,,ii  #aai? ,,congress  #a/ ,session    
,s4 #achb  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #i1 #bjbe,mr4   
,banks introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to enhance ! *ild 
tax cr$it1 & = o!r purposes4  #a4 ,%ort 
title ,?is ,act may be cit$ z ! ,family 
,fir/ ,act4  ,i ,*ild ,tax ,cr$it & ,tax
 ,cr$it = ,pregnant ,mo!rs  #aja4       
,p]man5t expansion ( *ild tax cr$it  7a7
 ,9 g5]al ,section #bd ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$-- 7#a7 by
 /rik+ subsections 7a7 ?r\gh 7e7 &      
ins]t+ ! foll[+ new subsections3  7a7   
,all[ance ( cr$it  7#a7 ,9 g5]al ,!re   
%all be all[$ z a cr$it aga9/ ! tax     
impos$ by ?is *apt] = ! taxable ye> an  
am\nt equal to ! applicable p]c5tage ( !
 base cr$it am\nt4  7#b7 ,base cr$it    
am\nt ,= purposes ( p>agraph 7#a71 !    
base cr$it am\nt %all be an am\nt equal 
to ! sum (-- 7,a7 = ea* qualify+ *ild :o
 has n atta9$ age #f z ( ! close ( !    

cal5d> ye> 9 :i* ! taxable ye> ( !      
taxpay] beg9s1 #d1bjj1 &  7,b7 = ea*    
qualify+ *ild ( ! taxpay] :o is n       
describ$ 9 subp>agraph 7,a71 #c1jjj4    
7b7 ,applicable p]c5tage & limitation   
bas$ on adju/$ gross income  7#a7       
,applicable p]c5tage ,= purposes (      
subsection 7a71 ! applicable p]c5tage   
%all be-- 7,a7 9 ! case ( a taxpay] ^:  
modifi$ adju/$ gross income is equal to 
or great] ?an #bj1jjj1 #ajj p]c5t1 or   
7,b7 9 ! case ( a taxpay] ^: modifi$    
adju/$ gross income is less ?an #bj1jjj1
 an am\nt 7express$ z a p]c5tage7 equal 
to ! quoti5t (-- 7i7 ! modifi$ adju/$   
gross income ( ! taxpay]1 divid$ by     
7ii7 #bj1jjj4  7#b7 ,limitation ,! am\nt
 ( ! cr$it all[able "u subsection 7a7   
%all be r$uc$ 7b n bel[ z]o7 by #ej =   
ea* #a1jjj 7or fraction !re(7 by :i* !  
taxpay]'s modifi$ adju/$ gross income   
exce$s-- 7,a7 9 ! case ( a jo9t return1 
#djj1jjj1 or  7,b7 9 any o!r case1      
#bjj1jjj4  7#c7 ,modifi$ adju/$ gross   
income ,= purposes ( ?is subsection1 !  

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#d7 ,adju/m5t =  
inflation  7,a7 ,9 g5]al ,9 ! case ( a  
taxable ye> beg9n+ aft] #bjbf1 ea* ( !  
#bj1jjj am\nts 9 p>agraph 7#a7 %all be  
increas$ by an am\nt equal to-- 7i7     
#bj1jjj1 multipli$ by  7ii7 ! co/-(-liv+
 adju/m5t det]m9$ "u section #a7;f77#c7 
= ! cal5d> ye> 9 :i* ! taxable ye>      
beg9s1 det]m9$ by sub/itut+ #bjbe =     
#bjaf 9 subp>agraph 7,a77ii7 !re(4  7,b7
 ,r\nd+ ,if any increase "u ?is p>agraph
 is n a multiple ( #ajj1 su* increase   
%all be r\nd$ to ! next l[e/ multiple ( 
#ajj4  7c7 ,qualify+ *ild ,= purposes ( 
?is section-- 7#a7 ,9 g5]al ,! t]m      
qualify+ *ild means a qualify+ *ild ( ! 
taxpay] 7z def9$ 9 section #aeb7;c77 :o 
has n atta9$ age #ag z ( ! close ( !    
cal5d> ye> 9 :i* ! taxable ye> ( !      
taxpay] beg9s4  7#b7 ,exception = c]ta9 
noncitiz5s ,! 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 
,limitation on numb] ( *ildr5 ,! numb] (
 qualify+ *ildr5 ( a taxpay] = :i* a    
cr$it may be all[$ "u ?is section = any 
taxable ye> %all n exce$ #f4  7e7       
,id5tification requirem5ts  7#a7 ,9     
g5]al ,no cr$it %all be all[$ "u ?is    
section to a taxpay] :o does n include  
on ! return ( tax = ! taxable ye>-- 7,a7
 ! social security numb] ( ! taxpay] 7&1
 9 ! case ( a jo9t return1 ! social     
security numb] ( at lea/ #a sp\se71 &   
7,b7 ) respect to any qualify+ *ild1 !  
"n & ! social security numb] ( su*      
qualify+ *ild4  7#b7 ,social security   
numb] def9$ ,= purposes ( ?is           
subsection1 ! t]m social security numb] 
means1 ) respect to a return ( tax1 a   
social security numb] issu$ to an       
individual by ! ,social ,security       
,adm9i/ration1 b only if ! social       
security numb] is issu$-- 7,a7 to a     
citiz5 ( ! ,unit$ ,/ates or pursuant to 

