I 

108TH CONGRESS 

1ST SESSION H. R. 2392

To amend the Internal Revenue Code of 1986 to accelerate the increase 

in the refundability of the child tax credit, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 9, 2003

Mr. CASTLE (for himself, Mr. TANNER, Mr. UPTON, Mr. MOORE, Mr. BOEHLERT, and Mr. ALEXANDER) 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 accelerate 

the increase in the refundability of the child tax credit, 

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,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Relief for Working 

5 Families Tax Act of 2003’’. 

6 TITLE I—CHILD TAX CREDIT 

7 SEC. 101. ACCELERATION OF INCREASE IN REFUNDABILITY 

8 OF THE CHILD TAX CREDIT. 

9 (a) ACCELERATION OF REFUNDABILITY.—
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1 (1) IN GENERAL.—Section 24(d)(1)(B)(i) of the 

2 Internal Revenue Code of 1986 (relating to portion 

3 of credit refundable) is amended by striking ‘‘(10 

4 percent in the case of taxable years beginning before 

5 January 1, 2005)’’. 

6 (2) ADVANCE PAYMENT.—Subsection (b) of sec7 tion 6429 of such Code (relating to advance pay8 ment of portion of increased child credit for 2003) 

9 is amended by striking ‘‘and’’ at the end of para10 graph (2), by striking the period at the end of para11 graph (3) and inserting ‘‘, and’’, and by adding at 

12 the end the following new paragraph: 

13 ‘‘(4) section 24(d)(1)(B)(i) applied without re14 gard to the first parenthetical therein.’’. 

15 (3) EARNED INCOME INCLUDES COMBAT PAY.—

16 Section 24(d)(1) of such Code is amended by adding 

17 at the end the following new sentence: ‘‘For pur18 poses of subparagraph (B), any amount excluded 

19 from gross income by reason of section 112 shall be 

20 treated as earned income which is taken into ac21 count in computing taxable income for the taxable 

22 year.’’. 

23 (b) EFFECTIVE DATES.—

24 (1) SUBSECTIONS (a)(1) AND (a)(3).—The 

25 amendments made by subsections (a)(1) and (a)(3) 
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1 shall apply to taxable years beginning after Decem2 ber 31, 2002. 

3 (2) SUBSECTION (a)(2).—The amendments 

4 made by subsection (a)(2) shall take effect as if in5 cluded in the amendments made by section 101(b) 

6 of the Jobs and Growth Tax Relief Reconciliation 

7 Act of 2003. 

8 SEC. 102. REDUCTION IN MARRIAGE PENALTY IN CHILD 

9 TAX CREDIT. 

10 (a) IN GENERAL.—Section 24(b)(2) of the Internal 

11 Revenue Code of 1986 (defining threshold amount) is 

12 amended—

13 (1) by inserting ‘‘($115,000 for taxable years 

14 beginning in 2008 or 2009, and $150,000 for tax15 able years beginning in 2010)’’ after ‘‘$110,000’’, 

16 and 

17 (2) by striking ‘‘$55,000’’ in subparagraph (C) 

and inserting ‘‘1 18 ⁄2 of the amount in effect under sub19 paragraph (A)’’. 

20 (b) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to taxable years beginning after 

22 December 31, 2002. 
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1 SEC. 103. APPLICATION OF EGTRRA SUNSET TO THIS SEC2 TION. 

3 Each amendment made by this title shall be subject 

4 to title IX of the Economic Growth and Tax Relief Rec5 onciliation Act of 2001 to the same extent and in the same 

6 manner as the provision of such Act to which such amend7 ment relates. 

8 TITLE II—UNIFORM DEFINITION 

9 OF CHILD 

10 SEC. 201. UNIFORM DEFINITION OF CHILD, ETC. 

11 Section 152 of the Internal Revenue Code of 1986 

12 is amended to read as follows: 

13 ‘‘SEC. 152. DEPENDENT DEFINED. 

14 ‘‘(a) IN GENERAL.—For purposes of this subtitle, the 

15 term ‘dependent’ means—

16 ‘‘(1) a qualifying child, or 

17 ‘‘(2) a qualifying relative. 

18 ‘‘(b) EXCEPTIONS.—For purposes of this section—

19 ‘‘(1) DEPENDENTS INELIGIBLE.—If an indi20 vidual is a dependent of a taxpayer for any taxable 

21 year of such taxpayer beginning in a calendar year, 

22 such individual shall be treated as having no depend23 ents for any taxable year of such individual begin24 ning in such calendar year. 

