,,ii #aafth ,,congress #ast ,session ,s4 #fij ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #f1 #bjai,mr4 ,bennet 7for himself1 ,mr4 ,brown1 ,ms4 ,baldwin1 ,mr4 ,blumenthal1 ,mr4 ,booker1 ,mr4 ,cardin1 ,mr4 ,casey1 ,mr4 ,coons1 ,ms4 ,cortez ,masto1 ,ms4 ,duckworth1 ,mr4 ,durbin1 ,mrs4 ,gillibrand1 ,ms4 ,harris1 ,ms4 ,hassan1 ,mr4 ,heinrich1 ,ms4 ,hirono1 ,mr4 ,jones1 ,ms4 ,klobuchar1 ,mr4 ,leahy1 ,mr4 ,markey1 ,mr4 ,menendez1 ,mr4 ,merkley1 ,mr4 ,murphy1 ,mrs4 ,murray1 ,mr4 ,peters1 ,mr4 ,reed1 ,mr4 ,sanders1 ,mr4 ,schatz1 ,mr4 ,schumer1 ,mrs4 ,shaheen1 ,ms4 ,smith1 ,ms4 ,stabenow1 ,mr4 ,tester1 ,mr4 ,van ,hollen1 ,ms4 ,warren1 ,mr4 ,whitehouse1 and ,mr4 ,wyden7 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 make the child tax credit fully refundable1 establish an increased child tax credit for young children1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,american ,family ,act of #bjai4 #b4 ,establishment of fully refundable child tax credit 7a7 ,elimination of existing child tax credit ,subpart ,a of part ,,iv of subchapter ,a of chapter #a of subtitle ,a of the ,internal ,revenue ,code of #aihf is amended by striking section #bd4 7b7 ,establishment of fully refundable child tax credit ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of subtitle ,a of such ,code is amended by inserting after section #cf;,b the following new section3 #cf;,c4 ,child tax credit 7a7 ,allowance of credit ,there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of-- 7#a7 with respect to each qualifying child of the taxpayer who has attained #f years of age before the close of such taxable year and for which the taxpayer is allowed a deduction under section #aea1 an amount equal to #c1jjj1 and 7#b7 with respect to each qualifying child of the taxpayer who has not attained #f years of age before the close of such taxable year and for which the taxpayer is allowed a deduction under section #aea1 an amount equal to #abj percent of the dollar amount in paragraph 7#a74 7b7 ,limitation 7#a7 ,in general ,the amount of the credit allowable under subsection 7a7 shall be reduced 7but not below zero7 by the applicable amount for each #a1jjj 7or fraction thereof7 by which the taxpayer's modified adjusted gross income exceeds the threshold amount4 ,for purposes of the preceding sentence1 the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section #iaa1 #ica1 or #icc4 7#b7 ,threshold amount 7,a7 ,in general ,for purposes of paragraph 7#a71 the term threshold amount means-- 7i7 #ahj1jjj in the case of a joint return1 7ii7 #acj1jjj in the case of an individual who is not married1 and 7iii7 #ij1jjj in the case of a married individual filing a separate return4 7,b7 ,marital status ,for purposes of this paragraph1 marital status shall be determined under section #ggjc4 7#c7 ,applicable amount ,for purposes of paragraph 7#a71 the term applicable amount means an amount equal to the quotient of-- 7,a7 the amount of the credit allowable under subsection 7a71 as determined without regard to this subsection1 divided by 7,b7 an amount equal to the product of-- 7i7 #bj1 multiplied by 7ii7 the total number of qualifying children of the taxpayer4 7c7 ,qualifying child 7#a7 ,in general ,in this section1 the term qualifying child means a qualifying child of the taxpayer 7as defined in section #aeb7;c77 who has not attained #ag years of age4 7#b7 ,exception for certain non-citizens ,the term qualifying child shall not include any individual who would not be a dependent if subparagraph 7,a7 of section #aeb7;b77#c7 were applied without regard to all that follows resident of the ,united ,states4 7d7 ,inflation adjustment 7#a7 ,in general ,in the case of any taxable year beginning after #bjbj1 the #c1jjj amount in subsection 7a77#a7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under paragraph 7#b7 for the calendar year in which the taxable year begins4 7#b7 ,cost-of-living adjustment ,for purposes of paragraph 7#a71 the cost-of-living adjustment for any calendar year is the percentage 7if any7 by which-- 7,a7 the ,,cpi for the preceding calendar year 7as determined pursuant to section #a7;f77#d771 exceeds 7,b7 the ,,cpi for calendar year #bjai4 7#c7 ,rounding ,if any increase determined under paragraph 7#a7 is not a multiple of #ej1 such increase shall be rounded to the nearest multiple of #ej4 7e7 ,partial non-,refundable credit allowed for certain other dependents 7#a7 ,in general ,in the case of a taxable year beginning after ,december #ca1 #bjai1 and