,,ii  #aaith ,,congress  #ast ,session  
,s4 #achb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #i1     
#bjbe,mr4 ,banks 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 enhance the  
child tax credit1 and for other         
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,family ,first ,act4
  ,i ,child ,tax ,credit and ,tax       
,credit for ,pregnant ,mothers  #aja4   
,permanent expansion of child tax credit
  7a7 ,in general ,section #bd of the   
,internal ,revenue ,code of #aihf is    
amended-- 7#a7 by striking subsections  
7a7 through 7e7 and inserting the       
following new subsections3  7a7         
,allowance of credit  7#a7 ,in general  
,there shall be allowed as a credit     
against the tax imposed by this chapter 
for the taxable year an amount equal to 
the applicable percentage of the base   
credit amount4  7#b7 ,base credit amount

 ,for purposes of paragraph 7#a71 the   
base credit amount shall be an amount   
equal to the sum of-- 7,a7 for each     
qualifying child who has not attained   
age #f as of the close of the calendar  
year in which the taxable year of the   
taxpayer begins1 #d1bjj1 and  7,b7 for  
each qualifying child of the taxpayer   
who is not described in subparagraph    
7,a71 #c1jjj4  7b7 ,applicable          
percentage and limitation based on      
adjusted gross income  7#a7 ,applicable 
percentage ,for purposes of subsection  
7a71 the applicable percentage shall    
be-- 7,a7 in the case of a taxpayer     
whose modified adjusted gross income is 
equal to or greater than #bj1jjj1 #ajj  
percent1 or  7,b7 in the case of a      
taxpayer whose modified adjusted gross  
income is less than #bj1jjj1 an amount  
7expressed as a percentage7 equal to the
 quotient of-- 7i7 the modified adjusted
 gross income of the taxpayer1 divided  
by  7ii7 #bj1jjj4  7#b7 ,limitation ,the
 amount of the credit allowable under   

subsection 7a7 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-- 7,a7 in the case of a  
joint return1 #djj1jjj1 or  7,b7 in any 
other case1 #bjj1jjj4  7#c7 ,modified   
adjusted gross income ,for purposes of  
this subsection1 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#d7 ,adjustment 
for inflation  7,a7 ,in general ,in the 
case of a taxable year beginning after  
#bjbf1 each of the #bj1jjj amounts in   
paragraph 7#a7 shall be increased by an 
amount equal to-- 7i7 #bj1jjj1          
multiplied by  7ii7 the cost-of-living  
adjustment determined under section     
#a7;f77#c7 for the calendar year in     
which the taxable year begins1          
determined by substituting #bjbe for    
#bjaf in subparagraph 7,a77ii7 thereof4 
7,b7 ,rounding ,if any increase under   

this paragraph is not a multiple of     
#ajj1 such increase shall be rounded to 
the next lowest multiple of #ajj4  7c7  
,qualifying child ,for purposes of this 
section-- 7#a7 ,in general ,the term    
qualifying child means a qualifying     
child of the taxpayer 7as defined in    
section #aeb7;c77 who has not attained  
age #ag as of the close of the calendar 
year in which the taxable year of the   
taxpayer begins4  7#b7 ,exception for   
certain noncitizens ,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 ,limitation on    
number of children ,the number of       
qualifying children of a taxpayer for   
which a credit may be allowed under this
 section for any taxable year shall not 
exceed #f4  7e7 ,identification         
requirements  7#a7 ,in general ,no      
credit shall be allowed under this      

section to a taxpayer who does not      
include on the return of tax for the    
taxable year-- 7,a7 the social security 
number of the taxpayer 7and1 in the case
 of a joint return1 the social security 
number of at least #a spouse71 and  7,b7
 with respect to any qualifying child1  
the name and the social security number 
of such qualifying child4  7#b7 ,social 
security number defined ,for purposes of
 this subsection1 the term social       
security number means1 with respect to a
 return of tax1 a social security number
 issued to an individual by the ,social 
,security ,administration1 but only if  
the social security number is issued--  
7,a7 to a citizen of the ,united ,states
 or pursuant to subclause 7,i7 7or that 
portion of subclause 7,,iii7 that       
relates to subclause 7,i77 of section   
#bje7;c77#b77;,b77i7 of the ,social     
,security ,act1 and  7,b7 before the due
 date of filing such return4  1  7#b7 by
 striking subsections 7h7 through 7j71  
7#c7 in subsection 7k7-- 7,a7 by        