25 ‘‘(2) MARRIED DEPENDENTS.—An individual 

26 shall not be treated as a dependent of a taxpayer 
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1 under subsection (a) if such individual has made a 

2 joint return with the individual’s spouse under sec3 tion 6013 for the taxable year beginning in the cal4 endar year in which the taxable year of the taxpayer 

5 begins. 

6 ‘‘(3) CITIZENS OR NATIONALS OF OTHER COUN7 TRIES.—

8 ‘‘(A) IN GENERAL.—The term ‘dependent’ 

9 does not include an individual who is not a cit10 izen or national of the United States unless 

11 such individual is a resident of the United 

12 States or a country contiguous to the United 

13 States. 

14 ‘‘(B) EXCEPTION FOR ADOPTED CHILD.—

15 Subparagraph (A) shall not exclude any child of 

16 a taxpayer (within the meaning of subsection 

17 (f)(1)(B)) from the definition of ‘dependent’ 

18 if—

19 ‘‘(i) for the taxable year of the tax20 payer, the child’s principal place of abode 

21 is the home of the taxpayer, and

22 ‘‘(ii) the taxpayer is a citizen or na23 tional of the United States. 

24 ‘‘(c) QUALIFYING CHILD.—For purposes of this sec25 tion—
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1 ‘‘(1) IN GENERAL.—The term ‘qualifying child’ 

2 means, with respect to any taxpayer for any taxable 

3 year, an individual—

4 ‘‘(A) who bears a relationship to the tax5 payer described in paragraph (2), 

6 ‘‘(B) who has the same principal place of 

7 abode as the taxpayer for more than one-half of 

8 such taxable year, 

9 ‘‘(C) who meets the age requirements of 

10 paragraph (3), and 

11 ‘‘(D) who has not provided over one-half of 

12 such individual’s own support for the calendar 

13 year in which the taxable year of the taxpayer 

14 begins. 

15 ‘‘(2) RELATIONSHIP TEST.—For purposes of 

16 paragraph (1)(A), an individual bears a relationship 

17 to the taxpayer described in this paragraph if such 

18 individual is—

19 ‘‘(A) a child of the taxpayer or a descend20 ant of such a child, or 

21 ‘‘(B) a brother, sister, stepbrother, or step22 sister of the taxpayer or a descendant of any 

23 such relative. 

24 ‘‘(3) AGE REQUIREMENTS.—
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1 ‘‘(A) IN GENERAL.—For purposes of para2 graph (1)(C), an individual meets the require3 ments of this paragraph if such individual—

4 ‘‘(i) has not attained the age of 19 as 

5 of the close of the calendar year in which 

6 the taxable year of the taxpayer begins, or 

7 ‘‘(ii) is a student who has not attained 

8 the age of 24 as of the close of such cal9 endar year. 

10 ‘‘(B) SPECIAL RULE FOR DISABLED.—In 

11 the case of an individual who is permanently 

12 and totally disabled (as defined in section 

13 22(e)(3)) at any time during such calendar 

14 year, the requirements of subparagraph (A) 

15 shall be treated as met with respect to such in16 dividual. 

17 ‘‘(4) SPECIAL RULE RELATING TO 2 OR MORE

18 CLAIMING QUALIFYING CHILD.—

19 ‘‘(A) IN GENERAL.—Except as provided in 

20 subparagraph (B) and subsection (e), if (but for 

21 this paragraph) an individual may be and is 

22 claimed as a qualifying child by 2 or more tax23 payers for a taxable year beginning in the same 

24 calendar year, such individual shall be treated 

25 as the qualifying child of the taxpayer who is—
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1 ‘‘(i) a parent of the individual, or 

2 ‘‘(ii) if clause (i) does not apply, the 

3 taxpayer with the highest adjusted gross 

4 income for such taxable year. 

5 ‘‘(B) MORE THAN 1 PARENT CLAIMING

6 QUALIFYING CHILD.—If the parents claiming 

7 any qualifying child do not file a joint return 

8 together, such child shall be treated as the 

9 qualifying child of—

10 ‘‘(i) the parent with whom the child 

11 resided for the longest period of time dur12 ing the taxable year, or 

13 ‘‘(ii) if the child resides with both par14 ents for the same amount of time during 

15 such taxable year, the parent with the 

16 highest adjusted gross income. 

