II 

116TH CONGRESS 

1ST SESSION S. 690 

To amend the Internal Revenue Code of 1986 to make the child tax credit 

fully refundable, establish an increased child tax credit for young children, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 6, 2019 

Mr. BENNET (for himself, Mr. BROWN, Ms. BALDWIN, Mr. BLUMENTHAL, Mr. 

BOOKER, Mr. CARDIN, Mr. CASEY, Mr. COONS, Ms. CORTEZ MASTO, Ms. 

DUCKWORTH, Mr. DURBIN, Mrs. GILLIBRAND, Ms. HARRIS, Ms. HASSAN, Mr. HEINRICH, Ms. HIRONO, Mr. JONES, Ms. KLOBUCHAR, Mr. 

LEAHY, Mr. MARKEY, Mr. MENENDEZ, Mr. MERKLEY, Mr. MURPHY, 

Mrs. MURRAY, Mr. PETERS, Mr. REED, Mr. SANDERS, Mr. SCHATZ, Mr. 

SCHUMER, Mrs. SHAHEEN, Ms. SMITH, Ms. STABENOW, Mr. TESTER, 

Mr. VAN HOLLEN, Ms. WARREN, Mr. WHITEHOUSE, and Mr. WYDEN) 

introduced the following bill; which was read twice and referred to the 

Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to make 

the child tax credit fully refundable, establish an increased child tax credit for young children, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘American Family Act 

3 of 2019’’. 

4 SEC. 2. ESTABLISHMENT OF FULLY REFUNDABLE CHILD 

5 TAX CREDIT. 

6 (a) ELIMINATION OF EXISTING CHILD TAX CRED7 IT.—Subpart A of part IV of subchapter A of chapter 1 

8 of subtitle A of the Internal Revenue Code of 1986 is 

9 amended by striking section 24. 

10 (b) ESTABLISHMENT OF FULLY REFUNDABLE

11 CHILD TAX CREDIT.—Subpart C of part IV of subchapter 

12 A of chapter 1 of subtitle A of such Code is amended by 

13 inserting after section 36B the following new section: 

14 ‘‘SEC. 36C. CHILD TAX CREDIT. 

15 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al16 lowed as a credit against the tax imposed by this chapter 

17 for the taxable year an amount equal to the sum of— 

18 ‘‘(1) with respect to each qualifying child of the 

19 taxpayer who has attained 6 years of age before the 

20 close of such taxable year and for which the tax21 payer is allowed a deduction under section 151, an 

22 amount equal to $3,000, and 

23 ‘‘(2) with respect to each qualifying child of the 

24 taxpayer who has not attained 6 years of age before 

25 the close of such taxable year and for which the tax26 payer is allowed a deduction under section 151, an 


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1 amount equal to 120 percent of the dollar amount 

2 in paragraph (1). 

3 ‘‘(b) LIMITATION.— 

4 ‘‘(1) IN GENERAL.—The amount of the credit 

5 allowable under subsection (a) shall be reduced (but 

6 not below zero) by the applicable amount for each 

7 $1,000 (or fraction thereof) by which the taxpayer’s 

8 modified adjusted gross income exceeds the thresh9 old amount. For purposes of the preceding sentence, 

10 the term ‘modified adjusted gross income’ means ad11 justed gross income increased by any amount ex12 cluded from gross income under section 911, 931, or 

13 933. 

14 ‘‘(2) THRESHOLD AMOUNT.— 

15 ‘‘(A) IN GENERAL.—For purposes of para16 graph (1), the term ‘threshold amount’ 

17 means— 

18 ‘‘(i) $180,000 in the case of a joint 

19 return, 

20 ‘‘(ii) $130,000 in the case of an indi21 vidual who is not married, and 

22 ‘‘(iii) $90,000 in the case of a married 

23 individual filing a separate return. 


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1 ‘‘(B) MARITAL STATUS.—For purposes of 

2 this paragraph, marital status shall be deter3 mined under section 7703. 

4 ‘‘(3) APPLICABLE AMOUNT.—For purposes of 

5 paragraph (1), the term ‘applicable amount’ means 

6 an amount equal to the quotient of— 

7 ‘‘(A) the amount of the credit allowable 

8 under subsection (a), as determined without re9 gard to this subsection, divided by 

10 ‘‘(B) an amount equal to the product of— 

11 ‘‘(i) $20, multiplied by 

12 ‘‘(ii) the total number of qualifying 

13 children of the taxpayer. 

14 ‘‘(c) QUALIFYING CHILD.— 

15 ‘‘(1) IN GENERAL.—In this section, the term 

16 ‘qualifying child’ means a qualifying child of the tax17 payer (as defined in section 152(c)) who has not at18 tained 17 years of age. 