striking paragraph 7#b7 and inserting   
the following3  7#b7 ,puerto ,rico ,in  
the case of any bona fide resident of   
,puerto ,rico 7within the meaning of    
section #icg7;a771 the credit determined
 under this section shall be allowable  
to such resident4  1 and  7,b7 in       
paragraph 7#c7-- 7i7 in subparagraph    
7,a71 by striking and without regard to 
the application of this section to bona 
fide residents of ,puerto ,rico under   
subsection 7i77#a71 and  7ii7 in        
subparagraph 7,c71 by striking clause   
7ii7 and inserting the following3  7ii7 
,application of section in event of     
absence of approved plan ,in the case of
 a taxable year with respect to which a 
plan is not approved under subparagraph 
7,b71 rules similar to the rules of     
paragraph 7#b7 shall apply with respect 
to bona fide residents of ,american     
,samoa 7within the meaning of section   
#icg7;a774  1 and  7#d7 by redesignating
 subsection 7k7 7as amended by paragraph
 7#c77 as subsection 7h74  7b7          

,treatment as fully refundable  7#a7    
,credit moved to subpart relating to    
refundable credits  7,a7 ,in general    
,the ,internal ,revenue ,code of #aihf  
is amended-- 7i7 by redesignating       
section #bd1 as amended by this section1
 as section #cf;,c1 and  7ii7 by moving 
such section1 as so redesignated1 from  
subpart ,a of part ,,iv of subchapter ,a
 of chapter #a to the location          
immediately after section #cf;,b in     
subpart ,c of part ,,iv of subchapter ,a
 of chapter #a4  7,b7 ,technical        
amendment ,subsection 7a7 of section    
#cf;,c of such ,code1 as moved and      
redesignated by subparagraph 7,a71 is   
amended by striking this chapter and    
inserting this subtitle4  7,c7 ,clerical
 amendments  7i7 ,the table of sections 
for subpart ,a of part ,,iv of          
subchapter ,a of chapter #a of such     
,code is amended by striking the item   
relating to section #bd4  7ii7 ,the     
table of sections for subpart ,c of part
 ,,iv of subchapter ,a of chapter #a of 

such ,code is amended by adding at the  
end the following new item3  ,sec4      
#cf;,c4 ,child tax credit4  4  7#b7     
,conforming amendments  7,a7 ,section   
#bf7;b77#b7 of such ,code is amended--  
7i7 by striking 1 and at the end of     
subparagraph 7,y7 and inserting a       
period1  7ii7 by inserting and at the   
end of subparagraph 7,x71 and  7iii7 by 
striking subparagraph 7,z74  7,b7       
,section #de,r7f77#c77;,b7 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,c7 ,section #dh;,d7d77#d7 of such  
,code is amended by striking section    
#bd7k7 and inserting section #cf;,c7h74 
7,d7 ,section #aeb7;f77#f77;,b77ii7 of  
such ,code is amended by striking       

section #bd and inserting section       
#cf;,c4  7,e7 ,section #eja7;c77#bf7 of 
such ,code is amended in the flush      
matter at the end by striking section   
#bd7;c77 and inserting section          
#cf;,c7c774  7,f7 ,section              
#cdjb7;f77#a77;,c7 of such ,code is     
amended by striking section #bd         
7determined after application of        
subsection 7j7 thereof7 and inserting   
section #cf;,c4  7,g7 ,section          
#fajc7l77#ac77;,a77v7 of such ,code is  
amended by striking section #bd and     
inserting section #cf;,c4  7,h7 ,section
 #fbaa7;b77#d77;,a7 of such ,code is    
amended-- 7i7 by striking #bd by reason 
of subsections 7d7 and 7i77#a7 thereof11
  7ii7 by inserting and #cf;,c after    
#cf;,b11 and  7iii7 by striking 1 #fdbh1
 #fdbh;,a1 #fdbh;,b1 and #gebg;,a4  7,i7
 ,section #fbac7;g77#b7 of such ,code is
 amended-- 7i7 in subparagraph 7,i71 by 
striking correct ,,tin required under   
section #bd7;e7 and inserting correct   
social security number required under   