17 ‘‘(d) QUALIFYING RELATIVE.—For purposes of this 

18 section—

19 ‘‘(1) IN GENERAL.—The term ‘qualifying rel20 ative’ means, with respect to any taxpayer for any 

21 taxable year, an individual—

22 ‘‘(A) who bears a relationship to the tax23 payer described in paragraph (2), 

24 ‘‘(B) whose gross income for the calendar 

25 year in which such taxable year begins is less 
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1 than the exemption amount (as defined in sec2 tion 151(d)), 

3 ‘‘(C) with respect to whom the taxpayer 

4 provides over one-half of the individual’s sup5 port for the calendar year in which such taxable 

6 year begins, and 

7 ‘‘(D) who is not a qualifying child of such 

8 taxpayer or of any other taxpayer for any tax9 able year beginning in the calendar year in 

10 which such taxable year begins. 

11 ‘‘(2) RELATIONSHIP.—For purposes of para12 graph (1)(A), an individual bears a relationship to 

13 the taxpayer described in this paragraph if the indi14 vidual is any of the following with respect to the tax15 payer: 

16 ‘‘(A) A child or a descendant of a child. 

17 ‘‘(B) A brother, sister, stepbrother, or 

18 stepsister. 

19 ‘‘(C) The father or mother, or an ancestor 

20 of either. 

21 ‘‘(D) A stepfather or stepmother. 

22 ‘‘(E) A son or daughter of a brother or sis23 ter of the taxpayer. 

24 ‘‘(F) A brother or sister of the father or 

25 mother of the taxpayer. 
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1 ‘‘(G) A son-in-law, daughter-in-law, father2 in-law, mother-in-law, brother-in-law, or sister3 in-law. 

4 ‘‘(H) An individual (other than an indi5 vidual who at any time during the taxable year 

6 was the spouse, determined without regard to 

7 section 7703, of the taxpayer) who, for the tax8 able year of the taxpayer, has as such individ9 ual’s principal place of abode the home of the 

10 taxpayer and is a member of the taxpayer’s 

11 household. 

12 ‘‘(3) SPECIAL RULE RELATING TO MULTIPLE

13 SUPPORT AGREEMENTS.—For purposes of paragraph 

14 (1)(C), over one-half of the support of an individual 

15 for a calendar year shall be treated as received from 

16 the taxpayer if—

17 ‘‘(A) no one person contributed over one18 half of such support, 

19 ‘‘(B) over one-half of such support was re20 ceived from 2 or more persons each of whom, 

21 but for the fact that any such person alone did

22 not contribute over one-half of such support, 

23 would have been entitled to claim such indi24 vidual as a dependent for a taxable year begin25 ning in such calendar year, 
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1 ‘‘(C) the taxpayer contributed over 10 per2 cent of such support, and 

3 ‘‘(D) each person described in subpara4 graph (B) (other than the taxpayer) who con5 tributed over 10 percent of such support files a 

6 written declaration (in such manner and form 

7 as the Secretary may by regulations prescribe) 

8 that such person will not claim such individual 

9 as a dependent for any taxable year beginning 

10 in such calendar year. 

11 ‘‘(4) SPECIAL RULE RELATING TO INCOME OF

12 HANDICAPPED DEPENDENTS.—

13 ‘‘(A) IN GENERAL.—For purposes of para14 graph (1)(B), the gross income of an individual 

15 who is permanently and totally disabled (as de16 fined in section 22(e)(3)) at any time during 

17 the taxable year shall not include income attrib18 utable to services performed by the individual 

19 at a sheltered workshop if—

20 ‘‘(i) the availability of medical care at 

21 such workshop is the principal reason for 

22 the individual’s presence there, and 

23 ‘‘(ii) the income arises solely from ac24 tivities at such workshop which are inci25 dent to such medical care. 
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1 ‘‘(B) SHELTERED WORKSHOP DEFINED.—

2 For purposes of subparagraph (A), the term 

3 ‘sheltered workshop’ means a school—

4 ‘‘(i) which provides special instruction 

5 or training designed to alleviate the dis6 ability of the individual, and 

7 ‘‘(ii) which is operated by an organi8 zation described in section 501(c)(3) and 

9 exempt from tax under section 501(a), or 

10 by a State, a possession of the United 

11 States, any political subdivision of any of 

12 the foregoing, the United States, or the 

13 District of Columbia. 

14 ‘‘(5) SPECIAL SUPPORT TEST IN CASE OF STU15 DENTS.—For purposes of paragraph (1)(C), in the 