19 ‘‘(2) EXCEPTION FOR CERTAIN NON-CITI20 ZENS.—The term ‘qualifying child’ shall not include 

21 any individual who would not be a dependent if sub22 paragraph (A) of section 152(b)(3) were applied 

23 without regard to all that follows ‘resident of the 

24 United States’. 

25 ‘‘(d) INFLATION ADJUSTMENT.— 


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1 ‘‘(1) IN GENERAL.—In the case of any taxable 

2 year beginning after 2020, the $3,000 amount in 

3 subsection (a)(1) shall be increased by an amount 

4 equal to— 

5 ‘‘(A) such dollar amount, multiplied by 

6 ‘‘(B) the cost-of-living adjustment deter7 mined under paragraph (2) for the calendar 

8 year in which the taxable year begins. 

9 ‘‘(2) COST-OF-LIVING ADJUSTMENT.—For pur10 poses of paragraph (1), the cost-of-living adjustment 

11 for any calendar year is the percentage (if any) by 

12 which— 

13 ‘‘(A) the CPI for the preceding calendar 

14 year (as determined pursuant to section 

15 1(f)(4)), exceeds 

16 ‘‘(B) the CPI for calendar year 2019. 

17 ‘‘(3) ROUNDING.—If any increase determined 

18 under paragraph (1) is not a multiple of $50, such 

19 increase shall be rounded to the nearest multiple of 

20 $50. 

21 ‘‘(e) PARTIAL NON-REFUNDABLE CREDIT ALLOWED

22 FOR CERTAIN OTHER DEPENDENTS.— 

23 ‘‘(1) IN GENERAL.—In the case of a taxable 

24 year beginning after December 31, 2019, and before 

25 January 1, 2026, the aggregate credits allowed to a 


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1 taxpayer under subpart A shall be increased by $500 

2 for each dependent of the taxpayer (as defined in 

3 section 152) other than a qualifying child described 

4 in subsection (c). The amount of the credit allowed 

5 under this subsection shall not be treated as a credit 

6 allowed under this subpart. 

7 ‘‘(2) EXCEPTION FOR CERTAIN NONCITIZENS.— 

8 Paragraph (1) shall not apply with respect to any 

9 individual who would not be a dependent if subpara10 graph (A) of section 152(b)(3) were applied without 

11 regard to all that follows ‘resident of the United 

12 States’. 

13 ‘‘(3) LIMITATION.— 

14 ‘‘(A) IN GENERAL.—The amount of the 

15 credit allowable under paragraph (1) shall be 

16 reduced (but not below zero) by $50 for each 

17 $1,000 (or fraction thereof) by which the tax18 payer’s modified adjusted gross income exceeds 

19 the threshold amount. 

20 ‘‘(B) MODIFIED ADJUSTED GROSS IN21 COME.—For purposes of subparagraph (A), the 

22 term ‘modified adjusted gross income’ means 

23 adjusted gross income increased by any amount 

24 excluded from gross income under section 911, 

25 931, or 933. 


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1 ‘‘(C) THRESHOLD AMOUNT.— 

2 ‘‘(i) IN GENERAL.—For purposes of 

3 subparagraph (A), the term ‘threshold 

4 amount’ means— 

5 ‘‘(I) $200,000 in the case of a 

6 joint return, 

7 ‘‘(II) $150,000 in the case of an 

8 individual who is not married, and 

9 ‘‘(III) $100,000 in the case of a 

10 married individual filing a separate 

11 return. 

12 ‘‘(ii) MARTIAL STATUS.—For pur13 poses of this subparagraph, marital status 

14 shall be determined under section 7703. 

15 ‘‘(f) IDENTIFICATION REQUIREMENTS.— 

16 ‘‘(1) QUALIFYING CHILD AND DEPENDENT

17 IDENTIFICATION REQUIREMENT.—No credit shall be 

18 allowed under this section to a taxpayer with respect 

19 to any qualifying child or dependent unless the tax20 payer includes the name and taxpayer identification 

21 number of such qualifying child or dependent on the 

22 return of tax for the taxable year and such taxpayer 

23 identification number was issued on or before the 

24 due date for filing such return. 


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1 ‘‘(2) TAXPAYER IDENTIFICATION REQUIRE2 MENT.—No credit shall be allowed under this section 

3 if the taxpayer identification number of the taxpayer 

4 was issued after the due date for filing the return 

5 for the taxable year. 

6 ‘‘(g) TAXABLE YEAR MUST BE FULL TAXABLE

7 YEAR.—Except in the case of a taxable year closed by rea8 son of the death of the taxpayer, no credit shall be allow9 able under this section in the case of a taxable year cov10 ering a period of less than 12 months. 

