I 

109TH CONGRESS 

2D SESSION H. R. 5123 

To amend the Internal Revenue Code of 1986 to simplify and provide greater 

uniformity for child-related tax benefits and to eliminate the potential 

for abuse created by the uniform definition of child in the Working 

Families Tax Relief Act of 2004. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 6, 2006 

Mr. DOGGETT (for himself, Mr. RANGEL, Mr. STARK, Mr. LEVIN, Mr. 

MCDERMOTT, Mr. LEWIS of Georgia, Mr. MCNULTY, Mr. JEFFERSON, 

Mr. BECERRA, Mr. POMEROY, Mrs. JONES of Ohio, Mr. THOMPSON of 

California, Mr. LARSON of Connecticut, Mr. EMANUEL, Mr. ALLEN, Mr. 

CONYERS, Mr. GRIJALVA, Mr. HINCHEY, Ms. EDDIE BERNICE JOHNSON

of Texas, Mr. SHERMAN, Ms. SLAUGHTER, and Ms. SOLIS) 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 simplify 

and provide greater uniformity for child-related tax benefits and to eliminate the potential for abuse created 

by the uniform definition of child in the Working Families Tax Relief Act of 2004. 

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 ‘‘Tax Equity for Chil3 dren and the Working Poor Act of 2006’’. 

4 SEC. 2. REPEAL OF UNIFORM DEFINITION OF CHILD. 

5 (a) IN GENERAL.—Title II of the Working Families 

6 Tax Relief Act of 2004 (relating to uniform definition of 

7 child), and the amendments made by such title, and sec8 tion 404 of the Gulf Opportunity Zone Act of 2005, and 

9 the amendments made by such section, are hereby re10 pealed. 

11 (b) ADMINISTRATION OF INTERNAL REVENUE CODE

12 OF 1986.—The Internal Revenue Code of 1986 shall be 

13 applied and administered as if the provisions, and amend14 ments, specified in subsection (a) had never been enacted. 

15 (c) CONFORMING AMENDMENT.—Section 

16 1361(c)(1)(C) of such Code is amended by striking ‘‘any 

17 eligible foster child of an individual (within the meaning 

18 of section 152(f)(1)(C))’’ and inserting ‘‘any foster child 

19 (as defined in section 152(b)(2)) of an individual’’. 

20 (d) EFFECTIVE DATE.—This section shall apply to 

21 taxable years beginning after December 31, 2006. 

22 SEC. 3. SIMPLIFICATION OF AND UNIFORM RULES FOR 

23 CHILD-RELATED TAX BENEFITS. 

24 (a) WAIVER OF INCOME TEST FOR ALL YOUNG DE25 PENDENTS.—Subparagraph (B) of section 151(c)(1) of 

26 the Internal Revenue Code of 1986 (relating to general 


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1 rule for additional exemption for dependents), as amended 

2 by section 2 of this Act, is amended by striking ‘‘who is 

3 a child of the taxpayer and’’. 

4 (b) CHILD CREDIT.—Paragraph (1) of section 24(c) 

5 of such Code (defining qualifying child), as amended by 

6 section 2 of this Act, is amended to read as follows: 

7 ‘‘(1) QUALIFYING CHILD.—The term ‘qualifying 

8 child’ means any individual if— 

9 ‘‘(A) the taxpayer is allowed a deduction 

10 under section 151 with respect to such indi11 vidual for the taxable year, and 

12 ‘‘(B) such individual has not attained the 

13 age of 17 as of the close of the calendar year 

14 in which the taxable year of the taxpayer be15 gins.’’. 

16 (c) EARNED INCOME CREDIT.—Clause (i) of section 

17 32(c)(3)(B) of such Code (relating to general rule defining 

18 relationship test), as amended by section 2 of this Act, 

19 is amended by adding at the end the following flush sen20 tence: ‘‘An individual shall be treated as bearing a rela21 tionship to the taxpayer described in the preceding sen22 tence if the taxpayer is entitled to a deduction under sec23 tion 151(c) for such individual.’’. 

24 (d) CONFORMING AMENDMENTS.— 


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1 (1) Section 151(c) of such Code, as amended by 

2 section 2 of this Act, is amended by striking para3 graph (3). 

4 (2) Section 152(b)(2) of such Code, as amended 

5 by section 2 of this Act, is amended— 

6 (A) by striking ‘‘(if such child satisfies the 

7 requirements of subsection (a)(9) with respect 

8 to such individual)’’, and 

9 (B) by adding at the end the following new 

10 sentence: ‘‘For purposes of the preceding sen11 tence, the term ‘foster child’ means an indi12 vidual who is placed with the taxpayer by an 

13 authorized placement agency or by judgment, 

14 decree, or other order of any court of competent 

15 jurisdiction.’’. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2006. 

Æ 


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