16 case of an individual who is—

17 ‘‘(A) a child of the taxpayer, and 

18 ‘‘(B) a student, 

19 amounts received as scholarships for study at an 

20 educational organization described in section 

21 170(b)(1)(A)(ii) shall not be taken into account in 

22 determining whether such individual received more 

23 than one-half of such individual’s support from the 

24 taxpayer. 
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1 ‘‘(6) SPECIAL RULES FOR SUPPORT.—For pur2 poses of this subsection—

3 ‘‘(A) payments to a spouse which are in4 cludible in the gross income of such spouse 

5 under section 71 or 682 shall not be treated as 

6 a payment by the payor spouse for the support 

7 of any dependent, 

8 ‘‘(B) amounts expended for the support of 

9 a child or children shall be treated as received 

10 from the noncustodial parent (as defined in 

11 subsection (e)(3)(B)) to the extent that such 

12 parent provided amounts for such support, and 

13 ‘‘(C) in the case of the remarriage of a 

14 parent, support of a child received from the 

15 parent’s spouse shall be treated as received 

16 from the parent. 

17 ‘‘(e) SPECIAL RULE FOR DIVORCED PARENTS.—

18 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

19 (c)(4) or (d)(1)(C), if—

20 ‘‘(A) a child receives over one-half of the 

21 child’s support during the calendar year from 

22 the child’s parents—

23 ‘‘(i) who are divorced or legally sepa24 rated under a decree of divorce or separate 

25 maintenance, 
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1 ‘‘(ii) who are separated under a writ2 ten separation agreement, or 

3 ‘‘(iii) who live apart at all times dur4 ing the last 6 months of the calendar year, 

5 and 

6 ‘‘(B) such child is in the custody of 1 or 

both of the child’s parents for more than 1 7 ⁄2 of 

8 the calendar year, 

9 such child shall be treated as being the qualifying 

10 child or qualifying relative of the noncustodial par11 ent for a calendar year if the requirements described 

12 in paragraph (2) are met. 

13 ‘‘(2) REQUIREMENTS.—For purposes of para14 graph (1), the requirements described in this para15 graph are met if—

16 ‘‘(A) a decree of divorce or separate main17 tenance or written separation agreement be18 tween the parents applicable to the taxable year 

19 beginning in such calendar year provides that—

20 ‘‘(i) the noncustodial parent shall be 

21 entitled to any deduction allowable under 

22 section 151 for such child, or 

23 ‘‘(ii) the custodial parent will sign a 

24 written declaration (in such manner and 

25 form as the Secretary may prescribe) that 
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1 such parent will not claim such child as a 

2 dependent for such taxable year, and 

3 ‘‘(B) in the case of such an agreement exe4 cuted before January 1, 1985, the noncustodial 

5 parent provides at least $600 for the support of 

6 such child during such calendar year. 

7 ‘‘(3) CUSTODIAL PARENT AND NONCUSTODIAL

8 PARENT.—For purposes of this subsection—

9 ‘‘(A) CUSTODIAL PARENT.—The term ‘cus10 todial parent’ means the parent with whom a 

11 child shared the same principal place of abode 

12 for the greater portion of the calendar year. 

13 ‘‘(B) NONCUSTODIAL PARENT.—The term 

14 ‘noncustodial parent’ means the parent who is 

15 not the custodial parent. 

16 ‘‘(4) EXCEPTION FOR MULTIPLE-SUPPORT

17 AGREEMENTS.—This subsection shall not apply in 

18 any case where over one-half of the support of the

19 child is treated as having been received from a tax20 payer under the provision of subsection (d)(3). 

21 ‘‘(f) OTHER DEFINITIONS AND RULES.—For pur22 poses of this section—

23 ‘‘(1) CHILD DEFINED.—

24 ‘‘(A) IN GENERAL.—The term ‘child’ 

25 means an individual who is—
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1 ‘‘(i) a son, daughter, stepson, or step2 daughter of the taxpayer, or 

3 ‘‘(ii) an eligible foster child of the tax4 payer. 

5 ‘‘(B) ADOPTED CHILD.—In determining 

6 whether any of the relationships specified in 

7 subparagraph (A)(i) or paragraph (4) exists, a 

8 legally adopted individual of the taxpayer, or an 

9 individual who is placed with the taxpayer by 

10 an authorized placement agency for adoption by 

11 the taxpayer, shall be treated as a child of such 

12 individual by blood. 