11 ‘‘(h) RESTRICTIONS ON TAXPAYERS WHO IMPROP12 ERLY CLAIMED CREDIT IN PRIOR YEAR.— 

13 ‘‘(1) TAXPAYERS MAKING PRIOR FRAUDULENT

14 OR RECKLESS CLAIMS.— 

15 ‘‘(A) IN GENERAL.—No credit shall be al16 lowed under this section for any taxable year in 

17 the disallowance period. 

18 ‘‘(B) DISALLOWANCE PERIOD.—For pur19 poses of subparagraph (A), the disallowance pe20 riod is— 

21 ‘‘(i) the period of 10 taxable years 

22 after the most recent taxable year for 

23 which there was a final determination that 

24 the taxpayer’s claim of credit under this 

25 section was due to fraud, and 


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1 ‘‘(ii) the period of 2 taxable years 

2 after the most recent taxable year for 

3 which there was a final determination that 

4 the taxpayer’s claim of credit under this 

5 section was due to reckless or intentional 

6 disregard of rules and regulations (but not 

7 due to fraud). 

8 ‘‘(2) TAXPAYERS MAKING IMPROPER PRIOR

9 CLAIMS.—In the case of a taxpayer who is denied 

10 credit under this section for any taxable year as a 

11 result of the deficiency procedures under subchapter 

12 B of chapter 63, no credit shall be allowed under 

13 this section for any subsequent taxable year unless 

14 the taxpayer provides such information as the Sec15 retary may require to demonstrate eligibility for 

16 such credit. 

17 ‘‘(i) RECONCILIATION OF CREDIT AND ADVANCE

18 CREDIT.— 

19 ‘‘(1) IN GENERAL.—The amount of the credit 

20 allowed under this section for any taxable year shall 

21 be reduced (but not below zero) by the aggregate 

22 amount of any advance payments of such credit 

23 under section 7527A for such taxable year. 

24 ‘‘(2) EXCESS ADVANCE PAYMENTS.—If the ag25 gregate amount of advance payments under section 


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1 7527A for the taxable year exceed the amount of the 

2 credit allowed under this section for such taxable 

3 year (determined without regard to paragraph (1)), 

4 the tax imposed by this chapter for such taxable 

5 year shall be increased by the amount of such ex6 cess’’. 

7 (c) ADVANCE PAYMENT OF CREDIT.—Chapter 77 of 

8 the Internal Revenue Code of 1986 is amended by insert9 ing after section 7527 the following new section: 

10 ‘‘SEC. 7527A. ADVANCE PAYMENT OF CHILD TAX CREDIT. 

11 ‘‘(a) IN GENERAL.—As soon as practicable and not 

12 later than 1 year after the date of the enactment of this 

13 section, the Secretary shall establish a program for mak14 ing advance payments of the credit allowed under sub15 section (a) of section 36C on a monthly basis (determined 

16 without regard to subsection (i)(1) of such section), or as 

17 frequently as the Secretary determines to be administra18 tively feasible, to taxpayers allowed such credit. 

19 ‘‘(b) LIMITATION.— 

20 ‘‘(1) IN GENERAL.—The Secretary may make 

21 payments under subsection (a) only to the extent 

22 that the total amount of such payments made to any 

23 taxpayer during the taxable year does not exceed an 

24 amount equal to the excess, if any, of— 


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1 ‘‘(A) subject to paragraph (2), the amount 

2 determined under subsection (a) of section 36C 

3 with respect to such taxpayer (determined with4 out regard to subsection (i) of such section) for 

5 such taxable year, over 

6 ‘‘(B) the estimated tax imposed by subtitle 

7 A, as reduced by the credits allowable under 

8 subparts A and C (with the exception of section 

9 36C) of such part IV, with respect to such tax10 payer for such taxable year, as determined in 

11 such manner as the Secretary deems appro12 priate. 

13 ‘‘(2) APPLICATION OF THRESHOLD AMOUNT

14 LIMITATION.—The program described in subsection 

15 (a) shall make reasonable efforts to apply the limita16 tion of section 36C(b) with respect to payments 

17 made under such program.’’. 

18 (d) CONFORMING AMENDMENTS.— 

19 (1) The table of sections for subpart A of part 

20 IV of subchapter A of chapter 1 of subtitle A of the 

21 Internal Revenue Code of 1986 is amended by strik22 ing the item relating to section 24. 

23 (2) The table of sections for subpart C of part 

24 IV of subchapter A of chapter 1 of subtitle A of 


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1 such Code is amended by inserting after the item re2 lating to section 36B the following: 

‘‘Sec. 36C. Child tax credit.’’. 

