,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #fij  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,m>* #f1 #bjai,mr4     
,b5net 7= himself1 ,mr4 ,br[n1 ,ms4     
,baldw91 ,mr4 ,blum5?al1 ,mr4 ,book]1   
,mr4 ,c>d91 ,mr4 ,casey1 ,mr4 ,coons1   
,ms4 ,cortez ,ma/o1 ,ms4 ,duckwor?1 ,mr4
 ,durb91 ,mrs4 ,gillibr&1 ,ms4 ,h>ris1  
,ms4 ,hassan1 ,mr4 ,he9ri*1 ,ms4        
,hirono1 ,mr4 ,jones1 ,ms4 ,klobu*>1    
,mr4 ,leahy1 ,mr4 ,m>key1 ,mr4 ,m55dez1 
,mr4 ,m]kley1 ,mr4 ,murphy1 ,mrs4       
,murray1 ,mr4 ,pet]s1 ,mr4 ,re$1 ,mr4   
,s&]s1 ,mr4 ,s*atz1 ,mr4 ,s*um]1 ,mrs4  
,%ahe51 ,ms4 ,smi?1 ,ms4 ,/ab5[1 ,mr4   
,te/]1 ,mr4 ,van ,holl51 ,ms4 ,w>r51    
,mr4 ,:iteh\se1 & ,mr4 ,wyd57 introduc$ 
! foll[+ bill2 :i* 0 read twice & ref]r$
 to ! ,committee on ,f9ance  ,a ,,bill  
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to make ! *ild tax cr$it fully    
refundable1 e/abli% an increas$ *ild tax
 cr$it = "y *ildr51 & = o!r purposes4   
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,am]ican ,family ,act ( #bjai4  #b4   

,e/abli%m5t ( fully refundable *ild tax 
cr$it  7a7 ,elim9ation ( exi/+ *ild tax 
cr$it ,subp>t ,a ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a ( subtitle ,a ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
section #bd4  7b7 ,e/abli%m5t ( fully   
refundable *ild tax cr$it ,subp>t ,c (  
"p ,,iv ( sub*apt] ,a ( *apt] #a (      
subtitle ,a ( su* ,code is am5d$ by     
ins]t+ aft] section #cf;,b ! foll[+ new 
section3  #cf;,c4 ,*ild tax cr$it  7a7  
,all[ance ( cr$it ,!re %all be all[$ z a
 cr$it aga9/ ! tax impos$ by ?is *apt] =
 ! taxable ye> an am\nt equal to ! sum  
(--  7#a7 ) respect to ea* qualify+ *ild
 ( ! taxpay] :o has atta9$ #f ye>s ( age
 be=e ! close ( su* taxable ye> & = :i* 
! taxpay] is all[$ a d$uction "u section
 #aea1 an am\nt equal to #c1jjj1 &  7#b7
 ) respect to ea* qualify+ *ild ( !     
taxpay] :o has n atta9$ #f ye>s ( age   
be=e ! close ( su* taxable ye> & = :i* !
 taxpay] is all[$ a d$uction "u section 
#aea1 an am\nt equal to #abj p]c5t ( !  
doll> am\nt 9 p>agraph 7#a74  7b7       

,limitation  7#a7 ,9 g5]al ,! am\nt ( ! 
cr$it all[able "u subsection 7a7 %all be
 r$uc$ 7b n bel[ z]o7 by ! applicable   
am\nt = ea* #a1jjj 7or fraction !re(7 by
 :i* ! taxpay]'s modifi$ adju/$ gross   
income exce$s ! ?re%old am\nt4 ,=       
purposes ( ! prec$+ s5t5ce1 ! t]m       
modifi$ adju/$ gross income means adju/$
 gross income increas$ by any am\nt     
exclud$ f gross income "u section #iaa1 
#ica1 or #icc4  7#b7 ,?re%old am\nt     
7,a7 ,9 g5]al ,= purposes ( p>agraph    
7#a71 ! t]m ?re%old am\nt means-- 7i7   
#ahj1jjj 9 ! case ( a jo9t return1  7ii7
 #acj1jjj 9 ! case ( an individual :o is
 n m>ri$1 &  7iii7 #ij1jjj 9 ! case ( a 
m>ri$ individual fil+ a sep>ate return4 
7,b7 ,m>ital /atus ,= purposes ( ?is    
p>agraph1 m>ital /atus %all be det]m9$  
"u section #ggjc4  7#c7 ,applicable     
am\nt ,= purposes ( p>agraph 7#a71 ! t]m
 applicable am\nt means an am\nt equal  
to ! quoti5t (--  7,a7 ! am\nt ( ! cr$it
 all[able "u subsection 7a71 z det]m9$  
)\t reg>d to ?is subsection1 divid$ by  