13 ‘‘(C) ELIGIBLE FOSTER CHILD.—For pur14 poses of subparagraph (A)(ii), the term ‘eligible 

15 foster child’ means an individual who is placed 

16 with the taxpayer by an authorized placement 

17 agency or by judgment, decree, or other order 

18 of any court of competent jurisdiction. 

19 ‘‘(2) STUDENT DEFINED.—The term ‘student’ 

20 means an individual who during each of 5 calendar 

21 months during the calendar year in which the tax22 able year of the taxpayer begins—

23 ‘‘(A) is a full-time student at an edu24 cational organization described in section 

25 170(b)(1)(A)(ii), or 
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1 ‘‘(B) is pursuing a full-time course of insti2 tutional on-farm training under the supervision 

3 of an accredited agent of an educational organi4 zation described in section 170(b)(1)(A)(ii) or 

5 of a State or political subdivision of a State. 

6 ‘‘(3) PLACE OF ABODE.—An individual shall 

7 not be treated as having the same principal place of 

8 abode of the taxpayer if at any time during the tax9 able year of the taxpayer the relationship between 

10 the individual and the taxpayer is in violation of 

11 local law. 

12 ‘‘(4) BROTHER AND SISTER.—The terms 

13 ‘brother’ and ‘sister’ include a brother or sister by 

14 the half blood. 

15 ‘‘(5) TREATMENT OF MISSING CHILDREN.—

16 ‘‘(A) IN GENERAL.—Solely for the pur17 poses referred to in subparagraph (B), a child 

18 of the taxpayer—

19 ‘‘(i) who is presumed by law enforce20 ment authorities to have been kidnapped 

21 by someone who is not a member of the 

22 family of such child or the taxpayer, and 

23 ‘‘(ii) who had, for the taxable year in 

24 which the kidnapping occurred, the same 

25 principal place of abode as the taxpayer for 
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1 more than one-half of the portion of such 

2 year before the date of the kidnapping, 

3 shall be treated as meeting the requirement of 

4 subsection (c)(1)(B) with respect to a taxpayer 

5 for all taxable years ending during the period 

6 that the individual is kidnapped. 

7 ‘‘(B) PURPOSES.—Subparagraph (A) shall 

8 apply solely for purposes of determining—

9 ‘‘(i) the deduction under section 

10 151(c), 

11 ‘‘(ii) the credit under section 24 (re12 lating to child tax credit), 

13 ‘‘(iii) whether an individual is a sur14 viving spouse or a head of a household (as 

15 such terms are defined in section 2), and 

16 ‘‘(iv) the earned income credit under 

17 section 32. 

18 ‘‘(C) COMPARABLE TREATMENT OF CER19 TAIN QUALIFYING RELATIVES.—For purposes 

20 of this section, a child of the taxpayer—

21 ‘‘(i) who is presumed by law enforce22 ment authorities to have been kidnapped 

23 by someone who is not a member of the 

24 family of such child or the taxpayer, and 
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1 ‘‘(ii) who was (without regard to this 

2 paragraph) a qualifying relative of the tax3 payer for the portion of the taxable year 

4 before the date of the kidnapping, 

5 shall be treated as a qualifying relative of the 

6 taxpayer for all taxable years ending during the 

7 period that the child is kidnapped. 

8 ‘‘(D) TERMINATION OF TREATMENT.—

9 Subparagraphs (A) and (C) shall cease to apply 

10 as of the first taxable year of the taxpayer be11 ginning after the calendar year in which there 

12 is a determination that the child is dead (or, if 

13 earlier, in which the child would have attained 

14 age 18). 

15 ‘‘(6) CROSS REFERENCES.—

‘‘For provision treating child as dependent of both 

parents for purposes of certain provisions, see sections 105(b), 132(h)(2)(B), and 213(d)(5).’’.

16 SEC. 202. MODIFICATIONS OF DEFINITION OF HEAD OF 

17 HOUSEHOLD. 

18 (a) HEAD OF HOUSEHOLD.—Clause (i) of section 

19 2(b)(1)(A) of the Internal Revenue Code of 1986 is 

20 amended to read as follows: 

21 ‘‘(i) a qualifying child of the indi22 vidual (as defined in section 152(c), deter23 mined without regard to section 152(e)), 

24 but not if such child—
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1 ‘‘(I) is married at the close of the 

2 taxpayer’s taxable year, and 

3 ‘‘(II) is not a dependent of such 

4 individual by reason of section 

5 152(b)(2) or 152(b)3), or both, or’’. 