section #cf;,c7e71  7ii7 in subparagraph
 7,l7-- 7,i7 by striking #bd1 or #cb and
 inserting #cb1 or #cf;,c1 and  7,,ii7  
by striking ,,tin each place it appears 
and inserting ,,tin or social security  
number1 and  7iii7 in subparagraph      
7,p7-- 7,i7 by striking #bd7;g77#b7 and 
inserting #cf;,c7g77#b71 and  7,,ii7 by 
striking section #bd and inserting      
section #cf;,c4  7,j7 ,section #fdjb7m7 
of such ,code is amended by striking    
section #bd 7by reason of subsection 7d7
 thereof7 or #cb and inserting section  
#cb or #cf;,c4  7,k7 ,section #fdag7;f7 
of such ,code is amended by striking    
section #bd7k7 and inserting section    
#cf;,c7h74  7,l7 ,section #ffie7;g77#b7 
of such ,code is amended by striking    
#bd1 #be;,a7a77#a71 or #cb and inserting
 #be;,a7a77#a71 #cb1 or #cf;,c4  7,m7   
,section #acbd7;b77#b7 of title #ca1    
,united ,states ,code1 is amended-- 7i7 
by striking #bd11 and  7ii7 by inserting
 #cf;,c1 after #cf;,b14  7,n7 ,section  
#afac7;a77#aa77;,a7 of the ,social      

,security ,act 7#db ,u4,s4,c4           
#achb;b7a77#aa77;,a77 is amended by     
striking section #bd of the ,internal   
,revenue ,code of #aihf 7relating to    
child tax credit7 by reason of          
subsection 7d7 thereof and inserting    
section #cf;,c of the ,internal ,revenue
 ,code of #aihf 7relating to child tax  
credit74  7,o7 ,chapter #gg of such     
,code is amended by striking section    
#gebg;,a 7and the item relating to such 
section in the table of sections for    
such chapter74  7c7 ,effective date ,the
 amendments made by this section shall  
apply to taxable years beginning after  
,december #ca1 #bjbe4  #ajb4 ,tax credit
 for pregnant mothers  7a7 ,in general  
,subpart ,c of part ,,iv of subchapter  
,a of chapter #a of the ,internal       
,revenue ,code of #aihf is amended by   
inserting after section #cf;,c 7as      
redesignated by section #aja7 the       
following new section3  #cf;,d4 ,credit 
for pregnant mothers  7a7 ,allowance of 
credit ,in the case of an eligible      

taxpayer with a qualifying unborn child1
 there shall be allowed as a credit     
against the tax imposed by this chapter 
for the taxable year an amount equal to 
the applicable percentage of #b1hjj4    
7b7 ,applicable percentage  7#a7 ,in    
general ,for purposes of subsection 7a71
 the applicable percentage shall be--   
7,a7 in the case of a taxpayer whose    
modified adjusted gross income is equal 
to or greater than #aj1jjj1 #ajj        
percent1 or  7,b7 in the case of a      
taxpayer whose modified adjusted gross  
income is less than #aj1jjj1 the amount 
7expressed as a percentage7 equal to the
 quotient of-- 7i7 the modified adjusted
 gross income of the taxpayer1 divided  
by  7ii7 #aj1jjj4  7#b7 ,limitation ,the
 amount of the credit allowable under   
subsection 7a7 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-- 7,a7 in the case of a  
joint return1 #djj1jjj1 or  7,b7 in any 

other case1 #bjj1jjj4  7#c7 ,modified   
adjusted gross income ,for purposes of  
this subsection1 the term modified      
adjusted gross income has the same      
meaning given such term in section      
#cf;,c7b77#c74  7#d7 ,adjustment for    
inflation  7,a7 ,in general ,in the case
 of a taxable year beginning after      
#bjbf1 each of the #aj1jjj amounts in   
paragraph 7#a7 shall be increased by an 
amount equal to-- 7i7 #aj1jjj1          
multiplied by  7ii7 the cost-of-living  
adjustment determined under section     
#a7;f77#c7 for the calendar year in     
which the taxable year begins1          
determined by substituting #bjbe for    
#bjaf in subparagraph 7,a77ii7 thereof4 
7,b7 ,rounding ,if any increase under   
this paragraph is not a multiple of     
#ajj1 such increase shall be rounded to 
the next lowest multiple of #ajj4  7c7  
,qualifying unborn child  7#a7 ,in      
general ,for purposes of this section1  
the term qualifying unborn child means  
an unborn child whose gestational age is

