,i  #aah? ,,congress  #a/ ,session  ,h4 
,r4 #edba  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,septemb] #ab1        
#bjbc,mrs4 ,watson ,coleman 7= h]self1  
,mr4 ,c>t] ( ,l\isiana1 ,ms4 ,lee (     
,cali=nia1 & ,ms4 ,adams7 introduc$ !   
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,ways & ,means  ,a ,,bill 
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to ext5d ! e>n$ income tax cr$it  
to all taxpay]s ) dep5d5ts & to qualify+
 /ud5ts1 & = o!r purposes4  #a4 ,%ort   
title ,?is ,act may be cit$ z ! ,,eitc  
,mod]nization ,act4  #b4 ,f9d+s         
,congress f9ds ! foll[+3  7#a7 ,! ,f$]al
 e>n$ income tax cr$it is a refundable  
tax cr$it = l[]- & middle-income work+  
individuals & families ^: e>n+s are bel[
 an income ?re%old4  7#b7 ,s9ce its     
e/abli%m5t 9 #aige1 ! cr$it has increas$
 family income1 r$uc$ *ild pov]ty1 &    
promot$ employm5t by supplem5t+ ! e>n+s 
( l[-wage work]s1 includ+ milit>y       
families4  7#c7 ,! cr$it has a positive 
impact on ! education & heal? ( *ildr5  

liv+ 9 pov]ty4  7#d7 ,! cr$it has a     
positive economic impact on local       
economies & bus9esses because x puts m  
money 9 ! h&s ( l[- & middle-income     
work+ p :o sp5d ! money on imm$iate     
ne$s1 su* z groc]ies1 s*ool supplies1 c>
 repairs1 r5t1 & heal? c>e4  7#e7 ,!    
wid5+ gap betwe5 ! incomes ( ! weal?ie/ 
,am]icans & ^? ( middle- & l[]-income   
,am]icans is al>m+4  7#f7 ,!re is an    
urg5t ne$ to address t gap1 includ+     
?r\gh measures l ?is legislation & by   
rais+ ! ,f$]al m9imum wage :i* toge!r   
increase ! wages ( work+ ,am]icans1 wid5
 ! pa? to income /ability1 & n>r[ income
 inequality4  #c4 ,modifications ( !    
e>n$ income tax cr$it  7a7 ,inclusion ( 
individuals ) qualify+ dep5d5ts  7#a7 ,9
 g5]al ,section #cb7;c77#a7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$-- 7,a7 9
 subp>agraph 7,a71 by /rik+ qualify+    
*ild ea* place su* t]m appe>s & ins]t+  
qualify+ dep5d5t1 &  7,b7 by /rik+      
subp>agraphs 7,b7 & 7,f7 & by r$esignat+
 subp>agraphs 7,c71 7,d71 & 7,e7 z      

subp>agraphs 7,b71 7,c71 & 7,d71        
respectively4  7#b7 ,qualify+ dep5d5t   
def9$ ,section #cb7;c7 ( su* ,code is   
am5d$ by r$esignat+ p>agraphs 7#c7 &    
7#d7 z p>agraphs 7#e7 & 7#f71 & by      
ins]t+ aft] p>agraph 7#b7 ! foll[+ new  
p>agraphs3  7#c7 ,qualify+ dep5d5t  7,a7
 ,9 g5]al ,! t]m qualify+ dep5d5t means1
 ) respect to a taxable ye>-- 7i7 a     
qualify+ *ild1  7ii7 an ag$ dep5d5t1 or 
7iii7 a qualify+ individual describ$ 9  
subp>agraph 7,b7 or 7,c7 ( section      
#ba7;b77#a74  7,b7 ,id5tification       
requirem5ts ,no cr$it %all be all[$ "u  
?is section ) respect to a qualify+     
dep5d5t unless ! taxpay] includes ! "n1 
age1 & ,,t9 ( ! individual on ! return (
 tax = ! taxable ye>4  7,c7 ,place (    
abode ,! t]m qualify+ dep5d5t %all n    
include an individual unless su*        
individual has a pr9cipal place ( abode 
9 ! ,unit$ ,/ates = m ?an "o-half ( su* 
taxable ye>4  7#d7 ,ag$ dep5d5t ,! t]m  
ag$ dep5d5t means a dep5d5t = :om a     
d$uction is all[able "u section #aea :o 