6 (b) CONFORMING AMENDMENTS.—

7 (1) Section 2(b)(2) of the Internal Revenue 

8 Code of 1986 is amended by striking subparagraph 

9 (A) and by redesignating subparagraphs (B), (C), 

10 and (D) as subparagraphs (A), (B), and (C), respec11 tively. 

12 (2) Clauses (i) and (ii) of section 2(b)(3)(B) of 

13 such Code are amended to read as follows:

14 ‘‘(i) subparagraph (H) of section 

15 152(d)(2), or 

16 ‘‘(ii) paragraph (3) of section 

17 152(d).’’. 

18 SEC. 203. MODIFICATIONS OF DEPENDENT CARE CREDIT. 

19 (a) IN GENERAL.—Section 21(a)(1) of the Internal 

20 Revenue Code of 1986 is amended by striking ‘‘In the case 

21 of an individual who maintains a household which includes 

22 as a member one or more qualifying individuals (as de23 fined in subsection (b)(1))’’ and inserting ‘‘In the case of 

24 an individual for which there are 1 or more qualifying indi-
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1 viduals (as defined in subsection (b)(1)) with respect to 

2 such individual’’. 

3 (b) QUALIFYING INDIVIDUAL.—Paragraph (1) of sec4 tion 21(b) of the Internal Revenue Code of 1986 is amend5 ed to read as follows: 

6 ‘‘(1) QUALIFYING INDIVIDUAL.—The term 

7 ‘qualifying individual’ means—

8 ‘‘(A) a dependent of the taxpayer (as de9 fined in section 152(a)(1)) who has not attained 

10 age 13, 

11 ‘‘(B) a dependent of the taxpayer who is 

12 physically or mentally incapable of caring for 

13 himself or herself and who has the same prin14 cipal place of abode as the taxpayer for more 

15 than one-half of such taxable year, or 

16 ‘‘(C) the spouse of the taxpayer, if the 

17 spouse is physically or mentally incapable of 

18 caring for himself or herself and who has the 

19 same principal place of abode as the taxpayer 

20 for more than one-half of such taxable year.’’. 

21 (c) CONFORMING AMENDMENT.—Paragraph (1) of 

22 section 21(e) of the Internal Revenue Code of 1986 is 

23 amended to read as follows: 

24 ‘‘(1) PLACE OF ABODE.—An individual shall 

25 not be treated as having the same principal place of 
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1 abode of the taxpayer if at any time during the tax2 able year of the taxpayer the relationship between 

3 the individual and the taxpayer is in violation of 

4 local law.’’. 

5 SEC. 204. MODIFICATIONS OF CHILD TAX CREDIT. 

6 (a) IN GENERAL.—Paragraph (1) of section 24(c) of 

7 the Internal Revenue Code of 1986 is amended to read 

8 as follows: 

9 ‘‘(1) IN GENERAL.—The term ‘qualifying child’ 

10 means a qualifying child of the taxpayer (as defined 

11 in section 152(c)) who has not attained age 17.’’. 

12 (b) CONFORMING AMENDMENT.—Section 24(c)(2) of 

13 the Internal Revenue Code of 1986 is amended by striking 

14 ‘‘the first sentence of section 152(b)(3)’’ and inserting 

15 ‘‘subparagraph (A) of section 152(b)(3)’’. 

16 SEC. 205. MODIFICATIONS OF EARNED INCOME CREDIT. 

17 (a) QUALIFYING CHILD.—Paragraph (3) of section 

18 32(c) of the Internal Revenue Code of 1986 is amended 

19 to read as follows: 

20 ‘‘(3) QUALIFYING CHILD.—

21 ‘‘(A) IN GENERAL.—The term ‘qualifying 

22 child’ means a qualifying child of the taxpayer 

23 (as defined in section 152(c), determined with24 out regard to paragraph (1)(D) thereof and sec25 tion 152(e)). 
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1 ‘‘(B) MARRIED INDIVIDUAL.—The term 

2 ‘qualifying child’ shall not include an individual 

3 who is married as of the close of the taxpayer’s 

4 taxable year unless the taxpayer is entitled to 

5 a deduction under section 151 for such taxable 

6 year with respect to such individual (or would 

7 be so entitled but for section 152(e)). 