 #bj weeks or greater1 as certified by a
 physician in accordance with paragraph 
7#b74  7#b7 ,certification  7,a7 ,in    
general ,upon the request of the mother1
 a physician may make a determination   
with respect to the gestational age of  
the unborn child4 ,any determination    
made under this paragraph shall be based
 on the reasonable medical judgment of  
the physician following such inquiries1 
examinations1 and tests as a reasonably 
prudent physician would deem necessary  
for purposes of making such             
determination4  7,b7 ,form ,if the      
physician has made a determination      
pursuant to subparagraph 7,a7 that the  
gestational age of the unborn child is  
#bj weeks or greater1 such physician    
may1 upon the request of the mother1    
provide the mother with a form which    
includes the following3 7i7 ,the        
gestational age and the expected due    
date of the unborn child4  7ii7 ,the    
name and social security number of the  
mother4  7iii7 ,if applicable1 the name 

and social security number of the spouse
 of such mother4  7iv7 ,the name and    
contact information of the physician4   
7v7 ,a written certification from such  
physician stating1 under penalty of     
perjury pursuant to section #agdf of    
title #bh1 that-- 7,i7 the mother was   
determined to have been pregnant with   
the unborn child1 according to standard 
medical practice1 by such physician1 and
  7,,ii7 such physician has determined  
that1 in their reasonable medical       
judgment1 the gestational age of the    
unborn child is #bj weeks or greater4   
7vi7 ,a written certification from the  
mother of the unborn child stating1     
under penalty of perjury pursuant to    
section #agdf of title #bh1 ,united     
,states ,code1 that she-- 7,i7 is the   
biological mother of such unborn child1 
or  7,,ii7 initiated the pregnancy with 
the intention of bearing and retaining  
custody of and parental rights to such  
child 7or acted to such effect74  7,c7  
,prohibition ,notwithstanding any other 

provision of law1 the certification     
described in this paragraph shall not be
 used for any purpose other than to     
determine the eligibility of the        
taxpayer for the credit allowed under   
this section4  7d7 ,application  7#a7   
,in general ,in the case of the         
involuntary death of an unborn child1 or
 the death of an unborn child as a      
result of any treatment intended to save
 the life of the mother or any treatment
 of an ectopic pregnancy1 occurring     
after #bj weeks gestation1 the death of 
such child shall have no effect with    
respect to whether the credit is allowed
 under this section to an eligible      
taxpayer1 provided that such taxpayer   
otherwise satisfies the applicable      
requirements under this section4  7#b7  
,more than #a unborn child during the   
same taxable year ,in the case of an    
eligible taxpayer who-- 7,a7 has more   
than #a pregnancy during a taxable year1
 or  7,b7 is determined to be pregnant  
with more than #a qualifying unborn     

child1  the credit under this section   
shall be allowed with respect to each   
qualifying unborn child4  7#c7          
,interaction with child tax credit ,the 
allowance of a credit under this section
 with respect to a qualifying unborn    
child shall have no effect in regards to
 the application of section #cf;,c with 
respect to such child after the date of 
their birth4  7e7 ,prohibition ,no      
credit shall be allowed under this      
section if an unborn child died as a    
result of an induced abortion1 but not  
including any treatment intended to save
 the life of the mother or any treatment
 of an ectopic pregnancy4  7f7          
,definitions ,in this section-- 7#a7    
,eligible taxpayer ,the term eligible   
taxpayer means a taxpayer who-- 7,a7    
with respect to an unborn child1 is the 
mother who-- 7i7 carries or carried such
 child in the womb1 and  7ii7 is the    
biological mother of such child or      
initiated the pregnancy with the        
intention of bearing and retaining      

custody of and parental rights to such  
child 7or acted to such effect71 or     
7,b7 in the case of a joint return1 is  
the spouse of such mother1  but only if 
such taxpayer includes on the return of 
tax for the taxable year the social     
security number of such taxpayer 7of at 
least #a of such mother or spouse1 in   
the case of a joint return74  7#b7      
,gestational age ,the term gestational  
age means the age of the unborn child1  
as calculated from the first day of the 
mother's last menstrual period4  7#c7   
,physician ,the term physician means an 
individual who is-- 7,a7 licensed to    
practice-- 7i7 medicine and surgery1    
7ii7 osteopathic medicine and surgery1  
or  7iii7 midwifery1 or  7,b7 otherwise 
legally authorized to-- 7i7 perform     
births and to diagnose and attend       
miscarriages or stillbirths1 and  7ii7  
perform examinations to determine the   
gestational age of an unborn child1  by 
the ,state in which such practice is    
performed4  7#d7 ,reasonable medical    