has atta9$ ! age ( #fe be=e ! close ( ! 
taxable ye>4  4  7#c7 ,con=m+ am5dm5ts  
7,a7 ,! tables 9 p>agraphs 7#a7 & 7#b7 (
 section #cb7;b7 ( su* ,code are ea*    
am5d$--  7i7 by /rik+ qualify+ *ild ea* 
place x appe>s & ins]t+ qualify+        
dep5d5t1 &  7ii7 by /rik+ qualify+      
*ildr5 ea* place x appe>s & ins]t+      
qualify+ dep5d5ts4  7,b7 ,section       
#cb7;c77#e7 ( su* ,code1 z r$esignat$ by
 ?is ,act1 is am5d$ by /rik+            
subp>agraphs 7,c7 & 7,d74  7,c7 ,section
 #cb7m7 ( su* ,code is am5d$ by /rik+   
7c77#c77;,d7 & ins]t+ 7c77#c77;,b74  7b7
 ,inclusion ( qualify+ /ud5ts  7#a7 ,9  
g5]al ,section #cb7;c77#a77;,a7 ( su*   
,code is am5d$ by /rik+ or at ! end (   
clause 7i71 by /rik+ ! p]iod at ! end ( 
clause 7ii77,,iii7 & ins]t+ 1 or1 & by  
ins]t+ aft] clause 7ii77,,iii7 ! foll[+ 
new clause3  7iii7 any individual :o is 
a qualify+ /ud5t4  4  7#b7 ,qualify+    
/ud5t def9$ ,section #cb7;c77#a7 ( su*  
,code1 z am5d$ by subsection 7a71 is    
fur!r am5d$ by add+ at ! end ! foll[+   

new subp>agraph3  7,e7 ,qualify+ /ud5t  
,! t]m qualify+ /ud5t means1 ) respect  
to a taxable ye>1 an individual :o is an
 eligible /ud5t 7z def9$ 9 section      
#be;,a7b77#c77 ) respect to an          
in/itution ( high] education 7z def9$ 9 
section #aja ( ! ,high] ,education ,act 
( #aife7 :o--  7i7 is n a dep5d5t = :om 
a d$uction is all[able "u section #aea  
to ano!r taxpay] = any taxable ye>      
beg9n+ 9 ! same cal5d> ye> z su* taxable
 ye>1 &  7ii7 ei!r--  7,i7 is qualifi$ =
 a ,f$]al ,pell ,grant ) respect to !   
academic ye> beg9n+ 9 su* taxable ye>1  
or  7,,ii7 has modifi$ adju/$ gross     
income ( less ?an #bej p]c5t ( ! pov]ty 
l9e = ! size ( ! family involv$ = !     
taxable ye>4  7,f7 ,def9itions ,=       
purposes ( ?is subp>agraph3 7i7 ,modifi$
 adju/$ gross income ,! 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  
7ii7 ,pov]ty l9e  7,i7 ,9 g5]al ,! t]m  