7,b7 an am\nt equal to ! product (-- 7i7
 #bj1 multipli$ by  7ii7 ! total numb] (
 qualify+ *ildr5 ( ! taxpay]4  7c7      
,qualify+ *ild  7#a7 ,9 g5]al ,9 ?is    
section1 ! t]m qualify+ *ild means a    
qualify+ *ild ( ! taxpay] 7z def9$ 9    
section #aeb7;c77 :o has n atta9$ #ag   
ye>s ( age4  7#b7 ,exception = c]ta9    
non-citiz5s ,! t]m qualify+ *ild %all n 
include any individual :o w\ld n be a   
dep5d5t if subp>agraph 7,a7 ( section   
#aeb7;b77#c7 7 appli$ )\t reg>d to all t
 foll[s resid5t ( ! ,unit$ ,/ates4  7d7 
,inflation adju/m5t  7#a7 ,9 g5]al ,9 ! 
case ( any taxable ye> beg9n+ aft]      
#bjbj1 ! #c1jjj am\nt 9 subsection      
7a77#a7 %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 p>agraph 7#b7 = ! cal5d> ye>
 9 :i* ! taxable ye> beg9s4  7#b7       
,co/-(-liv+ adju/m5t ,= purposes (      
p>agraph 7#a71 ! co/-(-liv+ adju/m5t =  
any cal5d> ye> is ! p]c5tage 7if any7 by
 :i*--  7,a7 ! ,,cpi = ! prec$+ cal5d>  

ye> 7z det]m9$ pursuant to section      
#a7;f77#d771 exce$s  7,b7 ! ,,cpi =     
cal5d> ye> #bjai4  7#c7 ,r\nd+ ,if any  
increase det]m9$ "u p>agraph 7#a7 is n a
 multiple ( #ej1 su* increase %all be   
r\nd$ to ! ne>e/ multiple ( #ej4  7e7   
,p>tial non-,refundable cr$it all[$ =   
c]ta9 o!r dep5d5ts  7#a7 ,9 g5]al ,9 !  
case ( a taxable ye> beg9n+ aft]        
,decemb] #ca1 #bjai1 & be=e ,janu>y #a1 
#bjbf1 ! aggregate cr$its all[$ to a    
taxpay] "u subp>t ,a %all be increas$ by
 #ejj = ea* dep5d5t ( ! taxpay] 7z def9$
 9 section #aeb7 o!r ?an a qualify+ *ild
 describ$ 9 subsection 7c74 ,! am\nt ( !
 cr$it all[$ "u ?is subsection %all n be
 treat$ z a cr$it all[$ "u ?is subp>t4  
7#b7 ,exception = c]ta9 noncitiz5s      
,p>agraph 7#a7 %all n apply ) respect to
 any individual :o w\ld n be a dep5d5t  
if subp>agraph 7,a7 ( section           
#aeb7;b77#c7 7 appli$ )\t reg>d to all t
 foll[s resid5t ( ! ,unit$ ,/ates4  7#c7
 ,limitation  7,a7 ,9 g5]al ,! am\nt ( !
 cr$it all[able "u p>agraph 7#a7 %all be