judgment ,the term reasonable medical   
judgment means a medical judgment that  
would be made by a reasonably prudent   
physician who is knowledgeable about the
 case and the treatment possibilities   
with respect to the medical conditions  
involved4  7#e7 ,social security number 
,the term social security number has the
 meaning given such term by section     
#cf;,c7e77#b74  4  7b7 ,clerical        
amendment ,the table of sections for    
subpart ,c of part ,,iv of subchapter ,a
 of chapter #a of the ,internal ,revenue
 ,code of #aihf is amended by inserting 
after the item relating to section      
#cf;,c the following new item3  ,sec4   
#cf;,d4 ,credit for pregnant mothers4  4
  7c7 ,effective date ,the amendments   
made by this section shall apply to     
taxable years beginning after ,december 
#ca1 #bjbe4  ,,ii ,other amendments to  
the ,internal ,revenue ,code of #aihf   
#bja4 ,simplification of earned income  
credit for taxpayers with children  7a7 
,additional limitation ,section         

#cb7;a77#b7 of the ,internal ,revenue   
,code of #aihf is amended to read as    
follows3  7#b7 ,limitation ,the amount  
of the credit allowable to a taxpayer   
under paragraph 7#a7 for any taxable    
year shall not exceed the lesser of--   
7,a7 the excess 7if any7 of-- 7i7 the   
credit percentage of the earned income  
amount1 over  7ii7 the phaseout         
percentage of so much of the adjusted   
gross income 7or1 if greater1 the earned
 income7 of the taxpayer for the taxable
 year as exceeds the phaseout amount1 or
  7,b7 an amount equal to-- 7i7 in the  
case of any taxpayer with no qualifying 
children-- 7,i7 who is not filing a     
joint return1 #gjj1 or  7,,ii7 who is   
filing a joint return1 #a1djj1 or  7ii7 
in the case of any taxpayer with #a or  
more qualifying children-- 7,i7 who is  
not filing a joint return1 #d1cjj1 or   
7,,ii7 who is filing a joint return1    
#e1jjj4  4  7b7 ,credit percentage and  
phaseout percentage ,the table contained
 in section #cb7;b77#a7 of the ,internal

 ,revenue ,code of #aihf is amended--   
7#a7 by striking #a qualifying child in 
the first row and inserting #a or more  
qualifying children1  7#b7 by striking  
#ae4ih in the first row and inserting   
#be1  7#c7 by striking the second and   
third rows1 and  7#d7 by striking #g4fe 
in the third column of the last row and 
inserting #aj4  7c7 ,earned income and  
phaseout amounts ,the table contained in
 section #cb7;b77#b77;,a7 of the        
,internal ,revenue ,code of #aihf is    
amended-- 7#a7 by striking #a qualifying
 child in the first row and inserting #a
 or more qualifying children1  7#b7 by  
striking #f1ccj in the first row and    
inserting #ab1fdg1  7#c7 by striking    
#aa1faj in the first row and inserting  
#cc1jjj1  7#d7 by striking the second   
row1  7#e7 by striking #d1bbj in the    
last row and inserting #i1aej1 and  7#f7
 by striking #e1bhj in the last row and 
inserting #aj1jjj4  7d7 ,joint returns  
,section #cb7;b77#b77;,b7 of the        
,internal ,revenue ,code of #aihf is    

amended by striking #e1jjj and inserting
 8#aj1jjj1 and the earned income amount 
determined under subparagraph 7,a7 shall
 be increased--  7i7 by #b1jei1 in the  
case of a taxpayer with #a or more      
qualifying children1 and  7ii7 by       
#i1aea1 in the case of a taxpayer with  
no qualifying children4  4  7e7         
,inflation adjustment ,section          
#cb7;j77#a7 of the ,internal ,revenue   
,code of #aihf is amended-- 7#a7 by     
striking #bjae and inserting #bjbf1     
7#b7 by striking clauses 7i7 and 7ii7 of
 subparagraph 7,b7 thereof and          
redesignating clause 7iii7 of such      
subparagraph as clause 7ii71 and  7#c7  
by inserting before clause 7ii7 of      
subparagraph 7,b7 thereof1 as so        
redesignated1 the following new clause3 
7i7 in the case of amounts in subsection
 7b77#b71 calendar year #bjbe for       
calendar year #bjaf1 and  4  7f7        
,effective date  7#a7 ,in general       
,subject to paragraph 7#b71 the         
amendments made by this section shall   