pov]ty l9e has ! mean+ giv5 su* t]m 9   
section #fgc7b7 ( ! ,community ,s]vices 
,block ,grant ,act 7#db ,u4,s4,c4       
#iijb7b771 includ+ any revision requir$ 
by su* section4  7,,ii7 ,family size ,= 
purposes ( det]m9+ ! pov]ty l9e         
applicable to ! taxpay]1 ! family size )
 respect to any taxpay] %all be equal to
 ! numb] ( individuals = :om ! taxpay]  
is all[$ a d$uction "u section #aea     
7relat+ to all[ance ( d$uction = p]sonal
 exemptions7 = ! taxable ye>4  4  7#c7  
,con=m+ am5dm5t ,section                
#cb7;c77#a77;,a77ii7 ( su* ,code is     
am5d$ by ins]t+ 7o!r ?an a qualify+     
/ud5t7 aft] any o!r individual4  7c7    
,m9imum cr$it = /ud5ts & = individuals )
 c]ta9 qualify+ dep5d5ts ,section       
#cb7;a7 ( su* ,code is am5d$ by add+ at 
! end ! foll[+ new p>agraph3  7#c7      
,m9imum cr$it = /ud5ts & = individuals )
 c]ta9 qualify+ dep5d5ts  7,a7 ,9 g5]al 
,9 ! case ( a qualify+ /ud5t1 or an     
eligible individual :o has a specifi$   
dep5d5t = ! taxable ye>1 ! am\nt det]m9$

 "u p>agraph 7#a7 7be=e ! application ( 
p>agraph 7#b77 & ! am\nt det]m9$ "u     
p>agraph 7#b77;,a7 %all n be less ?an   
#a1bjj4  7,b7 ,specifi$ dep5d5t ,=      
purposes ( ?is p>agraph1 ! t]m specifi$ 
dep5d5t means any qualify+ dep5d5t 7o!r 
?an a qualify+ *ild :o has atta9$ ! age 
( #g be=e ! close ( ! taxable ye>74  4  
7d7 ,mon?ly paym5t ,section #cb ( su*   
,code1 z am5d$ by ?is ,act1 is fur!r    
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7n7 ,mon?ly paym5t  7#a7 ,9
 g5]al ,9 ! case ( an individual :o is  
entitl$ to a refund relat+ to an        
ov]paym5t ( tax impos$ by ?is subtitle t
 exce$s #bdj 7b only to ! ext5t su*     
refund does n exce$ ! cr$it all[$ "u ?is
 section7 su* individual may elect to h 
! ,secret>y1 9 lieu ( su* refund1 make a
 paym5t equal to--  7,a7 #b_/ac ( su*   
refund 7) int]e/7 dur+ ! e>li] ( ! fir/ 
practicable mon? or ! second mon? t     
beg9s aft] ! date ! return 0 fil$1 &    
7,b7 #a_/ac ( su* refund 7) int]e/7 dur+
 ea* ( ! #aa mon?s subsequ5t to ! mon?  

det]m9$ "u subp>agraph 7,a74  7#b7      
,me?od ( paym5t ,a paym5t made "u ?is   
subsection %all be made by direct       
deposit or by g5]al-use prepaid c>d1 or 
by su* o!r me?od 7o!r ?an by *eck7 z !  
,secret>y may prescribe & ! taxpay] may 
elect4  7#c7 ,"o-"t increase ,! fir/ "t 
an individual receives a paym5t "u ?is  
subsection1 p>agraph 7#a77;,a7 %all be  
appli$ by sub/itut+ #d_/ac = #b_/ac4  4 
7e7 ,special rule = new l[-,income p>5ts
 ,section #cb ( su* ,code1 z am5d$ by   
?is ,act1 is fur!r am5d$ by add+ at !   
end ! foll[+ new subsection3  7o7       
,special rule = new l[-,income p>5ts    
7#a7 ,9 g5]al ,9 ! case ( an individual 
:o--  7,a7 is eligible = paym5ts "u     
subsection 7o77#a7 ) respect to a refund
 = a taxable ye>1 &  7,b7 has a qualify+
 *ild :o is born or adopt$ dur+ ! foll[+
 taxable ye> & n lat] ?an ! p5ultimate  
mon? = :i* ! taxpay] is eligible = su*  
paym5ts1  ! am\nt ( any su* paym5ts made
 aft] su* bir? or adoption %all be      
adju/$ to ! am\nt su* paym5ts w\ld be if

