I 

108TH CONGRESS 

1ST SESSION H. R. 1782

To amend the Internal Revenue Code of 1986 to change the calculation 

and simplify the administration of the earned income tax credit. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 11, 2003

Mr. BECERRA (for himself, Mr. RANGEL, Mr. STARK, Mr. MATSUI, Mr. 

MCDERMOTT, Mr. NEAL of Massachusetts, Mr. DOGGETT, Mr. ACEVEDOVILA ́, Ms. BORDALLO, Mr. CASE, Mr. GRIJALVA, Mr. GUTIERREZ, Mr. 

HINOJOSA, Ms. LEE, Mr. PAYNE, Ms. ROYBAL-ALLARD, Ms. 

SCHAKOWSKY, and Mr. SERRANO) introduced the following bill; which 

was referred to the Committee on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 to change 

the calculation and simplify the administration of the 

earned income tax credit.

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

3 SECTION 1. CHANGES IN CALCULATION OF EARNED IN4 COME TAX CREDIT. 

5 (a) PERCENTAGES.—Paragraph (1) of section 32 of 

6 the Internal Revenue Code of 1986 (relating to percent7 ages) is amended—
2

•HR 1782 IH 

1 (1) by redesignating subparagraphs (A), (B), 

2 and (C) as subparagraphs (B), (C), and (D), 

3 (2) by striking ‘‘IN GENERAL.—’’ in subpara4 graph (B) (as so redesignated) and inserting ‘‘PER5 CENTAGES AFTER 1995.—’’, and 

6 (3) by inserting before subparagraph (B) (as so 

7 redesignated) the following: 

8 ‘‘(A) IN GENERAL.—In the case of taxable 

9 years beginning after 2003:

‘‘In the case of an eligible individual with: The credit percentage is: 

The phaseout 

percentage is: 

1 qualifying child .......................................................... 34.00 23.22

2 qualifying children ..................................................... 40.00 21.79

3 or more qualifying children ....................................... 45.00 24.52

No qualifying children .................................................. 15.3 15.3’’. 

10 (b) AMOUNTS.—Subparagraph (A) of section 

11 32(b)(2) of such Code is amended to read as follows: 

12 ‘‘(A) IN GENERAL.—Subject to subpara13 graph (B), the earned income amount and the 

14 phaseout amount shall be determined as fol15 lows:

‘‘In the case of an eligible individual with: The earned income amount is: 

The phaseout 

amount is: 

1 qualifying child .......................................................... $10,710 $13,730

2 or more qualifying children ....................................... $10,710 $13,730

No qualifying children .................................................. $6,000 $10,710’’. 

16 (c) INFLATION ADJUSTMENT.—Paragraph (1)(B) of 

17 section 32(j) of such Code (relating to inflation adjust18 ments) is amended to read as follows: 
3

•HR 1782 IH 

1 ‘‘(B) the cost-of-living adjustment deter2 mined under section 1(f)(3) for the calendar 

3 year in which the taxable year begins, deter4 mined—

5 ‘‘(i) in the case of the amount in sub6 section (i)(1), by substituting ‘calendar 

7 year 1995’ for ‘calendar year 1992’ in sub8 paragraph (B) thereof, and 

9 ‘‘(ii) in the case of amounts in sub10 section (b)(2)(A), by substituting ‘calendar 

11 year 2002’ for ‘calendar year 1992’ in sub12 paragraph (B) thereof, and 

13 ‘‘(iii) in the case of the $3,000 

14 amount in subsection (b)(2)(B)(iii), by 

15 substituting ‘calendar year 2007’ for ‘cal16 endar year 1992’ in subparagraph (B) of 

17 such section 1.’’. 

18 (d) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 December 31, 2003. 

21 SEC. 2. SIMPLIFICATION OF THE ADMINISTRATION OF THE 

22 EARNED INCOME TAX CREDIT. 

23 (a) MODIFICATION OF JOINT RETURN REQUIRE24 MENT.—Subsection (d) of section 32 of the Internal Rev-
4

•HR 1782 IH 

1 enue Code of 1986 (relating to married individuals) is 

2 amended to read as follows: 

3 ‘‘(d) MARRIED INDIVIDUALS.—

4 ‘‘(1) IN GENERAL.—If the taxpayer is married 

5 at the close of the taxable year, the credit shall be 

6 allowed under subsection (a) only if the taxpayer 

7 and his spouse file a joint return for the taxable 

8 year. 

9 ‘‘(2) MARITAL STATUS.—For purposes of para10 graph (1), an individual legally separated from his 

11 spouse under a decree of divorce or of separate 

12 maintenance shall not be considered as married. 

13 ‘‘(3) CERTAIN MARRIED INDIVIDUALS LIVING

14 APART.—For purposes of paragraph (1), if—

15 ‘‘(A) an individual—

16 ‘‘(i) is married and files a separate re17 turn, and 

18 ‘‘(ii) has a qualifying child who is a 

19 son, daughter, stepson, or stepdaughter of 

20 such individual, and 

21 ‘‘(B) during the last 6 months of such tax22 able year, such individual and such individual’s 

23 spouse do not have the same principal place of 

24 abode, 

25 such individual shall not be considered as married.’’. 
5

•HR 1782 IH 

1 (b) REPEAL RELATING TO EXCESSIVE INVESTMENT

2 INCOME.—Subsection (i) of section 32 of such Code (relat3 ing to denial of credit for individuals having excessive in4 vestment income) is repealed. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2003.

Æ