apply to taxable years beginning after  
,december #ca1 #bjbe4  7#b7             
,nonapplication to exempted children    
7,a7 ,in general ,subject to            
subparagraph 7,b71 in the case of any   
eligible individual 7as defined in      
section #cb7;c77#a7 of the ,internal    
,revenue ,code of #aihf7 who has any    
qualifying children for the taxable year
 who are exempted children1 section #cb 
of the ,internal ,revenue ,code of #aihf
 shall be applied with respect to such  
eligible individual as if the amendments
 made by subsections 7a7 through 7e7 of 
this section had not been enacted4  7,b7
 ,separate application ,in the case of  
any eligible individual 7as so defined7 
who has-- 7i7 any qualifying children   
for the taxable year who are not        
exempted children1 and  7ii7 any        
qualifying children for such taxable    
year who are exempted children1  section
 #cb of the ,internal ,revenue ,code of 
#aihf shall be applied separately with  
respect to the children described in    

clause 7i7 and 7pursuant to the rules   
described in subparagraph 7,a77 the     
children described in clause 7ii74  7,c7
 ,exempted child ,for purposes of this  
paragraph1 the term exempted child means
 an individual who is described in      
subparagraph 7,a77ii7 or 7,b7 of section
 #aeb7;c77#c74  #bjb4 ,elimination of   
additional exemption for dependents  7a7
 ,in general ,section #aea7;d77#e7 of   
the ,internal ,revenue ,code of #aihf is
 amended to read as follows3  7#e7      
,elimination of additional exemption for
 dependents for taxable years after     
#bjbe ,in the case of a taxable year    
beginning after ,december #ca1 #bjbe--  
7,a7 ,in general ,for purposes of       
subsection 7c71 the term exemption      
amount means zero4  7,b7 ,references    
,for purposes of any other provision of 
this title1 the reduction of the        
exemption amount to zero under          
subparagraph 7,a7 shall not be taken    
into account in determining whether a   
deduction is allowed or allowable1 or   

whether a taxpayer is entitled to a     
deduction1 under this section4  4  7b7  
,effective date ,the amendment made by  
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjbe4  #bjc4 ,elimination of head of   
household filing status  7a7 ,in general
 ,section #a of the ,internal ,revenue  
,code of #aihf is amended-- 7#a7 by     
striking subsection 7b71  7#b7 in       
subsection 7c7-- 7,a7 in the heading1 by
 striking and heads of households1 and  
7,b7 by striking or the head of a       
household as defined in section #b7;b71 
7#c7 in subsection 7f71 by striking 7b71
 each place it appears1  7#d7 in        
subsection 7i7-- 7,a7 in paragraph      
7#a7-- 7i7 in subparagraph 7,a77i71 by  
striking 7b711  7ii7 in subparagraph    
7,b7-- 7,i7 in clause 7i71 by adding and
 at the end1  7,,ii7 by striking clause 
7ii71 and  7,,iii7 by redesignating     
clause 7iii7 as clause 7ii71 and  7iii7 
in subparagraph 7,c71 by striking       
subparagraph 7,b77iii7 and inserting    

subparagraph 7,b77ii71  7,b7 in         
paragraph 7#b71 by striking 7b711 and   
7,c7 in paragraph 7#c7-- 7i7 in         
subparagraph 7,a71 by striking 7b711    
7ii7 in subparagraph 7,b7-- 7,i7 by     
striking clause 7ii71 and  7,,ii7 by    
redesignating clauses 7iii7 and 7iv7 as 
clauses 7ii7 and 7iii71 respectively1   
and  7iii7 in subparagraph 7,c71 by     
striking clauses 7i71 7ii71 and 7iii7   
and inserting clauses 7i7 and 7ii71 and 
7#e7 in subsection 7j7-- 7,a7 in        
paragraph 7#b7-- 7i7 by striking        
subparagraph 7,b71 and  7ii7 in         
subparagraph 7,c71 by striking and heads
 of households in the heading1  7,b7 in 
paragraph 7#c77;,b77ii71 by striking or 
head of household1 and  7,c7 in         
paragraph 7#e77;,b7-- 7i7 in clause     
7i7-- 7,i7 by striking subclause 7,,ii71
 and  7,,ii7 by redesignating subclauses
 7,,iii7 and 7,,iv7 as subclauses 7,,ii7
 and 7,,iii71 respectively1 and  7ii7 in
 clause 7ii7-- 7,i7 by striking         
subclause 7,,ii71 and  7,,ii7 by        