subclause 7,i7 7or t portion ( subclause
 7,,iii7 t relates to subclause 7,i77 ( 
section #bje7;c77#b77;,b77i7 ( ! ,social
 ,security ,act1 &  7,b7 be=e ! due date
 ( fil+ su* return4  1  7#b7 by /rik+   
subsections 7h7 ?r\gh 7j71  7#c7 9      
subsection 7k7-- 7,a7 by /rik+ p>agraph 
7#b7 & ins]t+ ! foll[+3  7#b7 ,pu]to    
,rico ,9 ! case ( any bona fide resid5t 
( ,pu]to ,rico 7)9 ! mean+ ( section    
#icg7;a771 ! cr$it det]m9$ "u ?is       
section %all be all[able to su* resid5t4
  1 &  7,b7 9 p>agraph 7#c7-- 7i7 9     
subp>agraph 7,a71 by /rik+ & )\t reg>d  
to ! application ( ?is section to bona  
fide resid5ts ( ,pu]to ,rico "u         
subsection 7i77#a71 &  7ii7 9           
subp>agraph 7,c71 by /rik+ clause 7ii7 &
 ins]t+ ! foll[+3  7ii7 ,application (  
section 9 ev5t ( abs5ce ( approv$ plan  
,9 ! case ( a taxable ye> ) respect to  
:i* a plan is n approv$ "u subp>agraph  
7,b71 rules simil> to ! rules ( p>agraph
 7#b7 %all apply ) respect to bona fide 
resid5ts ( ,am]ican ,samoa 7)9 ! mean+ (

 section #icg7;a774  1 &  7#d7 by       
r$esignat+ subsection 7k7 7z am5d$ by   
p>agraph 7#c77 z subsection 7h74  7b7   
,treatm5t z fully refundable  7#a7      
,cr$it mov$ to subp>t relat+ to         
refundable cr$its  7,a7 ,9 g5]al ,!     
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7i7 by r$esignat+ section #bd1 z
 am5d$ by ?is section1 z section #cf;,c1
 &  7ii7 by mov+ su* section1 z s       
r$esignat$1 f subp>t ,a ( "p ,,iv (     
sub*apt] ,a ( *apt] #a to ! location    
imm$iately aft] section #cf;,b 9 subp>t 
,c ( "p ,,iv ( sub*apt] ,a ( *apt] #a4  
7,b7 ,te*nical am5dm5t ,subsection 7a7 (
 section #cf;,c ( su* ,code1 z mov$ &   
r$esignat$ by subp>agraph 7,a71 is am5d$
 by /rik+ ?is *apt] & ins]t+ ?is        
subtitle4  7,c7 ,cl]ical am5dm5ts  7i7  
,! table ( sections = subp>t ,a ( "p    
,,iv ( sub*apt] ,a ( *apt] #a ( su*     
,code is am5d$ by /rik+ ! item relat+ to
 section #bd4  7ii7 ,! table ( sections 
= subp>t ,c ( "p ,,iv ( sub*apt] ,a (   
*apt] #a ( su* ,code is am5d$ by add+ at

 ! end ! foll[+ new item3  ,sec4 #cf;,c4
 ,*ild tax cr$it4  4  7#b7 ,con=m+      
am5dm5ts  7,a7 ,section #bf7;b77#b7 (   
su* ,code is am5d$-- 7i7 by /rik+ 1 & at
 ! end ( subp>agraph 7,y7 & ins]t+ a    
p]iod1  7ii7 by ins]t+ & at ! end (     
subp>agraph 7,x71 &  7iii7 by /rik+     
subp>agraph 7,z74  7,b7 ,section        
#de,r7f77#c77;,b7 ( 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,c7  
,section #dh;,d7d77#d7 ( su* ,code is   
am5d$ by /rik+ section #bd7k7 & ins]t+  
section #cf;,c7h74  7,d7 ,section       
#aeb7;f77#f77;,b77ii7 ( su* ,code is    
am5d$ by /rik+ section #bd & ins]t+     
section #cf;,c4  7,e7 ,section          
#eja7;c77#bf7 ( su* ,code is am5d$ 9 !  
flu% matt] at ! end by /rik+ section    

#bd7;c77 & ins]t+ section #cf;,c7c774   
7,f7 ,section #cdjb7;f77#a77;,c7 ( su*  
,code is am5d$ by /rik+ section #bd     
7det]m9$ aft] application ( subsection  
7j7 !re(7 & ins]t+ section #cf;,c4  7,g7
 ,section #fajc7l77#ac77;,a77v7 ( su*   
,code is am5d$ by /rik+ section #bd &   
ins]t+ section #cf;,c4  7,h7 ,section   
#fbaa7;b77#d77;,a7 ( su* ,code is       
am5d$-- 7i7 by /rik+ #bd by reason (    
subsections 7d7 & 7i77#a7 !re(11  7ii7  
by ins]t+ & #cf;,c aft] #cf;,b11 &      
7iii7 by /rik+ 1 #fdbh1 #fdbh;,a1       
#fdbh;,b1 & #gebg;,a4  7,i7 ,section    
#fbac7;g77#b7 ( su* ,code is am5d$-- 7i7
 9 subp>agraph 7,i71 by /rik+ correct   
,,t9 requir$ "u section #bd7;e7 & ins]t+
 correct social security numb] requir$  
"u section #cf;,c7e71  7ii7 9           
subp>agraph 7,l7-- 7,i7 by /rik+ #bd1 or
 #cb & ins]t+ #cb1 or #cf;,c1 &  7,,ii7 
by /rik+ ,,t9 ea* place x appe>s &      
ins]t+ ,,t9 or social security numb]1 & 
7iii7 9 subp>agraph 7,p7-- 7,i7 by /rik+
 #bd7;g77#b7 & ins]t+ #cf;,c7g77#b71 &  

