+ 1 &1 & by add+ at ! end ! foll[+ 
new subp>agraph3  7,z7 section          
#bd7;i77#b7 7relat+ to (fset ( advanc$  
*ild tax cr$it 9 ye> ( bir? or          
adoption74  4  7c7 ,ma? error au?ority  
,section #fbac7;g77#b7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
& at ! end ( subp>agraph 7,p71 by /rik+ 

! p]iod at ! end ( subp>agraph 7,q7 &   
ins]t+ 1 &1 & by ins]t+ aft] subp>agraph
 7,q7 ! foll[+ new subp>agraph3  7,r7 9 
! case ( a taxpay] to :om section       
#bd7;i77#b7 applies1 an omission (      
correct in=mation relat+ to ! am\nt (   
any increase all[$ "u section #bd7;i71 !
 applicable fraction 7z def9$ 9 su*     
section7 ( su* increase1 or !           
det]m9ation ( :e!r ! taxpay] is describ$
 9 section #bd7;i77#b77;,c77ii77,,ii74  
4  7d7 ,effective date  7#a7 ,9 g5]al   
,except z provid$ 9 p>agraph 7#b71 !    
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjai4  7#b7 ,special rule =       
election to claim cr$it on prior ye>    
return ,9 ! case ( a taxpay] :o makes an
 election "u section #bd7;i77#c7 7z add$
 by subsection 7a77 ) respect to a *ild 
born be=e ,janu>y #a1 #bjba 7det]m9$ )\t
 reg>d to su* section71 ! am5dm5ts made 
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjah4   
7e7 ,,gao ,/udy  7#a7 ,9 g5]al ,n lat]  

?an #b ye>s aft] ! date ( enactm5t ( ?is
 ,act1 ! ,comptroll] ,g5]al ( ! ,unit$  
,/ates %all submit to ,congress a report
 on taxpay]s mak+ an election "u section
 #bd7;i7 ( ! ,int]nal ,rev5ue ,code (   
#aihf1 z add$ by subsection 7a74  7#b7  
,matt]s includ$ ,! report submitt$ "u   
p>agraph 7#a7 %all include ! foll[+3    
7,a7 ,! total numb] ( taxpay]s mak+ su* 
election = ea* mon? dur+ #bjai1 & !     
av]age numb] ( days occurr+ dur+ ! p]iod
 beg9n+ on ! date on :i* su* election is
 made & end+ on ! date on :i* !         
,secret>y ( ! ,treasury 7or !           
,secret>y's designee7 makes a           
det]m9ation t an increase "u su* section
 is all[$4  7,b7 ,! total numb] (       
taxpay]s receiv+ an increas$ cr$it "u   
su* section dur+ #bjai1 & ! av]age numb]
 ( days occurr+ dur+ ! p]iod beg9n+ on !
 date on :i* su* election is made & end+
 on ! date on :i* any refund relat$ to  
su* increase is paid4  7,c7 ,an         
id5tification ( any excessive delay 9   
any ( ! p]iods describ$ 9 subp>agraphs  

7,a7 & 7,b71 & a description ( ! causes 
= su* delay1 ) recomm5dations to address
 ^? excessive delays4  7,d7 ,! total    
numb] ( taxpay]s mak+ su* election :o   
fail$ to submit a social security numb] 
( ! qualify+ *ild or su* o!r in=mation  
requir$ pursuant to section             
#bd7;i77#f77;,a7 ( ! ,int]nal ,rev5ue   
,code ( #aihf 7z add$ by subsection     
7a771 & a description ( ! b>ri]s prev5t+
 taxpay]s f meet+ su* requirem5ts1 )    
recomm5dations on h[ to increase taxpay]
 compliance & address delays caus$ by   
o!r /ate & ,f$]al ag5cies4  7,e7 ,!     
total numb] ( elections = def]m5t "u    
section #bd7;i77#b77;,c77ii7 ( su* ,code
 7z add$ by subsection 7a77 & ! numb] ( 
su* elections p]mitt$4  7,f7 ,! total   
numb] ( taxpay]s n requir$ to make      
(fsett+ increases 9 tax "u section      
#bd7;i77#b77;,a7 ( su* ,code 7z add$ by 
subsection 7a77 due to ! dea? ( !       
applicable qualify+ *ild or ! taxpay] & 
! rev5ue impact ( su* exceptions4  7,g7 
,a li/ ( regulatory & legislative       

options1 det]m9$ 9 consultation ) family
 & m$ical leave exp]ts1 on ! feasibility
 ( exp&+ ,f$]al tax b5efits1 includ+    
?r\gh int]action ) programs adm9i/]$ by 
,/ates1 insurance companies1 & employ]s1
 to support taxpay]s :o take diff]5t    
types ( leave to :i* ! ,family & ,m$ical
 ,leave ,act ( #aiic 7#bi ,u4,s4,c4     
#bfja et seq47 applies4