redesignating subclauses 7,,iii7 and    
7,,iv7 as subclauses 7,,ii7 and 7,,iii71
 respectively4  7b7 ,conforming         
amendments  7#a7 ,section #be;,b7b77#b7 
of the ,internal ,revenue ,code of #aihf
 is amended to read as follows3  7#b7   
,other returns ,in the case of any      
taxpayer not described in paragraph     
7#a71 the applicable percentage shall be
 determined under paragraph 7#a7 except 
that such paragraph shall be applied by 
substituting for each dollar amount     
therein 7as adjusted under paragraph    
7#c77 a dollar amount equal to #ej      
percent of such dollar amount4  4  7#b7 
,section #be;,e7b77#b7 of such ,code is 
amended-- 7,a7 in subparagraph 7,a71 by 
adding and at the end1 and  7,b7 by     
striking subparagraphs 7,b7 and 7,c7 and
 inserting the following3  7,b7 in the  
case of a taxpayer not described in     
subparagraph 7,a71 #ge1jjj4  4  7#c7    
,section #cj;,d7f77#aj77;,b7 of such    
,code is amended-- 7,a7 in clause 7i71  
by adding and at the end1 and  7,b7 by  

striking clauses 7ii7 and 7iii7 and     
inserting the following3  7ii7 in the   
case of a taxpayer not described in     
clause 7i71 #aej1jjj4  4  7#d7 ,section 
#cf;,b7b77#c77;,b77ii77,i77aa7 of such  
,code is amended by striking and heads  
of households4  7#e7 ,section #fc7;c7 of
 such ,code is amended-- 7,a7 in        
paragraph 7#b7-- 7i7 in subparagraph    
7,a77ii71 by adding or at the end1  7ii7
 by striking subparagraph 7,b71 and     
7iii7 by redesignating subparagraph 7,c7
 as subparagraph 7,b71  7,b7 in         
paragraph 7#d71 by striking 1 7#b77;,c71
 each place it appears1 and  7,c7 in    
paragraph 7#g7-- 7i7 by striking        
subparagraph 7,a7 and inserting the     
following3  7,a7 ,increase in standard  
deduction ,paragraph 7#b77;,b7 shall be 
applied by substituting #ab1jjj for     
#c1jjj4  1 and  7ii7 in subparagraph    
7,b7-- 7,i7 in clause 7i71 by striking  
paragraphs 7#b77;,b7 and 7#b77;,c7 and  
inserting paragraph 7#b77;,b71 and      
7,,ii7 in clause 7ii71 by striking      

#ah1jjj and #ab1jjj amounts and         
inserting #ab1jjj amount4  7#f7 ,section
 #fh7;b7 of such ,code is amended-- 7,a7
 in paragraph 7#a7-- 7i7 by striking    
subparagraph 7,b71  7ii7 in subparagraph
 7,c71 by striking or head of household1
 and  7iii7 by redesignating            
subparagraphs 7,c7 and 7,d7 as          
subparagraphs 7,b7 and 7,c71            
respectively1 and  7,b7 in paragraph    
7#b71 by striking subparagraphs 7,a71   
7,b71 and 7,c7 and inserting            
subparagraphs 7,a7 and 7,b74  7#g7      
,section #ijd7;b77#c77;,e77i77,i7 of    
such ,code is amended by striking 7b714 
7#h7 ,section #fjab7;a77#a7 of such     
,code is amended-- 7,a7 in subparagraph 
7,a7-- 7i7 in clause 7i71 by striking is
 not a head of a household 7as defined  
in section #b7;b7711  7ii7 by striking  
clause 7ii71  7iii7 by redesignating    
clauses 7iii7 and 7iv7 as clauses 7ii7  
and 7iii71 respectively1 and  7iv7 in   
the flush text at the end1 by striking  
,clause 7iv7 and inserting ,clause      