7,,ii7 by /rik+ section #bd & ins]t+    
section #cf;,c4  7,j7 ,section #fdjb7m7 
( su* ,code is am5d$ by /rik+ section   
#bd 7by reason ( subsection 7d7 !re(7 or
 #cb & ins]t+ section #cb or #cf;,c4    
7,k7 ,section #fdag7;f7 ( su* ,code is  
am5d$ by /rik+ section #bd7k7 & ins]t+  
section #cf;,c7h74  7,l7 ,section       
#ffie7;g77#b7 ( su* ,code is am5d$ by   
/rik+ #bd1 #be;,a7a77#a71 or #cb &      
ins]t+ #be;,a7a77#a71 #cb1 or #cf;,c4   
7,m7 ,section #acbd7;b77#b7 ( title #ca1
 ,unit$ ,/ates ,code1 is am5d$-- 7i7 by 
/rik+ #bd11 &  7ii7 by ins]t+ #cf;,c1   
aft] #cf;,b14  7,n7 ,section            
#afac7;a77#aa77;,a7 ( ! ,social         
,security ,act 7#db ,u4,s4,c4           
#achb;b7a77#aa77;,a77 is am5d$ by /rik+ 
section #bd ( ! ,int]nal ,rev5ue ,code (
 #aihf 7relat+ to *ild tax cr$it7 by    
reason ( subsection 7d7 !re( & ins]t+   
section #cf;,c ( ! ,int]nal ,rev5ue     
,code ( #aihf 7relat+ to *ild tax       
cr$it74  7,o7 ,*apt] #gg ( su* ,code is 
am5d$ by /rik+ section #gebg;,a 7& !    

item relat+ to su* section 9 ! table (  
sections = su* *apt]74  7c7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjbe4  #ajb4 ,tax cr$it =
 pregnant mo!rs  7a7 ,9 g5]al ,subp>t ,c
 ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #cf;,c 7z        
r$esignat$ by section #aja7 ! foll[+ new
 section3  #cf;,d4 ,cr$it = pregnant    
mo!rs  7a7 ,all[ance ( cr$it ,9 ! case (
 an eligible taxpay] ) a qualify+ unborn
 *ild1 !re %all be all[$ z a cr$it aga9/
 ! tax impos$ by ?is *apt] = ! taxable  
ye> an am\nt equal to ! applicable      
p]c5tage ( #b1hjj4  7b7 ,applicable     
p]c5tage  7#a7 ,9 g5]al ,= purposes (   
subsection 7a71 ! applicable p]c5tage   
%all be-- 7,a7 9 ! case ( a taxpay] ^:  
modifi$ adju/$ gross income is equal to 
or great] ?an #aj1jjj1 #ajj p]c5t1 or   
7,b7 9 ! case ( a taxpay] ^: modifi$    
adju/$ gross income is less ?an #aj1jjj1
 ! am\nt 7express$ z a p]c5tage7 equal  

to ! quoti5t (-- 7i7 ! modifi$ adju/$   
gross income ( ! taxpay]1 divid$ by     
7ii7 #aj1jjj4  7#b7 ,limitation ,! am\nt
 ( ! cr$it all[able "u subsection 7a7   
%all be r$uc$ 7b n bel[ z]o7 by #ej =   
ea* #a1jjj 7or fraction !re(7 by :i* !  
taxpay]'s modifi$ adju/$ gross income   
exce$s-- 7,a7 9 ! case ( a jo9t return1 
#djj1jjj1 or  7,b7 9 any o!r case1      
#bjj1jjj4  7#c7 ,modifi$ adju/$ gross   
income ,= purposes ( ?is subsection1 !  
t]m modifi$ adju/$ gross income has !   
same mean+ giv5 su* t]m 9 section       
#cf;,c7b77#c74  7#d7 ,adju/m5t =        
inflation  7,a7 ,9 g5]al ,9 ! case ( a  
taxable ye> beg9n+ aft] #bjbf1 ea* ( !  
#aj1jjj am\nts 9 p>agraph 7#a7 %all be  
increas$ by an am\nt equal to-- 7i7     
#aj1jjj1 multipli$ by  7ii7 ! co/-(-liv+
 adju/m5t det]m9$ "u section #a7;f77#c7 
= ! cal5d> ye> 9 :i* ! taxable ye>      
beg9s1 det]m9$ by sub/itut+ #bjbe =     
#bjaf 9 subp>agraph 7,a77ii7 !re(4  7,b7
 ,r\nd+ ,if any increase "u ?is p>agraph
 is n a multiple ( #ajj1 su* increase   