3 (3) The table of sections for chapter 77 of such 

4 Code is amended by inserting after the item relating 

5 to section 7527 the following new item: 

‘‘Sec. 7527A. Advance payment of child tax credit.’’. 

6 (4) Subparagraph (B) of section 45R(f)(3) of 

7 such Code is amended to read as follows: 

8 ‘‘(B) SPECIAL RULE.—Any amounts paid 

9 pursuant to an agreement under section 3121(l) 

10 (relating to agreements entered into by Amer11 ican employers with respect to foreign affiliates) 

12 which are equivalent to the taxes referred to in 

13 subparagraph (A) shall be treated as taxes re14 ferred to in such subparagraph.’’. 

15 (5) Section 152(f)(6)(B)(ii) of such Code is 

16 amended by striking ‘‘section 24’’ and inserting 

17 ‘‘section 36C’’. 

18 (6) Paragraph (26) of section 501(c) of such 

19 Code is amended in the flush matter at the end by 

20 striking ‘‘section 24(c))’’ and inserting ‘‘section 

21 36C(c))’’. 

22 (7) Section 6211(b)(4)(A) of such Code is 

23 amended— 

24 (A) by striking ‘‘24(d),’’, and 


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1 (B) by inserting ‘‘36C(a),’’ after ‘‘36B,’’. 

2 (8) Section 6213(g)(2) of such Code is amend3 ed— 

4 (A) in subparagraph (I), by striking ‘‘sec5 tion 24(e)’’ and inserting ‘‘section 36C(f)’’, and 

6 (B) in subparagraph (L), by striking ‘‘24, 

7 or 32’’ and inserting ‘‘32, or 36C’’. 

8 (9) Paragraph (2) of section 1324(b) of title 

9 31, United States Code, is amended by inserting 

10 ‘‘36C(a),’’ after ‘‘36B,’’. 

11 (e) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2019. 

14 SEC. 3. PAYMENTS TO POSSESSIONS. 

15 (a) MIRROR CODE POSSESSION.—The Secretary of 

16 the Treasury shall pay to each possession of the United 

17 States with a mirror code tax system amounts equal to 

18 the loss to that possession by reason of the application 

19 of section 36C of the Internal Revenue Code of 1986 (as 

20 added by section 2) with respect to taxable years begin21 ning after 2019. Such amounts shall be determined by the 

22 Secretary of the Treasury based on information provided 

23 by the government of the respective possession. 

24 (b) OTHER POSSESSIONS.—The Secretary of the 

25 Treasury shall pay to each possession of the United States 


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1 which does not have a mirror code tax system amounts 

2 estimated by the Secretary of the Treasury as being equal 

3 to the aggregate benefits that would have been provided 

4 to residents of such possession by reason of the application 

5 of section 36C of such Code (as so added) for taxable 

6 years beginning after 2019 if a mirror code tax system 

7 had been in effect in such possession. The preceding sen8 tence shall not apply with respect to any possession of the 

9 United States unless such possession has a plan, which 

10 has been approved by the Secretary of the Treasury, under 

11 which such possession will promptly distribute such pay12 ments to the residents of such possession. 

13 (c) COORDINATION WITH CREDIT ALLOWED

14 AGAINST UNITED STATES INCOME TAXES.—No credit 

15 shall be allowed against United States income taxes for 

16 any taxable year under section 36C of the Internal Rev17 enue Code of 1986 (as so added) to any person— 

18 (1) to whom a credit is allowed against taxes 

19 imposed by the possession by reason of the amend20 ments made by this section for such taxable year, or 

21 (2) who is eligible for a payment under a plan 

22 described in subsection (b) with respect to such tax23 able year. 

24 (d) DEFINITIONS AND SPECIAL RULES.— 


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1 (1) POSSESSION OF THE UNITED STATES.—For 

2 purposes of this section, the term ‘‘possession of the 

3 United States’’ includes the Commonwealth of Puer4 to Rico and the Commonwealth of the Northern 

5 Mariana Islands. 

6 (2) MIRROR CODE TAX SYSTEM.—For purposes 

7 of this section, the term ‘‘mirror code tax system’’ 

8 means, with respect to any possession of the United 

9 States, the income tax system of such possession if 

10 the income tax liability of the residents of such pos11 session under such system is determined by ref12 erence to the income tax laws of the United States 

13 as if such possession were the United States. 

14 (3) TREATMENT OF PAYMENTS.—For purposes 

15 of section 1324(b)(2) of title 31, United States 

16 Code, the payments under this section shall be treat17 ed in the same manner as a refund due from the 

18 credit allowed under section 36C of the Internal 

19 Revenue Code of 1986. 

Æ 


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