 su* qualify+ *ild 7 a qualify+ *ild ( !
 taxpay] "u ?is section = ! taxable ye> 
to :i* su* paym5ts relate4  7#b7        
,qualify+ *ild det]m9ation ,= purposes (
 det]m9+ if a *ild is a qualify+ *ild = 
purposes ( ?is subsection1 subsection   
7m7 %all be appli$ by ins]t+ or1 9 !    
case ( an adoption1 su* o!r id5tify+    
in=mation z specifi$ by ! ,secret>y be=e
 ! p]iod at ! end4  4  7f7 ,age (       
eligible individuals )\t dep5d5ts       
,section #cb7;c77#a77;,a77ii77,,ii7 (   
su* ,code is am5d$ by /rik+ age #be b n 
atta9$ age #fe & ins]t+ age #ah4  7g7   
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #d4 ,return prep>ation programs =
 l[-income taxpay]s  7a7 ,9 g5]al ,*apt]
 #gg ( su* ,code is am5d$ by ins]t+ aft]
 section #gebf;,a ! foll[+ new section3 
#gebf;,b4 ,return prep>ation programs = 
l[-income taxpay]s  7a7 ,e/abli%m5t (   
volunte] income tax assi/ance mat*+     
grant program ,! ,secret>y1 ?r\gh !     

,int]nal ,rev5ue ,s]vice1 %all e/abli% a
 ,community ,volunte] ,income ,tax      
,assi/ance ,mat*+ ,grant ,program "u :i*
 ! ,secret>y may1 subject to !          
availability ( appropriat$ funds1 make  
grants to provide mat*+ funds = !       
developm5t1 expansion1 or cont9uation ( 
qualifi$ return prep>ation programs     
assi/+ l[-income taxpay]s & memb]s (    
und]s]v$ populations4  7b7 ,use ( funds 
7#a7 ,9 g5]al ,qualifi$ return          
prep>ation programs may use grants      
receiv$ "u ?is section =--  7,a7 ord9>y 
& necess>y co/s associat$ ) program     
op]ation 9 accordance ) co/ pr9ciples "u
 ! applicable ,(fice ( ,managem5t &     
,budget circul>1 includ+-- 7i7 wages or 
sal>ies ( p]sons coord9at+ ! activities 
( ! program1  7ii7 develop+ tra9+       
mat]ials1 conduct+ tra9+1 & p]=m+       
quality reviews ( ! returns prep>$ "u ! 
program1  7iii7 equipm5t pur*ases1 &    
7iv7 vehicle-relat$ exp5ses associat$ ) 
remote or rural tax prep>ation s]vices1 
7,b7 outrea* & educational activities   

describ$ 9 subsection 7c77#b77;,b71 &   
7,c7 s]vices relat$ to f9ancial         
education & capability1 asset           
developm5t1 & ! e/abli%m5t ( sav+s      
acc\nts 9 connection ) tax return       
prep>ation4  7#b7 ,use ( grants =       
ov]head exp5ses prohibit$ ,no grant     
receiv$ "u ?is section may be us$ =     
ov]head exp5ses t are n directly relat$ 
to a qualifi$ return prep>ation program4
  7c7 ,application  7#a7 ,9 g5]al ,ea*  
applicant = a grant "u ?is section %all 
submit an application to ! ,secret>y at 
su* "t1 9 su* mann]1 & conta9+ su*      
in=mation z ! ,secret>y may reasonably  
require4  7#b7 ,priority ,9 aw>d+ grants
 "u ?is section1 ! ,secret>y %all give  
priority to applications :i*            
demon/rate--  7,a7 assi/ance to         
l[-income taxpay]s1 ) emphasis on       
outrea* to1 & s]vices =1 su* taxpay]s1  
7,b7 taxpay] outrea* & educational      
activities relat+ to eligibility &      
availability ( income supports available
 ?r\gh ! ,int]nal ,rev5ue ,code ( #aihf1