%all be r\nd$ to ! next l[e/ multiple ( 
#ajj4  7c7 ,qualify+ unborn *ild  7#a7  
,9 g5]al ,= purposes ( ?is section1 !   
t]m qualify+ unborn *ild means an unborn
 *ild ^: ge/ational age is #bj weeks or 
great]1 z c]tifi$ by a physician 9      
accordance ) p>agraph 7#b74  7#b7       
,c]tification  7,a7 ,9 g5]al ,^u !      
reque/ ( ! "m1 a physician may make a   
det]m9ation ) respect to ! ge/ational   
age ( ! unborn *ild4 ,any det]m9ation   
made "u ?is p>agraph %all be bas$ on !  
reasonable m$ical judgm5t ( ! physician 
foll[+ su* inquiries1 exam9ations1 &    
te/s z a reasonably prud5t physician    
w\ld deem necess>y = purposes ( mak+ su*
 det]m9ation4  7,b7 ,=m ,if ! physician 
has made a det]m9ation pursuant to      
subp>agraph 7,a7 t ! ge/ational age ( ! 
unborn *ild is #bj weeks or great]1 su* 
physician may1 ^u ! reque/ ( ! "m1      
provide ! "m ) a =m :i* includes !      
foll[+3 7i7 ,! ge/ational age & !       
expect$ due date ( ! unborn *ild4  7ii7 
,! "n & social security numb] ( ! "m4   

7iii7 ,if applicable1 ! "n & social     
security numb] ( ! sp\se ( su* "m4  7iv7
 ,! "n & contact in=mation ( !          
physician4  7v7 ,a writt5 c]tification f
 su* physician /at+1 "u p5alty ( p]jury 
pursuant to section #agdf ( title #bh1  
t-- 7,i7 ! "m 0 det]m9$ to h be5        
pregnant ) ! unborn *ild1 accord+ to    
/&>d m$ical practice1 by su* physician1 
&  7,,ii7 su* physician has det]m9$ t1 9
 _! reasonable m$ical judgm5t1 !        
ge/ational age ( ! unborn *ild is #bj   
weeks or great]4  7vi7 ,a writt5        
c]tification f ! "m ( ! unborn *ild     
/at+1 "u p5alty ( p]jury pursuant to    
section #agdf ( title #bh1 ,unit$ ,/ates
 ,code1 t %e-- 7,i7 is ! biological "m (
 su* unborn *ild1 or  7,,ii7 initiat$ ! 
pregnancy ) ! int5tion ( be>+ & reta9+  
cu/ody ( & p>5tal rights to su* *ild 7or
 act$ to su* effect74  7,c7 ,prohibition
 ,not)/&+ any o!r provision ( law1 !    
c]tification describ$ 9 ?is p>agraph    
%all n be us$ = any purpose o!r ?an to  
det]m9e ! eligibility ( ! taxpay] = !   

cr$it all[$ "u ?is section4  7d7        
,application  7#a7 ,9 g5]al ,9 ! case ( 
! involunt>y dea? ( an unborn *ild1 or !
 dea? ( an unborn *ild z a result ( any 
treatm5t int5d$ to save ! life ( ! "m or
 any treatm5t ( an ectopic pregnancy1   
occurr+ aft] #bj weeks ge/ation1 ! dea? 
( su* *ild %all h no effect ) respect to
 :e!r ! cr$it is all[$ "u ?is section to
 an eligible taxpay]1 provid$ t su*     
taxpay] o!rwise satisfies ! applicable  
requirem5ts "u ?is section4  7#b7 ,m ?an
 #a unborn *ild dur+ ! same taxable ye> 
,9 ! case ( an eligible taxpay] :o--    
7,a7 has m ?an #a pregnancy dur+ a      
taxable ye>1 or  7,b7 is det]m9$ to be  
pregnant ) m ?an #a qualify+ unborn     
*ild1  ! cr$it "u ?is section %all be   
all[$ ) respect to ea* qualify+ unborn  
*ild4  7#c7 ,int]action ) *ild tax cr$it
 ,! all[ance ( a cr$it "u ?is section ) 
respect to a qualify+ unborn *ild %all h
 no effect 9 reg>ds to ! application (  
section #cf;,c ) respect to su* *ild    
aft] ! date ( _! bir?4  7e7 ,prohibition

