COMPARISON OF PROVISIONS CONTAINED IN H.R. 1308,

THE “ALL-AMERICAN TAX RELIEF ACT OF 2003,”AS PASSED BY THE

HOUSE OF REPRESENTATIVES ON JUNE 12, 2003, AND H.R. 1308,

THE “RELIEF FOR WORKING FAMILIES TAX ACT OF 2003,”

AS PASSED BY THE SENATE ON JUNE 5, 2003

Prepared by the Staff of the

JOINT COMMITTEE ON TAXATION

September 21, 2004

JCX-57-04
ii

Contents

Page

INTRODUCTION ...................................................................................................................................................................................... 1

I. ACCELERATION OF PREVIOUSLY ENACTED TAX REDUCTION.............................................................................................. 2

A. Child Tax Credit (sec. 101 of the House bill and secs. 101, 102, and 103 of the Senate amendment).......................................... 2

II. PROVISIONS RELATING TO MILITARY PERSONNEL (secs. 201-208, 301, and 401 of the House bill) .................................... 4

III. OTHER PROVISIONS......................................................................................................................................................................... 5

A. Establish Uniform Definition of a Qualifying Child (secs. 201-208 of the Senate amendment)................................................... 5

IV. REVENUE PROVISIONS................................................................................................................................................................... 7

A. Extension of Customs User Fees (sec. 301 of the Senate amendment).......................................................................................... 7
1

INTRODUCTION

H.R. 1308 (the “Tax Relief, Simplification and Equity Act of 2003”) originally passed the House of Representatives on March 

19, 2003. H.R. 1308, as amended and as renamed the “Relief for Working Families Tax Act of 2003,” passed the Senate on June 5, 

2003. H.R. 1308, as further amended and as renamed the “All-American Tax Relief Act of 2003,” passed the House on June 12, 2003. 

Both the Relief for Working Families Tax Act of 2003 as passed by the Senate and the All-American Tax Relief Act of 2003 as passed 

by the House modify the child tax credit and make other changes to the Internal Revenue Code.

This document,1 prepared by the staff of the Joint Committee on Taxation, presents a side-by-side comparison of the 

provisions in the most recently passed versions of the House and Senate bills. The House bill refers to those provisions contained in 

the House bill, as further amended, passed by the House on June 12, 2003. The Senate amendment refers to those provisions 

contained in the bill, as amended, passed by the Senate on June 5, 2003.

 

1

 This document may be cited as follows: Joint Committee on Taxation, Comparison of Provisions Contained in H.R. 1308, 

the “All-American Tax Relief Act of 2003,”as passed by the House of Representatives on June 12, 2003, and H.R. 1308, the “Relief

for Working Families Tax Act of 2003” as passed by the Senate on June 5, 2003 (JCX-57-04), September 21, 2004. 
2

Item Present Law House Bill Senate Amendment

I. ACCELERATION OF 

PREVIOUSLY ENACTED TAX 

REDUCTION

A. Child Tax Credit (sec. 101 of 

the House bill and secs. 101, 102, 

and 103 of the Senate 

amendment)

Amount of credit.–The amount of 

the child credit is $1,000 for 2004. 

The aggregate amount of child 

credits is phased out by $50 for 

each $1,000 (or fraction thereof) of 

adjusted gross income in excess of 

$75,000 ($110,000 in the case of a 

joint return and $55,000 in the case 

of a married individual filing 

separately).

After 2004, the child credit reverts 

to the levels provided under 

EGTRRA. For 2005-2008, the 

child credit will be $700, 

increasing to $800 for 2009 and 

$1,000 in 2010.

The child credit reverts to $500 in 

taxable years beginning after 

December 31, 2010, under the 

sunset provision of EGTRRA. 

Refundability.–For 2004, the child 

credit is refundable to the extent of 

10 percent of the taxpayer’s earned 

income in excess of $10,750. This 

amount is indexed for inflation. 

The percentage is increased to 15 

percent for taxable years 2005 and 

Amount of credit.–The amount of 

the child credit is increased to 

$1,000 for 2005 through 2009. 

The phase-out threshold for 

married taxpayers filing jointly is 

raised to twice that of single filers, 

i.e., $150,000 ($75,000 in the case 

of a married individual filing a 

separate return).

The sunset provision of EGTRRA 

continues to apply. 

Refundability.–The 15-percent 

refundability percentage is 

accelerated to apply to taxable 

years beginning after December 

31, 2002.

Amount of credit.–The beginning 

point of the phase-out range for the 

child credit is increased to 

$115,000 in 2008 and 2009 and to 

$150,000 in 2010 for married 

individuals filing joint returns. 

The beginning point for such 

phase-out range in the case of 

unmarried individuals and married 

individuals filing separately is onehalf of the beginning point of the 

phase-out range for married 

individuals filing joint returns for 

taxable years beginning in 2008 

through 2010. 

Same as the House bill.

Refundability.–The 15-percent 

refundability percentage is 

accelerated to apply to taxable 

years beginning after December 

31, 2002.
3

Item Present Law House Bill Senate Amendment

thereafter. Families with three or 

more children are allowed a 

refundable credit for the amount 

by which the taxpayer’s social 

security taxes exceed the 

taxpayer’s earned income credit, if 

that amount is greater than the 

refundable credit based on the 

taxpayer’s earned income in excess 

of $10,750 (for 2004).