 includ+ ! e>n$ income tax cr$it1 &     
7,c7 specific outrea* & focus on "o or m
 und]s]v$ populations4  7#c7 ,am\nts    
tak5 into acc\nt ,9 det]m9+ mat*+ grants
 "u ?is section1 ! ,secret>y %all only  
take into acc\nt am\nts provid$ by !    
qualifi$ return prep>ation program =    
exp5ses describ$ 9 subsection 7b74  7d7 
,accuracy reviews  7#a7 ,9 g5]al ,!     
,secret>y %all e/abli% proc$ures =1 &   
%all conduct1 p]iodic site visits (     
qualifi$ return prep>ation programs     
op]at+ "u a grant "u ?is section-- 7,a7 
to ensure su* programs are c>ry+ out !  
purposes ( ?is section1 &  7,b7 to      
det]m9e ! return prep>ation accuracy    
rate ( ! program4  7#b7 ,additional     
requirem5ts = grant recipi5ts n meet+   
m9imum /&>ds ,9 ! case ( any qualifi$   
return prep>ation program :i*--  7,a7 is
 aw>d$ a grant "u ?is section1 &  7,b7  
is subsequ5tly det]m9$--  7i7 to h a    
less ?an #ij p]c5t av]age accuracy rate 
= prep>ation ( tax returns1 or  7ii7 n  
to be o!rwise c>ry+ out ! purposes ( ?is

 section1  su* program %all n be        
eligible = any additional grants "u ?is 
section unless su* program provides     
suffici5t docum5tation ( corrective     
measures e/abli%$ to address any su*    
defici5cies det]m9$4  7e7 ,def9itions ,=
 purposes ( ?is section-- 7#a7 ,qualifi$
 return prep>ation program ,! t]m       
qualifi$ return prep>ation program means
 any program--  7,a7 :i* provides       
assi/ance to individuals1 n less ?an #ij
 p]c5t ( :om are l[-income taxpay]s1 9  
prep>+ & fil+ ,f$]al income tax returns1
  7,b7 :i* is adm9i/]$ by a qualifi$    
entity1  7,c7 9 :i* all volunte]s :o    
assi/ 9 ! prep>ation ( ,f$]al income tax
 returns meet ! tra9+ requirem5ts       
prescrib$ by ! ,secret>y1 &  7,d7 :i*   
uses a quality review process :i*       
reviews #ajj p]c5t ( all returns4  7#b7 
,qualifi$ entity  7,a7 ,9 g5]al ,! t]m  
qualifi$ entity means any entity :i*--  
7i7 is an eligible organization1  7ii7  
is 9 compliance ) ,f$]al tax fil+ &     
paym5t requirem5ts1  7iii7 is n deb>r$  

or susp5d$ f ,f$]al contracts1 grants1  
or coop]ative agreem5ts1 &  7iv7 agrees 
to provide docum5tation to sub/antiate  
any mat*+ funds provid$ pursuant to !   
grant program "u ?is section4  7,b7     
,eligible organization ,! t]m eligible  
organization means--  7i7 an in/itution 
( high] education :i* is describ$ 9     
section #ajb 7o!r ?an subsection        
7a77#a77;,c7 !re(7 ( ! ,high] ,education
 ,act ( #aife 7#bj ,u4,s4,c4 #ajjb71 z 9
 effect on ! date ( ! enactm5t ( ?is    
section1 & :i* has n be5 disqualifi$ f  
p>ticipat+ 9 a program "u title ,,iv (  
su* ,act1  7ii7 an organization describ$
 9 section #eja7;c7 & exempt f tax "u   
section #eja7;a71  7iii7 a local        
gov]nm5t ag5cy1 includ+-- 7,i7 a c\nty  
or municipal gov]nm5t ag5cy1 &  7,,ii7  
an ,indian tribe1 z def9$ 9 section     
#d7ac7 ( ! ,native ,am]ican ,h\s+       
,assi/ance & ,self-,det]m9ation ,act (  
#aiif 7#be ,u4,s4,c4 #dajc7ac771 includ+
 any tribally designat$ h\s+ entity 7z  
def9$ 9 section #d7bb7 ( su* ,act 7#be  