7iii71 and  7,b7 in subparagraph 7,b7-- 
7i7 by striking clause 7i71 7ii71 or    
7iii7 and inserting clause 7i7 or 7ii71 
and  7ii7 by striking clause 7iv7 and   
inserting clause 7iii74  7#i7 ,section  
#fdcc7;b77#c77;,b7 of such ,code is     
amended to read as follows3  7,b7 ,other
 returns ,in the case of any taxpayer   
who is not filing a joint return and who
 is not a surviving spouse 7as defined  
in section #b7;a771 the applicable      
dollar amount and the phaseout range    
shall be  of the amounts applicable     
under subparagraph 7,a7 7as so          
adjusted74  4  7#aj7 ,section #ffie7;g7 
of such ,code is amended to read as     
follows3  7g7 ,failure ,to be diligent  
in determining eligibility for certain  
tax benefits ,any person who is a tax   
return preparer with respect to any     
return or claim for refund who fails to 
comply with due diligence requirements  
imposed by the ,secretary by regulations
 with respect to determining eligibility
 for1 or the amount of1 the credit      

allowable by section #be;,a7a77#a71 #cb1
 or #cf;,c shall pay a penalty of #ejj  
for each such failure4  4  7c7          
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjbe4  #bjd4 ,exclusion of children    
from credit for expenses for household  
and dependent care services necessary   
for gainful employment  7a7 ,in general 
,section #ba of the ,internal ,revenue  
,code of #aihf is amended-- 7#a7 in     
subsection 7b7-- 7,a7 in paragraph      
7#a7-- 7i7 by striking subparagraph     
7,a71  7ii7 in subparagraph 7,b71 by    
inserting who has attained age #ag and  
before who is physically or mentally    
incapable1 and  7iii7 by redesignating  
subparagraphs 7,b7 and 7,c7 as          
subparagraphs 7,a7 and 7,b71            
respectively1 and  7,b7 in paragraph    
7#b71 by striking subparagraph 7,b7 and 
inserting the following3  7,b7          
,exception ,employment-related expenses 
described in subparagraph 7,a7 which are

 incurred for services outside the      
taxpayer's household shall be taken into
 account only if incurred for the care  
of a qualifying individual who regularly
 spends at least #h hours each day in   
the taxpayer's household4  1  7#b7 in   
subsection 7d77#b71 by striking         
subsection 7b77#a77;,c7 and inserting   
subsection 7b77#a77;,b71 and  7#c7 in   
subsection 7e77#e7-- 7,a7 in            
subparagraph 7,b71 by striking is under 
the age of #ac or and inserting has     
attained age #ag and1 and  7,b7 in the  
flush text at the end1 by striking      
subparagraph 7,a7 or 7,b7 of subsection 
7b77#a7 7whichever is appropriate7 and  
inserting subsection 7b77#a77;,a74  7b7 
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjbe4  #bje4 ,denial of deduction for  
,state and local taxes of individuals   
7a7 ,in general ,section #afd7;b77#f7 of
 the ,internal ,revenue ,code of #aihf  
is amended to read as follows3  7#f7    

,limitation on deduction of certain     
taxes for individuals  7,a7 ,in general 
,in the case of an individual1 no       
deduction shall be allowed for taxes--  
7i7 described in paragraphs 7#a71 7#b71 
or 7#c7 of subsection 7a71 or  7ii7     
described in paragraph 7#e7 of this     
subsection4  7,b7 ,exceptions           
,subparagraph 7,a7 shall not apply to-- 
7i7 any foreign taxes described in      
subsection 7a77#c71 or  7ii7 any taxes  
described in paragraph 7#a7 and 7#b7 of 
subsection 7a7 which are paid or accrued
 in carrying on a trade or business or  
an activity described in section #bab4  
7,c7 ,special rule ,for purposes of     
subparagraph 7,a71 an amount paid in a  
taxable year beginning before ,january  
#a1 #bjbf1 with respect to a ,state or  
local income tax imposed for a taxable  
year beginning after ,december #ca1     
#bjbe1 shall be treated as paid on the  
last day of the taxable year for which  
such tax is so imposed4  4  7b7         
,effective date ,the amendment made by  

this section shall apply to taxable     
years beginning after ,december #ca1    
#bjbe4