 r$uc$ 7b n bel[ z]o7 by #ej = ea*      
#a1jjj 7or fraction !re(7 by :i* !      
taxpay]'s modifi$ adju/$ gross income   
exce$s ! ?re%old am\nt4  7,b7 ,modifi$  
adju/$ gross income ,= purposes (       
subp>agraph 7,a71 ! t]m modifi$ adju/$  
gross income means adju/$ gross income  
increas$ by any am\nt exclud$ f gross   
income "u section #iaa1 #ica1 or #icc4  
7,c7 ,?re%old am\nt  7i7 ,9 g5]al ,=    
purposes ( subp>agraph 7,a71 ! t]m      
?re%old am\nt means-- 7,i7 #bjj1jjj 9 ! 
case ( a jo9t return1  7,,ii7 #aej1jjj 9
 ! case ( an individual :o is n m>ri$1 &
  7,,iii7 #ajj1jjj 9 ! case ( a m>ri$   
individual fil+ a sep>ate return4  7ii7 
,m>tial /atus ,= purposes ( ?is         
subp>agraph1 m>ital /atus %all be       
det]m9$ "u section #ggjc4  7f7          
,id5tification requirem5ts  7#a7        
,qualify+ *ild & dep5d5t id5tification  
requirem5t ,no cr$it %all be all[$ "u   
?is section to a taxpay] ) respect to   
any qualify+ *ild or dep5d5t unless !   
taxpay] includes ! "n & taxpay]         

id5tification numb] ( su* qualify+ *ild 
or dep5d5t on ! return ( tax = ! taxable
 ye> & su* taxpay] id5tification numb] 0
 issu$ on or be=e ! due date = fil+ su* 
return4  7#b7 ,taxpay] id5tification    
requirem5t ,no cr$it %all be all[$ "u   
?is section if ! taxpay] id5tification  
numb] ( ! taxpay] 0 issu$ aft] ! due    
date = fil+ ! return = ! taxable ye>4   
7g7 ,taxable ye> mu/ be full taxable ye>
 ,except 9 ! case ( a taxable ye> clos$ 
by reason ( ! dea? ( ! taxpay]1 no cr$it
 %all be all[able "u ?is section 9 !    
case ( a taxable ye> cov]+ a p]iod (    
less ?an #ab mon?s4  7h7 ,re/rictions on
 taxpay]s :o improp]ly claim$ 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$it4  7i7           
,reconciliation ( cr$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* excess  4  7c7        
,advance paym5t ( cr$it ,*apt] #gg ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
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      
subsection 7a7 ( section #cf;,c on a    
mon?ly basis 7det]m9$ )\t reg>d to      
subsection 7i77#a7 ( su* section71 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 subsection 7a7 ( 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  7d7
 ,con=m+ am5dm5ts  7#a7 ,! table (      
sections = subp>t ,a ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( subtitle ,a ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by /rik+ ! item relat+ to section #bd4 
7#b7 ,! table ( sections = subp>t ,c (  
"p ,,iv ( sub*apt] ,a ( *apt] #a (      
subtitle ,a ( su* ,code is am5d$ by     

ins]t+ aft] ! item relat+ to section    
#cf;,b ! foll[+3 ,sec4 #cf;,c4 ,*ild tax
 cr$it44  7#c7 ,! table ( sections =    
*apt] #gg ( su* ,code is am5d$ by ins]t+
 aft] ! item relat+ to section #gebg !  
foll[+ new item3  ,sec4 #gebg;,a4       
,advance paym5t ( *ild tax cr$it4  4    
7#d7 ,subp>agraph 7,b7 ( section        
#de,r7f77#c7 ( su* ,code is am5d$ 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#e7   
,section #aeb7;f77#f77;,b77ii7 ( su*    
,code is am5d$ by /rik+ section #bd &   
ins]t+ section #cf;,c4  7#f7 ,p>agraph  
7#bf7 ( section #eja7;c7 ( su* ,code is 
am5d$ 9 ! flu% matt] at ! end by /rik+  
section #bd7;c77 & ins]t+ section       
#cf;,c7c774  7#g7 ,section              
#fbaa7;b77#d77;,a7 ( su* ,code is       