,u4,s4,c4 #dajc7bb7771 tribal subsidi>y1
 subdivision1 or o!r :olly own$ tribal  
entity1  7iv7 a local1 ,/ate1 regional1 
or national coalition 7) "o lead        
organization :i* meets ! eligibility    
requirem5ts ( clause 7i71 7ii71 or 7iii7
 act+ z ! applicant organization71 or   
7v7 9 ! case ( a t>get$ population or   
community ) respect to :i* no           
organizations describ$ 9 ! prec$+       
clauses are available-- 7,i7 a ,/ate    
gov]nm5t ag5cy1 or  7,,ii7 an (fice     
provid+ ,coop]ative ,ext5sion s]vices 7z
 e/abli%$ at ! l&-grant colleges &      
univ]sities "u ! ,smi?-,lev] ,act ( ,may
 #h1 #aiad74  7#c7 ,l[-income taxpay]s  
,! t]m l[-income taxpay] means a taxpay]
 ^: income = ! taxable ye> does n exce$ 
an am\nt equal to ! complet$ phase\t    
am\nt "u section #cb7;b7 = a m>ri$ c\ple
 fil+ a jo9t return ) #c or m qualify+  
*ildr51 z det]m9$ 9 a rev5ue proc$ure or
 o!r publi%$ guidance4  7#d7 ,und]s]v$  
population ,! t]m und]s]v$ population   
includes populations ( p]sons )         

disabilities1 p]sons ) limit$ ,engli%   
pr(ici5cy1 ,native ,am]icans1           
individuals liv+ 9 rural areas1 memb]s (
 ! ,arm$ ,=ces & _! sp\ses1 & ! eld]ly4 
7f7 ,special rules & limitations  7#a7  
,duration ( grants ,^u application ( a  
qualifi$ return prep>ation program1 !   
,secret>y is au?oriz$ to aw>d a         
multi-ye> grant n to exce$ #c ye>s4     
7#b7 ,aggregate limitation ,unless      
o!rwise provid$ by specific             
appropriation1 ! ,secret>y %all n       
allocate m ?an #cj1jjj1jjj p] fiscal ye>
 7exclusive ( co/s ( adm9i/]+ ! program7
 to grants "u ?is section4  7g7         
,promotion & ref]ral  7#a7 ,promotion ,!
 ,secret>y %all promote tax prep>ation  
?r\gh qualifi$ return prep>ation        
programs ?r\gh ! use ( mass             
communications1 ref]rals1 & o!r means4  
7#b7 ,int]nal rev5ue s]vice ref]rals ,! 
,secret>y may ref] taxpay]s to qualifi$ 
return prep>ation programs receiv+      
grants "u ?is section4  7#c7 ,vita      
grantee ref]ral ,qualifi$ return        

prep>ation programs receiv+ a grant "u  
?is section are enc\rag$ to ref]1 z     
appropriate1 to local or regional       
,l[-,income ,taxpay] ,cl9ics individuals
 :o are eligible = su* cl9ics4  4  7b7  
,cl]ical am5dm5t ,! table ( sections =  
*apt] #gg is am5d$ by ins]t+ aft] ! item
 relat+ to section #gebf;,a ! foll[+ new
 item3  #gebf;,b4 ,return prep>ation    
programs = l[-income taxpay]s4  4  7c7  
,effective date ,! am5dm5ts made by ?is 
section %all apply ) respect to taxable 
ye>s beg9n+ aft] ! date ( enactm5t ( ?is
 ,act4