 ,no cr$it %all be all[$ "u ?is section 
if an unborn *ild di$ z a result ( an   
induc$ abortion1 b n includ+ any        
treatm5t int5d$ to save ! life ( ! "m or
 any treatm5t ( an ectopic pregnancy4   
7f7 ,def9itions ,9 ?is section-- 7#a7   
,eligible taxpay] ,! t]m eligible       
taxpay] means a taxpay] :o-- 7,a7 )     
respect to an unborn *ild1 is ! "m :o-- 
7i7 c>ries or c>ri$ su* *ild 9 ! womb1 &
  7ii7 is ! biological "m ( su* *ild or 
initiat$ ! pregnancy ) ! int5tion ( be>+
 & reta9+ cu/ody ( & p>5tal rights to   
su* *ild 7or act$ to su* effect71 or    
7,b7 9 ! case ( a jo9t return1 is !     
sp\se ( su* "m1  b only if su* taxpay]  
includes on ! return ( tax = ! taxable  
ye> ! social security numb] ( su*       
taxpay] 7( at lea/ #a ( su* "m or sp\se1
 9 ! case ( a jo9t return74  7#b7       
,ge/ational age ,! t]m ge/ational age   
means ! age ( ! unborn *ild1 z calculat$
 f ! fir/ day ( ! "m's la/ m5/rual      
p]iod4  7#c7 ,physician ,! t]m physician
 means an individual :o is-- 7,a7 lic5s$

 to practice-- 7i7 m$ic9e & surg]y1     
7ii7 o/eopa?ic m$ic9e & surg]y1 or      
7iii7 midwif]y1 or  7,b7 o!rwise legally
 au?oriz$ to-- 7i7 p]=m bir?s & to      
diagnose & att5d misc>riages or         
/illbir?s1 &  7ii7 p]=m exam9ations to  
det]m9e ! ge/ational age ( an unborn    
*ild1  by ! ,/ate 9 :i* su* practice is 
p]=m$4  7#d7 ,reasonable m$ical judgm5t 
,! t]m reasonable m$ical judgm5t means a
 m$ical judgm5t t w\ld be made by a     
reasonably prud5t physician :o is       
kn[l$geable ab\t ! case & ! treatm5t    
possibilities ) respect to ! m$ical     
conditions involv$4  7#e7 ,social       
security numb] ,! t]m social security   
numb] has ! mean+ giv5 su* t]m by       
section #cf;,c7e77#b74  4  7b7 ,cl]ical 
am5dm5t ,! table ( sections = subp>t ,c 
( "p ,,iv ( sub*apt] ,a ( *apt] #a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#cf;,c ! foll[+ new item3  ,sec4 #cf;,d4
 ,cr$it = pregnant mo!rs4  4  7c7       
,effective date ,! am5dm5ts made by ?is 

section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbe4  ,,ii  
,o!r am5dm5ts to ! ,int]nal ,rev5ue     
,code ( #aihf  #bja4 ,simplification (  
e>n$ income cr$it = taxpay]s ) *ildr5   
7a7 ,additional limitation ,section     
#cb7;a77#b7 ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ to read z foll[s3  7#b7 
,limitation ,! am\nt ( ! cr$it all[able 
to a taxpay] "u p>agraph 7#a7 = any     
taxable ye> %all n exce$ ! less] (--    
7,a7 ! excess 7if any7 (-- 7i7 ! cr$it  
p]c5tage ( ! e>n$ income am\nt1 ov]     
7ii7 ! phase\t p]c5tage ( s mu* ( !     
adju/$ gross income 7or1 if great]1 !   
e>n$ income7 ( ! taxpay] = ! taxable ye>
 z exce$s ! phase\t am\nt1 or  7,b7 an  
am\nt equal to-- 7i7 9 ! case ( any     
taxpay] ) no qualify+ *ildr5-- 7,i7 :o  
is n fil+ a jo9t return1 #gjj1 or       
7,,ii7 :o is fil+ a jo9t return1 #a1djj1
 or  7ii7 9 ! case ( any taxpay] ) #a or
 m qualify+ *ildr5-- 7,i7 :o is n fil+ a
 jo9t return1 #d1cjj1 or  7,,ii7 :o is  
fil+ a jo9t return1 #e1jjj4  4  7b7     

,cr$it p]c5tage & phase\t p]c5tage ,!   
table conta9$ 9 section #cb7;b77#a7 ( ! 
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7#a7 by /rik+ #a qualify+ *ild 9
 ! fir/ r[ & ins]t+ #a or m qualify+    
*ildr51  7#b7 by /rik+ #ae4ih 9 ! fir/  
r[ & ins]t+ #be1  7#c7 by /rik+ ! second
 & ?ird r[s1 &  7#d7 by /rik+ #g4fe 9 ! 
?ird column ( ! la/ r[ & ins]t+ #aj4    
7c7 ,e>n$ income & phase\t am\nts ,!    
table conta9$ 9 section #cb7;b77#b77;,a7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$-- 7#a7 by /rik+ #a qualify+ *ild 9
 ! fir/ r[ & ins]t+ #a or m qualify+    
*ildr51  7#b7 by /rik+ #f1ccj 9 ! fir/  
r[ & ins]t+ #ab1fdg1  7#c7 by /rik+     
#aa1faj 9 ! fir/ r[ & ins]t+ #cc1jjj1   
7#d7 by /rik+ ! second r[1  7#e7 by     
/rik+ #d1bbj 9 ! la/ r[ & ins]t+ #i1aej1
 &  7#f7 by /rik+ #e1bhj 9 ! la/ r[ &   
ins]t+ #aj1jjj4  7d7 ,jo9t returns      
,section #cb7;b77#b77;,b7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
#e1jjj & ins]t+ 8#aj1jjj1 & ! e>n$      
income am\nt det]m9$ "u subp>agraph 7,a7