For taxable years beginning after 

December 31, 2010, under the 

sunset provision of EGTRRA, the 

method of calculating refundability 

based on earned income expires.

The sunset provision of EGTRRA 

continues to apply.

Effective date.–Taxable years 

beginning after December 31, 

2002.

Taxpayers eligible for the 15-

percent additional refundable child 

credit amount will receive this 

additional amount in the same 

manner as other taxpayers 

receiving advance payments under 

the Jobs and Growth Tax Relief 

Reconciliation Act of 2003.

Any amount excluded from gross 

income under section 112 of the 

Code (relating to certain combat 

zone compensation) is treated as 

earned income for purposes of the 

calculation of the child tax credit. 

Same as the House bill.

Effective date.–Generally, taxable 

years beginning after December 

31, 2002.
4

Item Present Law House Bill Senate Amendment

II. PROVISIONS RELATING 

TO MILITARY PERSONNEL 

(secs. 201-208, 301, and 401 of 

the House bill) 

Present law includes various 

targeted tax provisions relating to 

military personnel. 

Includes several specific 

provisions to improve tax equity

for military personnel.

These provisions were separately 

enacted subsequent to the passage 

of the House bill. These 

provisions are contained in: “The 

Military Tax Relief Act of 2003” 

(Pub. L. No. 108-121). 

No provision. See description of 

the House bill.
5

Item Present Law House Bill Senate Amendment

III. OTHER PROVISIONS 

A. Establish Uniform Definition

of a Qualifying Child (secs. 201-

208 of the Senate amendment)

Present law provides familyrelated tax benefits for taxpayers 

who satisfy various requirements 

with respect to a child. The 

qualification of a child generally 

differs for the dependency 

exemption, the child credit, the 

earned income credit, the 

dependent care credit, and head of 

household filing status. In general, 

each provision requires that the 

child satisfy certain age and 

relationship requirements that 

differ for the various benefits. 

Some provisions require that the 

taxpayer provide over half of the 

child’s support in order to qualify 

for the tax benefit, others require 

satisfaction of a residency test 

rather than a support test, and 

others require the taxpayer to 

satisfy a household maintenance 

test. An unmarried taxpayer 

generally may file as a head of 

household (rather than as single) if 

the taxpayer resides with a son, 

daughter, stepson, stepdaughter, or 

grandchild, and provides over half 

the cost of maintaining the 

household, regardless of whether 

the child or grandchild is a 

dependent of the taxpayer.

No provision. Establishes a uniform definition of 

qualifying child for purposes of the 

dependency exemption, child 

credit, earned income credit, 

dependent care credit, and head of 

household filing status. Under this 

definition, a child is a qualifying 

child of the taxpayer if the child 

satisfies three tests: (1) the child 

has not yet attained a specified 

age; (2) the child has a specified 

relationship to the taxpayer; and 

(3) the child has the same principal 

place of abode as the taxpayer for 

more than half the taxable year. 

Retains present-law age rule 

differences for the various 

benefits, establishes a uniform 

relationship test for the various 

benefits, and replaces the support 

test with a residency test. Child 

does not constitute a qualifying 

child (other than for the earned 

income credit) if the child provides 

over half of his or her own support. 

Retains present-law rule that 

permits a custodial parent to 

release the claim to a dependency 

exemption and the child credit to a 

noncustodial parent in the case of 

divorce or legal separation. 
6

Item Present Law House Bill Senate Amendment

Special rules apply for adopted and 

foster children, and for children of 

divorced or legally separated 

parents. A legally adopted 

individual of the taxpayer, or an 

individual who is placed with the 

taxpayer by an authorized 

placement agency for legal 

adoption by the taxpayer, is treated 

as a child by blood. A custodial 

parent is allowed to release the 

claim to a dependency exemption 

and the child credit to a 

noncustodial parent in the case of 

divorce or legal separation. 

A taxpayer generally may claim a 

dependency exemption for a child 

or other individual who does not 

meet the uniform definition of 

qualifying child with respect to 

any taxpayer if present-law 

dependency requirements are 

satisfied. An unmarried taxpayer 

may not claim head of household 

filing status with respect to a child 

over 18 (over 23 if a full time 

student) who may not be claimed 

by the taxpayer as a dependent 

(e.g., had gross income over the 

exemption amount or provided 

over half of his or her own 

support.) 

Effective date.–Taxable years 

beginning after December 31, 

2003. 
7

Item Present Law House Bill Senate Amendment

IV. REVENUE PROVISIONS

A. Extension of Customs User 

Fees (sec. 301 of the Senate 

amendment)

Section 13031 of the Consolidated 

Omnibus Budget Reconciliation 

Act of 1985, authorized the 

Secretary of the Treasury to collect 

certain service fees. Section 412 

of the Homeland Security Act of 

2002 authorized the Secretary of 

the Treasury to delegate such 

authority to the Secretary of 

Homeland Security. Subsequent to 

the passage of the Senate 

amendment, public law 108-121 

extended authorization for the 

collection of these fees through 

March 1, 2005.

No provision. Extends the fees authorized under 

the Consolidated Omnibus Budget 

Reconciliation Act of 1985 

through March 31, 2010.

Effective date.–Date of enactment.