8 ‘‘(C) PLACE OF ABODE.—For purposes of 

9 subparagraph (A), the requirements of section 

10 152(c)(1)(B) shall be met only if the principal 

11 place of abode is in the United States. 

12 ‘‘(D) IDENTIFICATION REQUIREMENTS.—

13 ‘‘(i) IN GENERAL.—A qualifying child 

14 shall not be taken into account under sub15 section (b) unless the taxpayer includes the 

16 name, age, and TIN of the qualifying child 

17 on the return of tax for the taxable year. 

18 ‘‘(ii) OTHER METHODS.—The Sec19 retary may prescribe other methods for 

20 providing the information described in 

21 clause (i).’’. 

22 (b) CONFORMING AMENDMENTS.—

23 (1) Section 32(c)(1) of the Internal Revenue 

24 Code of 1986 is amended by striking subparagraph 

25 (C) and by redesignating subparagraphs (D), (E), 
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1 (F), and (G) as subparagraphs (C), (D), (E), and 

2 (F), respectively. 

3 (2) Section 32(c)(4) of such Code is amended 

4 by striking ‘‘(3)(E)’’ and inserting ‘‘(3)(C)’’. 

5 (3) Section 32(m) of such Code is amended by 

6 striking ‘‘subsections (c)(1)(F)’’ and inserting ‘‘sub7 sections (c)(1)(E)’’. 

8 SEC. 206. MODIFICATIONS OF DEDUCTION FOR PERSONAL 

9 EXEMPTION FOR DEPENDENTS. 

10 Subsection (c) of section 151 of the Internal Revenue 

11 Code of 1986 is amended to read as follows: 

12 ‘‘(c) ADDITIONAL EXEMPTION FOR DEPENDENTS.—

13 An exemption of the exemption amount for each individual 

14 who is a dependent (as defined in section 152) of the tax15 payer for the taxable year.’’. 

16 SEC. 207. TECHNICAL AND CONFORMING AMENDMENTS. 

17 (1) Section 2(a)(1)(B)(i) of such Code is 

18 amended by inserting ‘‘, determined without regard 

19 to subsections (b)(1), (b)(2), and (d)(1)(B) thereof’’ 

20 after ‘‘section 152’’. 

21 (2) Section 21(e)(5) of the Internal Revenue 

22 Code of 1986 is amended—

23 (A) by striking ‘‘paragraph (2) or (4) of’’ 

24 in subparagraph (A), and 
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1 (B) by striking ‘‘within the meaning of sec2 tion 152(e)(1)’’ and inserting ‘‘as defined in 

3 section 152(e)(3)(A)’’. 

4 (3) Section 21(e)(6)(B) of such Code is amend5 ed by striking ‘‘section 151(c)(3)’’ and inserting 

6 ‘‘section 152(f)(1)’’. 

7 (4) Section 25B(c)(2)(B) of such Code is 

8 amended by striking ‘‘151(c)(4)’’ and inserting 

9 ‘‘152(f)(2)’’. 

10 (5)(A) Subparagraphs (A) and (B) of section 

11 51(i)(1) of such Code are each amended by striking 

12 ‘‘paragraphs (1) through (8) of section 152(a)’’ both

13 places it appears and inserting ‘‘subparagraphs (A) 

14 through (G) of section 152(d)(2)’’. 

15 (B) Section 51(i)(1)(C) of such Code is amend16 ed by striking ‘‘152(a)(9)’’ and inserting 

17 ‘‘152(d)(2)(H)’’. 

18 (6) Section 72(t)(2)(D)(i)(III) of such Code is 

19 amended by inserting ‘‘, determined without regard 

20 to subsections (b)(1), (b)(2), and (d)(1)(B) thereof’’ 

21 after ‘‘section 152’’. 

22 (7) Section 72(t)(7)(A)(iii) of such Code is 

23 amended by striking ‘‘151(c)(3)’’ and inserting 

24 ‘‘152(f)(1)’’. 
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1 (8) Section 42(i)(3)(D)(ii)(I) of such Code is 

2 amended by inserting ‘‘, determined without regard 

3 to subsections (b)(1), (b)(2), and (d)(1)(B) thereof’’ 

4 after ‘‘section 152’’. 

5 (9) Subsections (b) and (c)(1) of section 105 of 

6 such Code are amended by inserting ‘‘, determined 

7 without regard to subsections (b)(1), (b)(2), and 

8 (d)(1)(B) thereof’’ after ‘‘section 152’’. 