before ,january #a1 #bjbf1 the aggregate credits allowed to a taxpayer under subpart ,a shall be increased by #ejj for each dependent of the taxpayer 7as defined in section #aeb7 other than a qualifying child described in subsection 7c74 ,the amount of the credit allowed under this subsection shall not be treated as a credit allowed under this subpart4 7#b7 ,exception for certain noncitizens ,paragraph 7#a7 shall not apply with respect to any individual who would not be a dependent if subparagraph 7,a7 of section #aeb7;b77#c7 were applied without regard to all that follows resident of the ,united ,states4 7#c7 ,limitation 7,a7 ,in general ,the amount of the credit allowable under paragraph 7#a7 shall be reduced 7but not below zero7 by #ej for each #a1jjj 7or fraction thereof7 by which the taxpayer's modified adjusted gross income exceeds the threshold amount4 7,b7 ,modified adjusted gross income ,for purposes of subparagraph 7,a71 the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section #iaa1 #ica1 or #icc4 7,c7 ,threshold amount 7i7 ,in general ,for purposes of subparagraph 7,a71 the term threshold amount means-- 7,i7 #bjj1jjj in the case of a joint return1 7,,ii7 #aej1jjj in the case of an individual who is not married1 and 7,,iii7 #ajj1jjj in the case of a married individual filing a separate return4 7ii7 ,martial status ,for purposes of this subparagraph1 marital status shall be determined under section #ggjc4 7f7 ,identification requirements 7#a7 ,qualifying child and dependent identification requirement ,no credit shall be allowed under this section to a taxpayer with respect to any qualifying child or dependent unless the taxpayer includes the name and taxpayer identification number of such qualifying child or dependent on the return of tax for the taxable year and such taxpayer identification number was issued on or before the due date for filing such return4 7#b7 ,taxpayer identification requirement ,no credit shall be allowed under this section if the taxpayer identification number of the taxpayer was issued after the due date for filing the return for the taxable year4 7g7 ,taxable year must be full taxable year ,except in the case of a taxable year closed by reason of the death of the taxpayer1 no credit shall be allowable under this section in the case of a taxable year covering a period of less than #ab months4 7h7 ,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 7i7 ,reconciliation of credit and advance credit 7#a7 ,in general ,the amount of the credit allowed under this section for any taxable year shall be reduced 7but not below zero7 by the aggregate amount of any advance payments of such credit under section #gebg;,a for such taxable year4 7#b7 ,excess advance payments ,if the aggregate amount of advance payments under section #gebg;,a for the taxable year exceed the amount of the credit allowed under this section for such taxable year 7determined without regard to paragraph 7#a771 the tax imposed by this chapter for such taxable year shall be increased by the amount of such excess 4 7c7 ,advance payment of credit ,chapter #gg of the ,internal ,revenue ,code of #aihf is amended by inserting after section #gebg the following new section3 #gebg;,a4 ,advance payment of child tax credit 7a7 ,in general ,as soon as practicable and not later than #a year after the date of the enactment of this section1 the ,secretary shall establish a program for making advance payments of the credit allowed under subsection 7a7 of section #cf;,c on a monthly basis 7determined without regard to subsection 7i77#a7 of such section71 or as frequently as the ,secretary determines to be administratively feasible1 to taxpayers allowed such credit4 7b7 ,limitation 7#a7 ,in general ,the ,secretary may make payments under subsection 7a7 only to the extent that the total amount of such payments made to any taxpayer during the taxable year does not exceed an amount equal to the excess1 if any1 of-- 7,a7 subject to paragraph 7#b71 the amount determined under subsection 7a7 of section #cf;,c with respect to such taxpayer 7determined without regard to subsection 7i7 of such section7 for such taxable year1 over 7,b7 the estimated tax imposed by subtitle ,a1 as reduced by the credits allowable under subparts ,a and ,c 7with the exception of section #cf;,c7 of such part ,,iv1 with respect to such taxpayer for such taxable year1 as determined in such manner as the ,secretary deems appropriate4 7#b7 ,application of threshold amount limitation ,the program described in subsection 7a7 shall make reasonable efforts to apply the limitation of section #cf;,c7b7 with respect to payments made under such program4 4 7d7 ,conforming amendments 7#a7 ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a of subtitle ,a of the ,internal ,revenue ,code of #aihf is amended by striking the item relating to section #bd4 7#b7 ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of subtitle ,a of such ,code is amended by inserting after the item relating to section #cf;,b the following3 ,sec4 #cf;,c4 ,child tax credit44 7#c7 ,the table of sections for chapter #gg of such ,code is amended by inserting after the item relating to section #gebg the following new item3 ,sec4 #gebg;,a4 ,advance payment of child tax credit4 4 7#d7 ,subparagraph 7,b7 of section #de,r7f77#c7 of such ,code is amended to read as follows3 7,b7 ,special rule ,any amounts paid pursuant to an agreement under section #caba7l7 7relating to agreements entered into by ,american employers with respect to foreign affiliates7 which are equivalent to the taxes referred to in subparagraph 7,a7 shall be treated as taxes referred to in such subparagraph4 4 7#e7 ,section #aeb7;f77#f77;,b77ii7 of such ,code is amended by striking section #bd and inserting section #cf;,c4 7#f7 ,paragraph 7#bf7 of section #eja7;c7 of such ,code is amended in the flush matter at the end by striking section #bd7;c77 and inserting section #cf;,c7c774 7#g7 ,section #fbaa7;b77#d77;,a7 of such ,code is amended-- 7,a7 by striking #bd7;d711 and 7,b7 by inserting #cf;,c7a71 after #cf;,b14 7#h7 ,section #fbac7;g77#b7 of such ,code is amended-- 7,a7 in subparagraph 7,i71 by striking section #bd7;e7 and inserting section #cf;,c7f71 and 7,b7 in subparagraph 7,l71 by striking #bd1 or #cb and inserting #cb1 or #cf;,c4 7#i7 ,paragraph 7#b7 of section #acbd7;b7 of title #ca1 ,united ,states ,code1 is amended by inserting #cf;,c7a71 after #cf;,b14 7e7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #c4 ,payments to possessions 7a7 ,mirror ,code ,possession ,the ,secretary of the ,treasury shall pay to each possession of the ,united ,states with a mirror code tax system amounts equal to the loss to that possession by reason of the application of section #cf;,c of the ,internal ,revenue ,code of #aihf 7as added by section #b7 with respect to taxable years beginning after #bjai4 ,such amounts shall be determined by the ,secretary of the ,treasury based on information provided by the government of the respective possession4 7b7 ,other possessions ,the ,secretary of the ,treasury shall pay to each possession of the ,united ,states which does not have a mirror code tax system amounts estimated by the ,secretary of the ,treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the application of section #cf;,c of such ,code 7as so added7 for taxable years beginning after #bjai if a mirror code tax system had been in effect in such possession4 ,the preceding sentence shall not apply with respect to any possession of the ,united ,states unless such possession has a plan1 which has been approved by the ,secretary of the ,treasury1 under which such possession will promptly distribute such payments to the residents of such possession4 7c7 ,coordination with credit allowed against ,united ,states ,income ,taxes ,no credit shall be allowed against ,united ,states income taxes for any taxable year under section #cf;,c of the ,internal ,revenue ,code of #aihf 7as so added7 to any person-- 7#a7 to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section for such taxable year1 or 7#b7 who is eligible for a payment under a plan described in subsection 7b7 with respect to such taxable year4 7d7 ,definitions and special rules 7#a7 ,possession of the ,united ,states ,for purposes of this section1 the term possession of the ,united ,states includes the ,commonwealth of ,puerto ,rico and the ,commonwealth of the ,northern ,mariana ,islands4 7#b7 ,mirror ,code ,tax ,system ,for purposes of this section1 the term mirror code tax system means1 with respect to any possession of the ,united ,states1 the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the ,united ,states as if such possession were the ,united ,states4 7#c7 ,treatment of payments ,for purposes of section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 the payments under this section shall be treated in the same manner as a refund due from the credit allowed under section #cf;,c of the ,internal ,revenue ,code of #aihf4