 %all be increas$--  7i7 by #b1jei1 9 ! 
case ( a taxpay] ) #a or m qualify+     
*ildr51 &  7ii7 by #i1aea1 9 ! case ( a 
taxpay] ) no qualify+ *ildr54  4  7e7   
,inflation adju/m5t ,section #cb7;j77#a7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$-- 7#a7 by /rik+ #bjae & ins]t+    
#bjbf1  7#b7 by /rik+ clauses 7i7 & 7ii7
 ( subp>agraph 7,b7 !re( & r$esignat+   
clause 7iii7 ( su* subp>agraph z clause 
7ii71 &  7#c7 by ins]t+ be=e clause 7ii7
 ( subp>agraph 7,b7 !re(1 z s           
r$esignat$1 ! foll[+ new clause3  7i7 9 
! case ( am\nts 9 subsection 7b77#b71   
cal5d> ye> #bjbe = cal5d> ye> #bjaf1 &  
4  7f7 ,effective date  7#a7 ,9 g5]al   
,subject to p>agraph 7#b71 ! am5dm5ts   
made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbe4  7#b7 ,nonapplication to exempt$ 
*ildr5  7,a7 ,9 g5]al ,subject to       
subp>agraph 7,b71 9 ! case ( any        
eligible individual 7z def9$ 9 section  
#cb7;c77#a7 ( ! ,int]nal ,rev5ue ,code (
 #aihf7 :o has any qualify+ *ildr5 = !  

taxable ye> :o are exempt$ *ildr51      
section #cb ( ! ,int]nal ,rev5ue ,code (
 #aihf %all be appli$ ) respect to su*  
eligible individual z if ! am5dm5ts made
 by subsections 7a7 ?r\gh 7e7 ( ?is     
section _h n be5 enact$4  7,b7 ,sep>ate 
application ,9 ! case ( any eligible    
individual 7z s def9$7 :o has-- 7i7 any 
qualify+ *ildr5 = ! taxable ye> :o are n
 exempt$ *ildr51 &  7ii7 any qualify+   
*ildr5 = su* taxable ye> :o are exempt$ 
*ildr51  section #cb ( ! ,int]nal       
,rev5ue ,code ( #aihf %all be appli$    
sep>ately ) respect to ! *ildr5 describ$
 9 clause 7i7 & 7pursuant to ! rules    
describ$ 9 subp>agraph 7,a77 ! *ildr5   
describ$ 9 clause 7ii74  7,c7 ,exempt$  
*ild ,= purposes ( ?is p>agraph1 ! t]m  
exempt$ *ild means an individual :o is  
describ$ 9 subp>agraph 7,a77ii7 or 7,b7 
( section #aeb7;c77#c74  #bjb4          
,elim9ation ( additional exemption =    
dep5d5ts  7a7 ,9 g5]al ,section         
#aea7;d77#e7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ to read z foll[s3  7#e7

 ,elim9ation ( additional exemption =   
dep5d5ts = taxable ye>s aft] #bjbe ,9 ! 
case ( a taxable ye> beg9n+ aft]        
,decemb] #ca1 #bjbe-- 7,a7 ,9 g5]al ,=  
purposes ( subsection 7c71 ! t]m        
exemption am\nt means z]o4  7,b7        
,ref]5ces ,= purposes ( any o!r         
provision ( ?is title1 ! r$uction ( !   
exemption am\nt to z]o "u subp>agraph   
7,a7 %all n be tak5 into acc\nt 9       
det]m9+ :e!r a d$uction is all[$ or     
all[able1 or :e!r a taxpay] is entitl$  
to a d$uction1 "u ?is section4  4  7b7  
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbe4  #bjc4 
,elim9ation ( head ( h\sehold fil+ /atus
  7a7 ,9 g5]al ,section #a ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$-- 7#a7 by
 /rik+ subsection 7b71  7#b7 9          
subsection 7c7-- 7,a7 9 ! head+1 by     
/rik+ & heads ( h\seholds1 &  7,b7 by   
/rik+ or ! head ( a h\sehold z def9$ 9  
section #b7;b71  7#c7 9 subsection 7f71 
by /rik+ 7b71 ea* place x appe>s1  7#d7 

9 subsection 7i7-- 7,a7 9 p>agraph      
7#a7-- 7i7 9 subp>agraph 7,a77i71 by    
/rik+ 7b711  7ii7 9 subp>agraph 7,b7--  
7,i7 9 clause 7i71 by add+ & at ! end1  
7,,ii7 by /rik+ clause 7ii71 &  7,,iii7 
by r$esignat+ clause 7iii7 z clause     
7ii71 &  7iii7 9 subp>agraph 7,c71 by   
/rik+ subp>agraph 7,b77iii7 & ins]t+    
subp>agraph 7,b77ii71  7,b7 9 p>agraph  
7#b71 by /rik+ 7b711 &  7,c7 9 p>agraph 
7#c7-- 7i7 9 subp>agraph 7,a71 by /rik+ 
7b711  7ii7 9 subp>agraph 7,b7-- 7,i7 by
 /rik+ clause 7ii71 &  7,,ii7 by        
r$esignat+ clauses 7iii7 & 7iv7 z       
clauses 7ii7 & 7iii71 respectively1 &   
7iii7 9 subp>agraph 7,c71 by /rik+      
clauses 7i71 7ii71 & 7iii7 & ins]t+     
clauses 7i7 & 7ii71 &  7#e7 9 subsection
 7j7-- 7,a7 9 p>agraph 7#b7-- 7i7 by    
/rik+ subp>agraph 7,b71 &  7ii7 9       
subp>agraph 7,c71 by /rik+ & heads (    
h\seholds 9 ! head+1  7,b7 9 p>agraph   
7#c77;,b77ii71 by /rik+ or head (       
h\sehold1 &  7,c7 9 p>agraph 7#e77;,b7--
 7i7 9 clause 7i7-- 7,i7 by /rik+       