am5d$-- 7,a7 by /rik+ #bd7;d711 &  7,b7 
by ins]t+ #cf;,c7a71 aft] #cf;,b14  7#h7
 ,section #fbac7;g77#b7 ( su* ,code is  
am5d$--  7,a7 9 subp>agraph 7,i71 by    
/rik+ section #bd7;e7 & ins]t+ section  
#cf;,c7f71 &  7,b7 9 subp>agraph 7,l71  
by /rik+ #bd1 or #cb & ins]t+ #cb1 or   
#cf;,c4  7#i7 ,p>agraph 7#b7 ( section  
#acbd7;b7 ( title #ca1 ,unit$ ,/ates    
,code1 is am5d$ by ins]t+ #cf;,c7a71    
aft] #cf;,b14  7e7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjai4  #c4 ,paym5ts to possessions
  7a7 ,mirror ,code ,possession ,!      
,secret>y ( ! ,treasury %all pay to ea* 
possession ( ! ,unit$ ,/ates ) a mirror 
code tax sy/em am\nts equal to ! loss to
 t possession by reason ( ! application 
( section #cf;,c ( ! ,int]nal ,rev5ue   
,code ( #aihf 7z add$ by section #b7 )  
respect to taxable ye>s beg9n+ aft]     
#bjai4 ,su* am\nts %all be det]m9$ by ! 
,secret>y ( ! ,treasury bas$ on         
in=mation provid$ by ! gov]nm5t ( !     

respective possession4  7b7 ,o!r        
possessions ,! ,secret>y ( ! ,treasury  
%all pay to ea* possession ( ! ,unit$   
,/ates :i* does n h a mirror code tax   
sy/em am\nts e/imat$ by ! ,secret>y ( ! 
,treasury z be+ equal to ! aggregate    
b5efits t w\ld h be5 provid$ to resid5ts
 ( su* possession by reason ( !         
application ( section #cf;,c ( su* ,code
 7z s add$7 = taxable ye>s beg9n+ aft]  
#bjai if a mirror code tax sy/em _h be5 
9 effect 9 su* possession4 ,! prec$+    
s5t5ce %all n apply ) respect to any    
possession ( ! ,unit$ ,/ates unless su* 
possession has a plan1 :i* has be5      
approv$ by ! ,secret>y ( ! ,treasury1 "u
 :i* su* possession w promptly di/ribute
 su* paym5ts to ! resid5ts ( su*        
possession4  7c7 ,coord9ation ) cr$it   
all[$ aga9/ ,unit$ ,/ates ,income ,taxes
 ,no cr$it %all be all[$ aga9/ ,unit$   
,/ates income taxes = any taxable ye> "u
 section #cf;,c ( ! ,int]nal ,rev5ue    
,code ( #aihf 7z s add$7 to any p]son-- 
7#a7 to :om a cr$it is all[$ aga9/ taxes

 impos$ by ! possession by reason ( !   
am5dm5ts made by ?is section = su*      
taxable ye>1 or  7#b7 :o is eligible = a
 paym5t "u a plan describ$ 9 subsection 
7b7 ) respect to su* taxable ye>4  7d7  
,def9itions & special rules  7#a7       
,possession ( ! ,unit$ ,/ates ,=        
purposes ( ?is section1 ! t]m possession
 ( ! ,unit$ ,/ates includes !           
,commonweal? ( ,pu]to ,rico & !         
,commonweal? ( ! ,nor!rn ,m>iana ,isl&s4
  7#b7 ,mirror ,code ,tax ,sy/em ,=     
purposes ( ?is section1 ! t]m mirror    
code tax sy/em means1 ) respect to any  
possession ( ! ,unit$ ,/ates1 ! income  
tax sy/em ( su* possession if ! income  
tax liability ( ! resid5ts ( su*        
possession "u su* sy/em is det]m9$ by   
ref]5ce to ! income tax laws ( ! ,unit$ 
,/ates z if su* possession 7 ! ,unit$   
,/ates4  7#c7 ,treatm5t ( paym5ts ,=    
purposes ( section #acbd7;b77#b7 ( title
 #ca1 ,unit$ ,/ates ,code1 ! paym5ts "u 
?is section %all be treat$ 9 ! same     
mann] z a refund due f ! cr$it all[$ "u 

section #cf;,c ( ! ,int]nal ,rev5ue     
,code ( #aihf4