I 

109TH CONGRESS 

1ST SESSION H. R. 1519

To help American families save, invest, and build a better future, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 6, 2005

Mr. LARSON of Connecticut (for himself and Mr. EMANUEL) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL

To help American families save, invest, and build a better 

future, 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 ‘‘Better Future for 

5 American Families Act’’. 

6 SEC. 2. MODIFICATIONS TO SAVER’S CREDIT. 

7 (a) SAVER’S CREDIT.—Section 25B of the Internal 

8 Revenue Code of 1986 is amended by striking the heading 

9 thereof and inserting ‘‘THE SAVER’S CREDIT’’. 
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1 (b) MODIFICATIONS TO APPLICABLE PERCENT2 AGE.—Subsection (b) of section 25B of the Internal Rev3 enue Code of 1986 is amended to read as follows: 

4 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

5 this section—

6 ‘‘(1) IN GENERAL.—The applicable percentage 

7 is 50 percent reduced (but not below zero) by 1 per8 centage point for each phaseout amount by which 

9 the taxpayer’s adjusted gross income for the taxable 

10 year exceeds the threshold amount. 

11 ‘‘(2) PHASEOUT AMOUNT; THRESHOLD

12 AMOUNT.—The phaseout amount and the threshold 

13 amount shall be determined as follows:

‘‘In the case of an individual filing: The phaseout amount is: 

The threshold amount 

is: 

A joint return ........................................... $400 ................................... $30,000

A head of household return ...................... $300 ................................... $22,500

Any other return ...................................... $200 ................................... $15,000.’’. 

14 (c) REPEAL OF TERMINATION.—Section 25B of the 

15 Internal Revenue Code of 1986 is amended by striking 

16 subsection (h). 

17 (d) CREDIT REFUNDABLE.—

18 (1) IN GENERAL.—Section 25B of the Internal 

19 Revenue Code of 1986, as amended by this Act, is 

20 hereby moved to subpart C of part IV of subchapter 

21 A of chapter 1 of such Code (relating to refundable 

22 credits) and inserted after section 35. 
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1 (2) CONFORMING AMENDMENTS.—

2 (A) Section 24(b)(3)(B) of such Code is 

3 amended by striking ‘‘sections 23 and 25B’’ 

4 and inserting ‘‘section 23’’. 

5 (B) Section 25(e)(1)(C) of such Code is 

6 amended by striking ‘‘25B,’’. 

7 (C) Section 26(a)(1) of such Code is 

8 amended by striking ‘‘sections 23, 24, and 

9 25B’’ and inserting ‘‘sections 23 and 24’’. 

10 (D) Section 25B of such Code, as moved 

11 by paragraph (1), is redesignated as section 36. 

12 (E) Section 904(h) of such Code is amend13 ed by striking ‘‘sections 23, 24, and 25B’’ and 

14 inserting ‘‘sections 23 and 24’’. 

15 (F) Section 1400C of such Code is amend16 ed by striking ‘‘sections 23, 24, and 25B’’ and 

17 inserting ‘‘section 23 and 24’’. 

18 (G) The table of sections for subpart C of 

19 part IV of subchapter A of chapter 1 of such 

20 Code is amended by striking the item relating 

21 to section 36 and inserting the following:

‘‘Sec. 36. The Saver’s Credit. 

‘‘Sec. 37. Overpayments of tax.’’.

22 (H) The table of sections for subpart A of 

23 part IV of such Code is amended by striking 

24 the item relating to section 25B. 
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1 (I) Section 1324(b)(2) of title 31, United 

2 States Code, is amended by inserting ‘‘, or en3 acted by the Better Future for American Fami4 lies Act’’ before the period at the end. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2004.

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