subclause 7,,ii71 &  7,,ii7 by          
r$esignat+ subclauses 7,,iii7 & 7,,iv7 z
 subclauses 7,,ii7 & 7,,iii71           
respectively1 &  7ii7 9 clause 7ii7--   
7,i7 by /rik+ subclause 7,,ii71 &       
7,,ii7 by r$esignat+ subclauses 7,,iii7 
& 7,,iv7 z subclauses 7,,ii7 & 7,,iii71 
respectively4  7b7 ,con=m+ am5dm5ts     
7#a7 ,section #be;,b7b77#b7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ to read 
z foll[s3  7#b7 ,o!r returns ,9 ! case (
 any taxpay] n describ$ 9 p>agraph 7#a71
 ! applicable p]c5tage %all be det]m9$  
"u p>agraph 7#a7 except t su* p>agraph  
%all be appli$ by sub/itut+ = ea* doll> 
am\nt !re9 7z adju/$ "u p>agraph 7#c77 a
 doll> am\nt equal to #ej p]c5t ( su*   
doll> am\nt4  4  7#b7 ,section          
#be;,e7b77#b7 ( su* ,code is am5d$--    
7,a7 9 subp>agraph 7,a71 by add+ & at ! 
end1 &  7,b7 by /rik+ subp>agraphs 7,b7 
& 7,c7 & ins]t+ ! foll[+3  7,b7 9 ! case
 ( a taxpay] n describ$ 9 subp>agraph   
7,a71 #ge1jjj4  4  7#c7 ,section        
#cj;,d7f77#aj77;,b7 ( su* ,code is      

am5d$-- 7,a7 9 clause 7i71 by add+ & at 
! end1 &  7,b7 by /rik+ clauses 7ii7 &  
7iii7 & ins]t+ ! foll[+3  7ii7 9 ! case 
( a taxpay] n describ$ 9 clause 7i71    
#aej1jjj4  4  7#d7 ,section             
#cf;,b7b77#c77;,b77ii77,i77aa7 ( su*    
,code is am5d$ by /rik+ & heads (       
h\seholds4  7#e7 ,section #fc7;c7 ( su* 
,code is am5d$-- 7,a7 9 p>agraph 7#b7-- 
7i7 9 subp>agraph 7,a77ii71 by add+ or  
at ! end1  7ii7 by /rik+ subp>agraph    
7,b71 &  7iii7 by r$esignat+ subp>agraph
 7,c7 z subp>agraph 7,b71  7,b7 9       
p>agraph 7#d71 by /rik+ 1 7#b77;,c71 ea*
 place x appe>s1 &  7,c7 9 p>agraph     
7#g7-- 7i7 by /rik+ subp>agraph 7,a7 &  
ins]t+ ! foll[+3  7,a7 ,increase 9 /&>d 
d$uction ,p>agraph 7#b77;,b7 %all be    
appli$ by sub/itut+ #ab1jjj = #c1jjj4  1
 &  7ii7 9 subp>agraph 7,b7-- 7,i7 9    
clause 7i71 by /rik+ p>agraphs 7#b77;,b7
 & 7#b77;,c7 & ins]t+ p>agraph          
7#b77;,b71 &  7,,ii7 9 clause 7ii71 by  
/rik+ #ah1jjj & #ab1jjj am\nts & ins]t+ 
#ab1jjj am\nt4  7#f7 ,section #fh7;b7 ( 

su* ,code is am5d$-- 7,a7 9 p>agraph    
7#a7-- 7i7 by /rik+ subp>agraph 7,b71   
7ii7 9 subp>agraph 7,c71 by /rik+ or    
head ( h\sehold1 &  7iii7 by r$esignat+ 
subp>agraphs 7,c7 & 7,d7 z subp>agraphs 
7,b7 & 7,c71 respectively1 &  7,b7 9    
p>agraph 7#b71 by /rik+ subp>agraphs    
7,a71 7,b71 & 7,c7 & ins]t+ subp>agraphs
 7,a7 & 7,b74  7#g7 ,section            
#ijd7;b77#c77;,e77i77,i7 ( su* ,code is 
am5d$ by /rik+ 7b714  7#h7 ,section     
#fjab7;a77#a7 ( su* ,code is am5d$--    
7,a7 9 subp>agraph 7,a7-- 7i7 9 clause  
7i71 by /rik+ is n a head ( a h\sehold  
7z def9$ 9 section #b7;b7711  7ii7 by   
/rik+ clause 7ii71  7iii7 by r$esignat+ 
clauses 7iii7 & 7iv7 z clauses 7ii7 &   
7iii71 respectively1 &  7iv7 9 ! flu%   
text at ! end1 by /rik+ ,clause 7iv7 &  
ins]t+ ,clause 7iii71 &  7,b7 9         
subp>agraph 7,b7-- 7i7 by /rik+ clause  
7i71 7ii71 or 7iii7 & ins]t+ clause 7i7 
or 7ii71 &  7ii7 by /rik+ clause 7iv7 & 
ins]t+ clause 7iii74  7#i7 ,section     
#fdcc7;b77#c77;,b7 ( su* ,code is am5d$ 