9 (10) Section 120(d)(4) of such Code is amend10 ed by inserting ‘‘(determined without regard to sub11 sections (b)(1), (b)(2), and (d)(1)(B) thereof)’’ after 

12 ‘‘section 152’’. 

13 (11) Section 125(e)(1)(D) of such Code is 

14 amended by inserting ‘‘, determined without regard 

15 to subsections (b)(1), (b)(2), and (d)(1)(B) thereof’’ 

16 after ‘‘section 152’’. 

17 (12) Section 129(c)(2) of such Code is amended 

18 by striking ‘‘151(c)(3)’’ and inserting ‘‘152(f)(1)’’. 

19 (13) The first sentence of section 132(h)(2)(B) 

20 of such Code is amended by striking ‘‘151(c)(3)’’ 

21 and inserting ‘‘152(f)(1)’’. 

22 (14) Section 153 of such Code is amended by 

23 striking paragraph (1) and by redesignating para24 graphs (2), (3), and (4) as paragraphs (1), (2), and 

25 (3), respectively. 
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1 (15) Section 170(g)(1) of such Code is amend2 ed by inserting ‘‘(determined without regard to sub3 sections (b)(1), (b)(2), and (d)(1)(B) thereof)’’ after 

4 ‘‘section 152’’. 

5 (16) Section 170(g)(3) of such Code is amend6 ed by striking ‘‘paragraphs (1) through (8) of sec7 tion 152(a)’’ and inserting ‘‘subparagraphs (A) 

8 through (G) of section 152(d)(2)’’. 

9 (17) Section 213(a) of such Code is amended 

10 by inserting ‘‘, determined without regard to sub11 sections (b)(1), (b)(2), and (d)(1)(B) thereof’’ after 

12 ‘‘section 152’’. 

13 (18) The second sentence of section 213(d)(11) 

14 of such Code is amended by striking ‘‘paragraphs 

15 (1) through (8) of section 152(a)’’ and inserting 

16 ‘‘subparagraphs (A) through (G) of section 

17 152(d)(2)’’. 

18 (19) Section 220(d)(2)(A) of such Code is 

19 amended by inserting ‘‘, determined without regard 

20 to subsections (b)(1), (b)(2), and (d)(1)(B) thereof’’ 

21 after ‘‘section 152’’. 

22 (20) Section 221(d)(4) of such Code is amend23 ed by inserting ‘‘(determined without regard to sub24 sections (b)(1), (b)(2), and (d)(1)(B) thereof)’’ after 

25 ‘‘section 152’’. 
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1 (21) Section 529(e)(2)(B) of such Code is 

2 amended by striking ‘‘paragraphs (1) through (8) of 

3 section 152(a)’’ and inserting ‘‘subparagraphs (A) 

4 through (G) of section 152(d)(2)’’. 

5 (22) Section 2032A(c)(7)(D) of such Code is 

6 amended by striking ‘‘section 151(c)(4)’’ and insert7 ing ‘‘section 152(f)(2)’’. 

8 (23) Section 2057(d)(2)(B) of such Code is 

9 amended by inserting ‘‘, determined without regard 

10 to subsections (b)(1), (b)(2), and (d)(1)(B) thereof’’ 

11 after ‘‘section 152’’. 

12 (24) Section 7701(a)(17) of such Code is 

13 amended by striking ‘‘152(b)(4), 682,’’ and inserting 

14 ‘‘682’’. 

15 (25) Section 7702B(f)(2)(C)(iii) of such Code is 

16 amended by striking ‘‘paragraphs (1) through (8) of 

17 section 152(a)’’ and inserting ‘‘subparagraphs (A) 

18 through (G) of section 152(d)(2)’’. 

19 (26) Section 7703(b)(1) of such Code is amend20 ed—

21 (A) by striking ‘‘151(c)(3)’’ and inserting 

22 ‘‘152(f)(1)’’, and 

23 (B) by striking ‘‘paragraph (2) or (4) of’’. 
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1 SEC. 208. EFFECTIVE DATE. 

2 The amendments made by this title shall apply to tax3 able years beginning after December 31, 2003. 

4 TITLE III—CUSTOMS USER FEES 

5 SEC. 301. EXTENSION OF CUSTOMS USER FEES. 

6 Section 13031(j)(3) of the Consolidated Omnibus 

7 Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) 

8 is amended by striking ‘‘September 30, 2003’’ and insert9 ing ‘‘March 31, 2010’’.

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