to read z foll[s3  7,b7 ,o!r returns ,9 
! case ( any taxpay] :o is n fil+ a jo9t
 return & :o is n a surviv+ sp\se 7z    
def9$ 9 section #b7;a771 ! applicable   
doll> am\nt & ! phase\t range %all be  (
 ! am\nts applicable "u subp>agraph 7,a7
 7z s adju/$74  4  7#aj7 ,section       
#ffie7;g7 ( su* ,code is am5d$ to read z
 foll[s3  7g7 ,failure ,to be dilig5t 9 
det]m9+ eligibility = c]ta9 tax b5efits 
,any p]son :o is a tax return prep>] )  
respect to any return or claim = refund 
:o fails to comply ) due dilig5ce       
requirem5ts impos$ by ! ,secret>y by    
regulations ) respect to det]m9+        
eligibility =1 or ! am\nt (1 ! cr$it    
all[able by section #be;,a7a77#a71 #cb1 
or #cf;,c %all pay a p5alty ( #ejj = ea*
 su* failure4  4  7c7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to taxable ye>s beg9n+ aft] ,decemb]   
#ca1 #bjbe4  #bjd4 ,exclusion ( *ildr5 f
 cr$it = exp5ses = h\sehold & dep5d5t   
c>e s]vices necess>y = ga9ful employm5t 
7a7 ,9 g5]al ,section #ba ( ! ,int]nal  

,rev5ue ,code ( #aihf is am5d$-- 7#a7 9 
subsection 7b7-- 7,a7 9 p>agraph 7#a7-- 
7i7 by /rik+ subp>agraph 7,a71  7ii7 9  
subp>agraph 7,b71 by ins]t+ :o has      
atta9$ age #ag & be=e :o is physically  
or m5tally incapable1 &  7iii7 by       
r$esignat+ subp>agraphs 7,b7 & 7,c7 z   
subp>agraphs 7,a7 & 7,b71 respectively1 
&  7,b7 9 p>agraph 7#b71 by /rik+       
subp>agraph 7,b7 & ins]t+ ! foll[+3     
7,b7 ,exception ,employm5t-relat$       
exp5ses describ$ 9 subp>agraph 7,a7 :i* 
are incurr$ = s]vices outside !         
taxpay]'s h\sehold %all be tak5 into    
acc\nt only if incurr$ = ! c>e ( a      
qualify+ individual :o regul>ly sp5ds at
 lea/ #h h\rs ea* day 9 ! taxpay]'s     
h\sehold4  1  7#b7 9 subsection 7d77#b71
 by /rik+ subsection 7b77#a77;,c7 &     
ins]t+ subsection 7b77#a77;,b71 &  7#c7 
9 subsection 7e77#e7-- 7,a7 9           
subp>agraph 7,b71 by /rik+ is "u ! age (
 #ac or & ins]t+ has atta9$ age #ag &1 &
  7,b7 9 ! flu% text at ! end1 by /rik+ 
subp>agraph 7,a7 or 7,b7 ( subsection   

7b77#a7 7:i*ev] is appropriate7 & ins]t+
 subsection 7b77#a77;,a74  7b7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbe4  #bje4 
,d5ial ( d$uction = ,/ate & local taxes 
( individuals  7a7 ,9 g5]al ,section    
#afd7;b77#f7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ to read z foll[s3  7#f7
 ,limitation on d$uction ( c]ta9 taxes =
 individuals  7,a7 ,9 g5]al ,9 ! case ( 
an individual1 no d$uction %all be all[$
 = taxes-- 7i7 describ$ 9 p>agraphs     
7#a71 7#b71 or 7#c7 ( subsection 7a71 or
  7ii7 describ$ 9 p>agraph 7#e7 ( ?is   
subsection4  7,b7 ,exceptions           
,subp>agraph 7,a7 %all n apply to-- 7i7 
any =eign taxes describ$ 9 subsection   
7a77#c71 or  7ii7 any taxes describ$ 9  
p>agraph 7#a7 & 7#b7 ( subsection 7a7   
:i* are paid or accru$ 9 c>ry+ on a     
trade or bus9ess or an activity describ$
 9 section #bab4  7,c7 ,special rule ,= 
purposes ( subp>agraph 7,a71 an am\nt   
paid 9 a taxable ye> beg9n+ be=e ,janu>y

 #a1 #bjbf1 ) respect to a ,/ate or     
local income tax impos$ = a taxable ye> 
beg9n+ aft] ,decemb] #ca1 #bjbe1 %all be
 treat$ z paid on ! la/ day ( ! taxable 
ye> = :i* su* tax is s impos$4  4  7b7  
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbe4