I 

118TH CONGRESS 

1ST SESSION H. R. 5953 

To amend the Internal Revenue Code of 1986 to expand the earned income 

and child tax credits, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 12, 2023 

Mrs. SYKES introduced the following bill 

OCTOBER 25, 2023 

Referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to expand 

the earned income and child tax credits, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Lower Your Taxes Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Sense of Congress. 

Sec. 3. Expansion of earned income tax credit. 

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Sec. 4. Payments to taxpayers determined by treating State non-refundable 

earned income tax credits as refundable. 

Sec. 5. Establishment of refundable child tax credit with monthly advance payment. 

Sec. 6. Capital gains rates not applicable to certain high income taxpayers. 

Sec. 7. Increase in rates of certain corporate taxes. 

1 SEC. 2. SENSE OF CONGRESS. 

2 It is the sense of Congress that the net revenue de3 rived from this Act should be used to reduce the national 

4 deficit, to the extent thereof, and thereafter to reduce the 

5 national debt. 

6 SEC. 3. EXPANSION OF EARNED INCOME TAX CREDIT. 

7 (a) CREDIT PERCENTAGE.—The table contained in 

8 section 32(b)(1) of the Internal Revenue Code of 1986 is 

9 amended— 

10 (1) by striking ‘‘34’’ and inserting ‘‘68’’, 

11 (2) by striking ‘‘40’’ and inserting ‘‘80’’, 

12 (3) by striking ‘‘45’’ and inserting ‘‘90’’, and 

13 (4) by striking ‘‘7.65’’ in the column with the 

14 heading ‘‘The credit percentage is:’’ and inserting 

15 ‘‘35’’. 

16 (b) PHASEOUT PERCENTAGE.—The table contained 

17 in section 32(b)(1) of such Code is amended— 

18 (1) by striking ‘‘15.98’’ and inserting ‘‘7’’, 

19 (2) by striking ‘‘21.06’’ both places it appears 

20 and inserting ‘‘10’’, and 

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1 (3) by striking ‘‘7.65’’ in the column with the 

2 heading ‘‘The phaseout percentage is:’’ and inserting 

3 ‘‘7’’. 

4 (c) EARNED INCOME AMOUNT.—The table contained 

5 in section 32(b)(2)(A) of such Code is amended— 

6 (1) by striking ‘‘$6,330’’ and inserting 

7 ‘‘$19,000’’, 

8 (2) by striking ‘‘$8,890’’ and inserting 

9 ‘‘$27,000’’, and 

10 (3) by striking ‘‘$4,220’’ and inserting 

11 ‘‘$15,000’’. 

12 (d) PHASEOUT AMOUNT.— 

13 (1) IN GENERAL.—The table contained in sec14 tion 32(b)(2)(A) of such Code is amended— 

15 (A) by striking ‘‘$11,610’’ both places it 

16 appears and inserting ‘‘$30,000’’, and 

17 (B) by striking ‘‘$5,280’’ and inserting 

18 ‘‘$15,000’’. 

19 (2) JOINT RETURNS.—Section 32(b)(2)(B) of 

20 such Code is amended by striking ‘‘determined 

21 under subparagraph (A) shall be increased by 

22 $5,000’’ and inserting ‘‘twice the amount deter23 mined under subparagraph (A)’’. 

24 (3) INFLATION ADJUSTMENT.—Section 32(j) of 

25 such Code is amended to read as follows: 

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1 ‘‘(j) INFLATION ADJUSTMENTS.— 

2 ‘‘(1) EARNED INCOME AND PHASEOUT

3 AMOUNTS.— 

4 ‘‘(A) IN GENERAL.—In the case of any 

5 taxable year beginning after 2024, each of the 

6 dollar amounts in subsection (b)(2)(A) shall be 

7 increased by an amount equal to— 

8 ‘‘(i) such dollar mount, multiplied by 

9 ‘‘(ii) the GDP adjustment determined 

10 under subparagraph (B) for the calendar 

11 year in which the taxable year begins. 

12 ‘‘(B) GDP ADJUSTMENT.—For purposes 

13 of this paragraph, the term ‘GDP adjustment’ 

14 for any calendar year is the percentage (if any) 

15 by which— 

16 ‘‘(i) the per capita nominal gross do17 mestic product for the preceding calendar 

18 year (as determined by the Secretary), ex19 ceeds 

20 ‘‘(ii) the per capita nominal gross do21 mestic product for calendar year 2023 (as 

22 determined by the Secretary). 

23 ‘‘(C) ROUNDING.—If any dollar amount in 

24 subsection (b)(2)(A), after any increase under 

25 subparagraph (A), is not a multiple of $10, 

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1 such dollar amount shall be rounded to the 

2 nearest multiple of $10. 

3 ‘‘(2) EXCESSIVE INVESTMENT INCOME.— 

4 ‘‘(A) IN GENERAL.—In the case of any 

5 taxable year beginning after 2021, the dollar 

6 amount in subsection (i)(1) shall be increased 

7 by an amount equal to— 

8 ‘‘(i) such dollar amount, multiplied by 

9 ‘‘(ii) the cost-of-living adjustment de10 termined under section 1(f)(3) for the cal11 endar year in which the taxable year be12 gins, determined by substituting ‘calendar 

13 year 2020’ for ‘calendar year 2016’ in sub14 paragraph (A)(ii) thereof. 

15 ‘‘(B) ROUNDING.—If the dollar amount in 

16 subsection (i)(1), after any increase under sub17 paragraph (A), is not a multiple of $50, such 

18 dollar amount shall be rounded to the next low19 est multiple of $50.’’. 

20 (e) AGE LIMITATIONS.—Section 32(c)(1)(A)(ii)(II) of 

21 such Code is amended by striking ‘‘has attained age 25 

22 but not attained age 65’’ and inserting ‘‘has attained age 

23 18’’. 

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1 (f) NOTIFICATION OF TAXPAYERS BY TREASURY OF

2 POTENTIAL ELIGIBILITY FOR THE EARNED INCOME TAX

3 CREDIT.— 

4 (1) IN GENERAL.—With respect to taxable 

5 years beginning in calendar years after 2023, the 

6 Secretary shall establish a program to notify (wheth7 er by electronic means or otherwise) specified indi8 viduals that such individuals may be eligible for the 

9 earned income tax credit. 

10 (2) SPECIFIED INDIVIDUAL.—For purposes of 

11 this subsection, the term ‘‘specified individual’’ 

12 means any individual who— 

13 (A) based on information available to the 

14 Secretary related to the taxable year or the pre15 ceding taxable year, the Secretary determines is 

16 likely to be eligible for the earned income tax 

17 credit, and 

18 (B) either— 

19 (i) filed a return of tax for such tax20 able year and did not claim the earned in21 come tax credit, or 

22 (ii) did not (as of such determination) 

23 file a return of tax for such taxable year. 

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1 (3) SECRETARY.—For purposes of this sub2 section, the term ‘‘Secretary’’ means the Secretary 

3 of the Treasury or the Secretary’s delegate. 

4 (g) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2023. 

7 SEC. 4. PAYMENTS TO TAXPAYERS DETERMINED BY TREAT8 ING STATE NON-REFUNDABLE EARNED IN9 COME TAX CREDITS AS REFUNDABLE. 

10 (a) IN GENERAL.—The Secretary shall establish a 

11 program for making annual payments to eligible individ12 uals equal to the State refundable earned income tax cred13 it equivalency amount with respect to taxable years begin14 ning in calendar years after 2023. 

15 (b) ELIGIBLE INDIVIDUAL.—For purposes of this 

16 section— 

17 (1) IN GENERAL.—The term ‘‘eligible indi18 vidual’’ means any individual who is eligible for, and 

19 claims, a non-refundable earned income tax credit 

20 for a taxable year beginning after December 31, 

21 2023, under the income tax laws of an eligible State. 

22 (2) ELIGIBLE STATE.—The term ‘‘eligible 

23 State’’ means any State if— 

24 (A) the Secretary determines that such 

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1 ment of this Act, a non-refundable earned in2 come tax credit, and 

3 (B) such State enters into an agreement 

4 with the Secretary to provide the Secretary 

5 such information as the Secretary may require 

6 to administer this section. 

7 (3) NON-REFUNDABLE EARNED INCOME TAX

8 CREDIT.— 

9 (A) IN GENERAL.—The term ‘‘non-refund10 able earned income tax credit’’ means, with re11 spect to any State, a credit against the income 

12 tax imposed by such State which the Secretary 

13 has determined is based on the earned income 

14 of the taxpayer and which is limited to the tax 

15 liability of such taxpayer. 

16 (B) TREATMENT OF CERTAIN CREDIT

17 MODIFICATIONS.—A credit shall not be treated 

18 as a non-refundable earned income tax credit 

19 for any taxable year if the Secretary determines 

20 that such credit as in effect for such taxable 

21 year has been modified (relative to such credit 

22 as in effect on the date of the enactment of this 

23 Act) in manner which suggests that a signifi24 cant purpose of such modification was to inVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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1 crease the amount of payments made under this 

2 section. 

3 (C) TREATMENT OF CREDITS SCHEDULED

4 TO TERMINATE.—A credit shall not be treated 

5 as non-refundable earned income tax credit for 

6 any taxable year if such credit was not sched7 uled to be in effect for such taxable year under 

8 the income tax laws of the State as in effect on 

9 the date of the enactment of this Act. 

10 (c) STATE REFUNDABLE EARNED INCOME TAX

11 CREDIT EQUIVALENCY AMOUNT.—For purposes of this 

12 section, the term ‘‘State refundable earned income tax 

13 credit equivalency amount’’ means, with respect to any in14 dividual for any taxable year, the amount determined by 

15 the Secretary as being the excess (if any) of— 

16 (1) the amount of the non-refundable earned in17 come tax credit which would have been allowed to 

18 such individual for such taxable year if such credit 

19 were not limited based on the tax liability of the tax20 payer, over 

21 (2) the amount by which such individual’s State 

22 income tax liability would increase if such credit 

23 were not allowed (determined after taking into ac24 count all other income tax credits other than income 

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1 tax credits which constitute credits for the payment 

2 of tax). 

3 (d) PAYMENTS TREATED IN SAME MANNER AS RE4 FUNDABLE INCOME TAX CREDITS.—Except as otherwise 

5 provided by the Secretary, the program established under 

6 subsection (a) shall effectuate the payments described 

7 therein by deeming the amount of such payment as a pay8 ment of Federal income tax for purposes of the Internal 

9 Revenue Code of 1986. Any overpayment of tax attrib10 utable to such deemed payment shall be refunded by the 

11 Secretary as soon as practicable. For purposes of section 

12 1324 of title 31, United States Code, any such refund 

13 shall be treated in the same manner as a refund due from 

14 a credit provision referred to in subsection (b)(2) of such 

15 section. 

16 (e) SECRETARY.—For purposes of this section, the 

17 term ‘‘Secretary’’ means the Secretary of the Treasury or 

18 the Secretary’s delegate. 

19 SEC. 5. ESTABLISHMENT OF REFUNDABLE CHILD TAX 

20 CREDIT WITH MONTHLY ADVANCE PAYMENT. 

21 (a) IN GENERAL.—Subpart A of part IV of sub22 chapter A of chapter 1 of the Internal Revenue Code of 

23 1986 is amended by inserting after section 24 the fol24 lowing new sections: 

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1 ‘‘SEC. 24A. MONTHLY CHILD TAX CREDIT. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al3 lowed as a credit against the tax imposed by this chapter 

4 for the taxable year the sum of the monthly specified child 

5 allowances determined with respect to the taxpayer under 

6 subsection (b) for each calendar month during such tax7 able year. 

8 ‘‘(b) MONTHLY SPECIFIED CHILD ALLOWANCE.— 

9 ‘‘(1) IN GENERAL.—For purposes of this sec10 tion, the term ‘monthly specified child allowance’ 

11 means, with respect to any taxpayer for any cal12 endar month, the sum of— 

13 ‘‘(A) $300, with respect to each specified 

14 child of such taxpayer who will (as of the close 

15 of such month) have attained age 6, plus 

16 ‘‘(B) $350, with respect to each specified 

17 child of such taxpayer who will not (as of the 

18 close of such month) have attained age 6. 

19 ‘‘(2) LIMITATIONS BASED ON MODIFIED AD20 JUSTED GROSS INCOME.— 

21 ‘‘(A) INITIAL REDUCTION.—The monthly 

22 specified child allowance otherwise determined 

23 under paragraph (1) with respect to any tax24 payer for any calendar month shall be reduced 

(but not below zero) by 1 25 ⁄12 of 5 percent of the 

26 excess (if any) of the taxpayer’s modified adVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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1 justed gross income for the applicable taxable 

2 year over the initial threshold amount in effect 

3 for such applicable taxable year. 

4 ‘‘(B) LIMITATION ON INITIAL REDUC5 TION.—In the case of any calendar month be6 ginning before January 1, 2026, the amount of 

7 the reduction under subparagraph (A) shall not 

8 exceed the lesser of— 

9 ‘‘(i) the excess (if any) of— 

10 ‘‘(I) the monthly specified child 

11 allowance with respect to the taxpayer 

12 for such calendar month (determined 

13 without regard to this paragraph), 

14 over 

15 ‘‘(II) the amount which would be 

16 determined under subclause (I) if the 

17 dollar amounts in effect under sub18 paragraphs (A) and (B) of paragraph 

19 (1) were each equal to $166.67, or 

‘‘(ii) 1 20 ⁄12 of 5 percent of the excess of 

21 the secondary threshold amount over the 

22 initial threshold amount. 

23 ‘‘(C) SECONDARY REDUCTION.—In the 

24 case of any calendar month beginning before 

25 January 1, 2026, the monthly specified child alVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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1 lowance otherwise determined under paragraph 

2 (1) with respect to any taxpayer for such cal3 endar month (determined after the application 

4 of subparagraphs (A) and (B)) shall be reduced 

(but not below zero) by 1 5 ⁄12 of 5 percent of the 

6 excess (if any) of the taxpayer’s modified ad7 justed gross income for the applicable taxable 

8 year over the secondary threshold amount. 

9 ‘‘(D) DEFINITIONS RELATED TO LIMITA10 TIONS BASED ON MODIFIED ADJUSTED GROSS

11 INCOME.—For purposes of this paragraph— 

12 ‘‘(i) INITIAL THRESHOLD AMOUNT.— 

13 The term ‘initial threshold amount’ 

14 means— 

15 ‘‘(I) $150,000, in the case of a 

16 joint return or surviving spouse (as 

17 defined in section 2(a)), 

‘‘(II) 1 18 ⁄2 the dollar amount in ef19 fect under subclause (I), in the case of 

20 a married individual filing a separate 

21 return, and 

22 ‘‘(III) $112,500, in any other 

23 case. 

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1 ‘‘(ii) SECONDARY THRESHOLD

2 AMOUNT.—The term ‘secondary threshold 

3 amount’ means— 

4 ‘‘(I) $400,000, in the case of a 

5 joint return or surviving spouse (as 

6 defined in section 2(a)), 

7 ‘‘(II) $300,000, in the case of a 

8 head of household (as defined in sec9 tion 2(b)), and 

10 ‘‘(III) $200,000, in any other 

11 case. 

12 ‘‘(iii) APPLICABLE TAXABLE YEAR.— 

13 The term ‘applicable taxable year’ means, 

14 with respect to any taxable year for which 

15 the credit under this section is deter16 mined— 

17 ‘‘(I) such taxable year, or 

18 ‘‘(II) if the taxpayer elects the 

19 application of this subclause (at such 

20 time and in such form and manner as 

21 the Secretary may provide), the pre22 ceding taxable year or the second pre23 ceding taxable year (as specified in 

24 such election). 

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1 ‘‘(iv) MODIFIED ADJUSTED GROSS IN2 COME.—The term ‘modified adjusted gross 

3 income’ means adjusted gross income in4 creased by any amount excluded from 

5 gross income under section 911, 931, or 

6 933. 

7 ‘‘(3) INFLATION ADJUSTMENTS.— 

8 ‘‘(A) MONTHLY SPECIFIED CHILD ALLOW9 ANCE.—In the case of any month beginning 

10 after December 31, 2023, each dollar amount 

11 in paragraph (1) shall be increased by an 

12 amount equal to— 

13 ‘‘(i) such dollar amount, multiplied 

14 by— 

15 ‘‘(ii) the percentage (if any) by 

16 which— 

17 ‘‘(I) the CPI (as defined in sec18 tion 1(f)(4)) for the calendar year 

19 preceding the calendar year in which 

20 such month begins, exceeds 

21 ‘‘(II) the CPI (as so defined) for 

22 calendar year 2020. 

23 ‘‘(B) INITIAL THRESHOLD AMOUNT.—In 

24 the case of any taxable year beginning after De25 cember 31, 2023, the dollar amounts in subVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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1 clauses (I) and (III) of paragraph (2)(D)(i) 

2 shall each be increased by an amount equal 

3 to— 

4 ‘‘(i) such dollar amount, multiplied by 

5 ‘‘(ii) the percentage (if any) which 

6 would be determined under subparagraph 

7 (A)(ii) if subclause (II) thereof were ap8 plied by substituting ‘2022’ for ‘2020’. 

9 ‘‘(C) ROUNDING.— 

10 ‘‘(i) MONTHLY SPECIFIED CHILD AL11 LOWANCE.—Any increase under subpara12 graph (A) which is not a multiple of $10 

13 shall be rounded to the nearest multiple of 

14 $10. 

15 ‘‘(ii) INITIAL THRESHOLD AMOUNT.— 

16 Any increase under subparagraph (B) 

17 which is not a multiple of $5,000 shall be 

18 rounded to the nearest multiple of $5,000. 

19 ‘‘(c) SPECIFIED CHILD.—For purposes of this sec20 tion— 

21 ‘‘(1) IN GENERAL.—The term ‘specified child’ 

22 means, with respect to any taxpayer for any cal23 endar month, an individual— 

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1 ‘‘(A) who has the same principal place of 

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

3 such month, 

4 ‘‘(B) who is younger than the taxpayer and 

5 will not, as of the close of such month, have at6 tained age 18, 

7 ‘‘(C) who receives care from the taxpayer 

8 during such month that is not compensated, 

9 ‘‘(D) who is not the spouse of the taxpayer 

10 at any time during such month, and 

11 ‘‘(E) who either— 

12 ‘‘(i) is a citizen, national, or resident 

13 of the United States, or 

14 ‘‘(ii) if the taxpayer is a citizen or na15 tional of the United States, such individual 

16 is described in section 152(f)(1)(B) with 

17 respect to such taxpayer. 

18 ‘‘(2) CERTAIN INDIVIDUALS INELIGIBLE.—In 

19 the case of an individual who is a specified child 

20 with respect to another taxpayer for any calendar 

21 month, such individual shall be treated for such cal22 endar month as having no specified children. 

23 ‘‘(3) CARE FROM THE TAXPAYER.— 

24 ‘‘(A) IN GENERAL.—Except as otherwise 

25 provided by the Secretary, whether any indiVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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1 vidual receives care from the taxpayer (within 

2 the meaning of paragraph (1)(C)) shall be de3 termined on the basis of facts and cir4 cumstances with respect to the following fac5 tors: 

6 ‘‘(i) The supervision provided by the 

7 taxpayer regarding the daily activities and 

8 needs of the individual. 

9 ‘‘(ii) The maintenance by the taxpayer 

10 of a secure environment at which the indi11 vidual resides. 

12 ‘‘(iii) The provision or arrangement by 

13 the taxpayer of, and transportation by the 

14 taxpayer to, medical care at regular inter15 vals and as required for the individual. 

16 ‘‘(iv) The involvement by the taxpayer 

17 in, and financial and other support by the 

18 taxpayer for, educational or similar activi19 ties of the individual. 

20 ‘‘(v) Any other factor that the Sec21 retary determines to be appropriate to de22 termine whether the individual receives 

23 care from the taxpayer. 

24 ‘‘(B) DETERMINATION OF WHETHER CARE

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1 mining if care is compensated within the mean2 ing of paragraph (1)(C), compensation from the 

3 Federal Government, a State or local govern4 ment, a Tribal government, or any possession of 

5 the United States shall not be taken into ac6 count. 

7 ‘‘(4) APPLICATION OF TIE-BREAKER RULES.— 

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

9 subparagraph (D), if any individual would (but 

10 for this paragraph) be a specified child of 2 or 

11 more taxpayers for any month, such individual 

12 shall be treated as the specified child only of 

13 the taxpayer who is— 

14 ‘‘(i) the parent of the individual (or, if 

15 such individual would (but for this para16 graph) be a specified child of 2 or more 

17 parents of the individual for such month, 

18 the parent of the individual determined 

19 under subparagraph (B)), 

20 ‘‘(ii) if the individual is not a specified 

21 child of any parent of the individual (deter22 mined without regard to this paragraph), 

23 the specified relative of the individual with 

24 the highest adjusted gross income for the 

25 taxable year which includes such month, or 

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1 ‘‘(iii) if the individual is neither a 

2 specified child of any parent of the indi3 vidual nor a specified child of any specified 

4 relative of the individual (in both cases de5 termined without regard to this para6 graph), the taxpayer with the highest ad7 justed gross income for the taxable year 

8 which includes such month. 

9 ‘‘(B) TIE-BREAKER AMONG PARENTS.—If 

10 any individual would (but for this paragraph) 

11 be the specified child of 2 or more parents of 

12 the individual for any month, such child shall 

13 be treated only as the specified child of— 

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

15 resided for the longest period of time dur16 ing such month, or 

17 ‘‘(ii) if the child resides with both par18 ents for the same amount of time during 

19 such month, the parent with the highest 

20 adjusted gross income for the taxable year 

21 which includes such month. 

22 ‘‘(C) SPECIFIED RELATIVE.—For purposes 

23 of this paragraph, the term ‘specified relative’ 

24 means an individual who is— 

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1 ‘‘(i) an ancestor of a parent of the 

2 specified child, 

3 ‘‘(ii) a brother or sister of a parent of 

4 the specified child, or 

5 ‘‘(iii) a brother, sister, stepbrother, or 

6 stepsister of the specified child. 

7 ‘‘(D) CERTAIN PARENTS OR SPECIFIED

8 RELATIVES NOT TAKEN INTO ACCOUNT.—This 

9 paragraph shall be applied without regard to 

10 any parent or specified relative of an individual 

11 for any month if— 

12 ‘‘(i) such parent or specified relative 

13 elects to have such individual not be treat14 ed as a specified child of such parent or 

15 specified relative for such month, 

16 ‘‘(ii) in the case of a parent of such 

17 individual, the adjusted gross income of 

18 the taxpayer (with respect to whom such 

19 individual would be treated as a specified 

20 child after application of this subpara21 graph) for the taxable year which includes 

22 such month is higher than the highest ad23 justed gross income of any parent of the 

24 individual for any taxable year which in25 cludes such month (determined without reVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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1 gard to any parent with respect to whom 

2 such individual is not a specified child, de3 termined without regard to subparagraphs 

4 (A) and (B) and after application of this 

5 subparagraph), and 

6 ‘‘(iii) in the case of a specified relative 

7 of such individual, the adjusted gross in8 come of the taxpayer (with respect to 

9 whom such individual would be treated as 

10 a specified child after application of this 

11 subparagraph) for the taxable year which 

12 includes such month is higher than the 

13 highest adjusted gross income of any par14 ent and any specified relative of the indi15 vidual for any taxable year which includes 

16 such month (determined without regard to 

17 any parent and any specified relative with 

18 respect to whom such individual is not a 

19 specified child, determined without regard 

20 to subparagraphs (A) and (B) and after 

21 application of this subparagraph). 

22 ‘‘(E) TREATMENT OF JOINT RETURNS.— 

23 For purposes of this paragraph, with respect to 

24 any month, the adjusted gross income of each 

25 person who files a joint return for the taxable 

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1 year which includes such month is the total ad2 justed gross income shown on the joint return 

3 for the taxable year. 

4 ‘‘(F) PARENT.—Except as otherwise pro5 vided by the Secretary, the term ‘parent’ shall 

6 have the same meaning as when used in section 

7 152(c)(4). 

8 ‘‘(5) TREATMENT OF TEMPORARY ABSENCES.— 

9 Except as provided in regulations or other guidance 

10 issued by the Secretary, for purposes of this sub11 section— 

12 ‘‘(A) IN GENERAL.—In the case of any in13 dividual’s temporary absence from such individ14 ual’s principal place of abode, each day com15 posing the temporary absence shall— 

16 ‘‘(i) be treated as a day at such indi17 vidual’s principal place of abode, 

18 ‘‘(ii) be treated as satisfying the care 

19 requirement described in paragraph (1)(C) 

20 for each day described in clause (i), and 

21 ‘‘(iii) not be treated as a day at any 

22 other location. 

23 ‘‘(B) TEMPORARY ABSENCE.—For pur24 poses of subparagraph (A), an absence shall be 

25 treated as temporary if— 

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1 ‘‘(i) the individual would have resided 

2 at the place of abode but for the absence, 

3 and 

4 ‘‘(ii) under the facts and cir5 cumstances, it is reasonable to assume that 

6 the individual will return to reside at the 

7 place of abode. 

8 ‘‘(6) SPECIAL RULE FOR DIVORCED PARENTS, 

9 ETC.—Rules similar to the rules section 152(e) shall 

10 apply for purposes of this subsection. 

11 ‘‘(7) ELIGIBILITY DETERMINED ON BASIS OF

12 PRESUMPTIVE ELIGIBILITY.— 

13 ‘‘(A) IN GENERAL.—If a period of pre14 sumptive eligibility is established under section 

15 7527B(c) for any individual with respect to any 

16 taxpayer— 

17 ‘‘(i) such individual shall be treated as 

18 the specified child of such taxpayer for any 

19 month in such period of presumptive eligi20 bility, and 

21 ‘‘(ii) such individual shall not be 

22 treated as the specified child of any other 

23 taxpayer with respect to whom a period of 

24 presumptive eligibility has not been estab25 lished for any such month. 

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1 ‘‘(B) ABILITY OF CREDIT CLAIMANTS TO

2 ESTABLISH PRESUMPTIVE ELIGIBILITY.—Noth3 ing in section 7527B(c) shall be interpreted to 

4 preclude a taxpayer from establishing a period 

5 of presumptive eligibility (including any such 

6 period described in section 7527B(c)(2)(D)) 

7 with respect to any specified child for purposes 

8 of this section solely because such taxpayer af9 firmatively elects not to receive monthly ad10 vance child payments under section 7527B. 

11 ‘‘(d) CREDIT REFUNDABLE.—If the taxpayer (in the 

12 case of a joint return, either spouse) has a principal place 

13 of abode (determined as provided in section 32) in the 

14 United States or Puerto Rico for more than one-half of 

15 any calendar month during the taxable year, so much of 

16 the credit otherwise allowed under subsection (a) as is at17 tributable to monthly specified child allowances with re18 spect to any such calendar month shall be allowed under 

19 subpart C (and not allowed under this subpart). 

20 ‘‘(e) IDENTIFICATION REQUIREMENTS.— 

21 ‘‘(1) QUALIFYING CHILD IDENTIFICATION RE22 QUIREMENT.—No credit shall be allowed under this 

23 section to a taxpayer with respect to any qualifying 

24 child unless the taxpayer includes the name and tax25 payer identification number of such qualifying child 

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1 on the return of tax for the taxable year and such 

2 taxpayer identification number was issued on or be3 fore the due date for filing such return. 

4 ‘‘(2) TAXPAYER IDENTIFICATION REQUIRE5 MENT.—No credit shall be allowed under this section 

6 if the taxpayer identification number of the taxpayer 

7 was issued after the due date for filing the return 

8 for the taxable year. 

9 ‘‘(f) RESTRICTIONS ON TAXPAYERS WHO IMPROP10 ERLY CLAIMED CREDIT OR IMPROPERLY RECEIVED

11 MONTHLY ADVANCE CHILD PAYMENT.— 

12 ‘‘(1) TAXPAYERS MAKING PRIOR FRAUDULENT

13 OR RECKLESS CLAIMS.— 

14 ‘‘(A) IN GENERAL.—No credit shall be al15 lowed under this section for any taxable year 

16 (and no payment shall be made under section 

17 7527B for any month) in the disallowance pe18 riod. 

19 ‘‘(B) DISALLOWANCE PERIOD.—For pur20 poses of subparagraph (A), the disallowance pe21 riod is— 

22 ‘‘(i) the period of 10 taxable years 

23 after the most recent taxable year for 

24 which there was a final determination that 

25 the taxpayer’s claim of credit under this 

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1 section or section 24 (or payment received 

2 under section 7527A or 7527B) was due to 

3 fraud, 

4 ‘‘(ii) the period of 2 taxable years 

5 after the most recent taxable year for 

6 which there was a final determination that 

7 the taxpayer’s claim of credit under this 

8 section or section 24 (or payment received 

9 under section 7527A or 7527B) was due to 

10 reckless or intentional disregard of rules 

11 and regulations (but not due to fraud), 

12 and 

13 ‘‘(iii) in addition to any period deter14 mined under clause (i) or (ii) (as the case 

15 may be), the period beginning on the date 

16 of the final determination described in 

17 such clause and ending with the beginning 

18 of the period described in such clause. 

19 ‘‘(2) TAXPAYERS MAKING IMPROPER PRIOR

20 CLAIMS.—In the case of a taxpayer who is denied 

21 credit under this section or section 24 for any tax22 able year as a result of the deficiency procedures 

23 under subchapter B of chapter 63, no credit shall be 

24 allowed under this section for any subsequent tax25 able year (and no payment shall be made under secVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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1 tion 7527B for any subsequent month) unless the 

2 taxpayer provides such information as the Secretary 

3 may require to demonstrate eligibility for such cred4 it. 

5 ‘‘(3) COORDINATION WITH POSSESSIONS OF

6 THE UNITED STATES.—For purposes of this sub7 section, a taxpayer’s claim of credit under this sec8 tion or section 24 (or payment received under sec9 tion 7527A or section 7527B) includes a claim of 

10 credit under this section or section 24 of the income 

11 tax law of any jurisdiction other than the United 

12 States (or similar payment received under section 

13 7527A or section 7527B of such income tax law), 

14 and a claim made or a payment received from Amer15 ican Samoa pursuant to a plan described in sub16 section (i)(3)(B) or section 24(k)(3)(B). 

17 ‘‘(g) RECONCILIATION OF CREDIT AND MONTHLY

18 ADVANCE CHILD PAYMENTS.— 

19 ‘‘(1) IN GENERAL.—The amount otherwise de20 termined under subsection (a) with respect to any 

21 taxpayer for any taxable year shall be reduced (but 

22 not below zero) by the aggregate amount of pay23 ments made under section 7527B to such taxpayer 

24 for one or more calendar months in such taxable 

25 year. Any failure to so reduce the credit shall be 

29 

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1 treated as arising out of a mathematical or clerical 

2 error and assessed according to section 6213(b)(1). 

3 ‘‘(2) RECAPTURE OF EXCESS ADVANCE PAY4 MENTS IN CERTAIN CIRCUMSTANCES.—In the case 

5 of a taxpayer described in paragraph (3) for any 

6 taxable year, the tax imposed by this chapter for 

7 such taxable year shall be increased by the excess (if 

8 any) of— 

9 ‘‘(A) the aggregate amount of payments 

10 made to the taxpayer under section 7527B for 

11 one or more calendar months in such taxable 

12 year, over 

13 ‘‘(B) the amount determined under sub14 section (a) with respect to the taxpayer for such 

15 taxable year (without regard to paragraph (1) 

16 of this subsection). 

17 ‘‘(3) TAXPAYERS SUBJECT TO RECAPTURE.— 

18 ‘‘(A) FRAUD OR RECKLESS OR INTEN19 TIONAL DISREGARD OF RULES AND REGULA20 TIONS.—A taxpayer is described in this para21 graph with respect to any taxable year if the 

22 Secretary determines that the amount described 

23 in paragraph (2)(A) with respect to the tax24 payer for such taxable year was determined on 

30 

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1 the basis of fraud or a reckless or intentional 

2 disregard of rules and regulations. 

3 ‘‘(B) UNDERSTATEMENT OF INCOME; 

4 CHANGES IN FILING STATUS.—If the amount 

5 described in paragraph (2)(A) with respect to 

6 the taxpayer for the taxable year was deter7 mined on the basis of an amount of the tax8 payer’s modified adjusted gross income which 

9 was less than the taxpayer’s modified adjusted 

10 gross income for the applicable taxable year (as 

11 defined in subsection (b))— 

12 ‘‘(i) such taxpayer shall be treated as 

13 described in this paragraph, and 

14 ‘‘(ii) the increase determined under 

15 paragraph (2) by reason of this subpara16 graph shall not exceed the excess of— 

17 ‘‘(I) the amount described in 

18 paragraph (2)(A), over 

19 ‘‘(II) the amount which would be 

20 so described if the payments described 

21 therein had been determined on the 

22 basis of the taxpayer’s modified ad23 justed gross income for the applicable 

24 taxable year (as defined in subsection 

25 (b)). 

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1 A rule similar to the rule of the preceding 

2 sentence shall apply if the amount de3 scribed in paragraph (2)(A) with respect to 

4 the taxpayer for the taxable year was de5 termined on the basis of a filing status of 

6 the taxpayer which differs from the tax7 payer’s filing status for the applicable tax8 able year (as so defined). 

9 ‘‘(C) PAYMENTS MADE OUTSIDE OF PE10 RIOD OF PRESUMPTIVE ELIGIBILITY.—If any 

11 payment described in paragraph (2)(A) with re12 spect to the taxpayer for the taxable year was 

13 made with respect to a child for a month which 

14 was not part of a period of presumptive eligi15 bility established under section 7527B(c) for 

16 such child with respect to such taxpayer— 

17 ‘‘(i) such taxpayer shall be treated as 

18 described in this paragraph, and 

19 ‘‘(ii) the increase determined under 

20 paragraph (2) by reason of this subpara21 graph shall not exceed the portion of such 

22 payment so made. 

23 ‘‘(D) CERTAIN PAYMENTS MADE AFTER

24 NOTICE FROM SECRETARY.—If the Secretary 

25 notifies a taxpayer under section 7527B(j)(2) 

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1 that such taxpayer is subject to recapture with 

2 respect to any payments— 

3 ‘‘(i) such taxpayer shall be treated as 

4 described in this paragraph, and 

5 ‘‘(ii) the increase determined under 

6 paragraph (2) by reason of this subpara7 graph shall not exceed the aggregate 

8 amount of such payments. 

9 ‘‘(E) TAXPAYERS MOVING TO ANOTHER

10 JURISDICTION.—To minimize the amount of ad11 vance payments made under section 7527B to 

12 ineligible individuals, the Secretary shall issue 

13 regulations or other guidance for purposes of 

14 this paragraph which apply with respect to tax15 payers who are described in section 

16 7527B(b)(4) with respect to the reference 

17 month but are not so described with respect to 

18 one or more months during the taxable year for 

19 which advance payments under section 7527B 

20 are made. 

21 ‘‘(F) OTHER CIRCUMSTANCES TO PREVENT

22 ABUSE.—A taxpayer is described in this para23 graph with respect to any taxable year pursuant 

24 to regulations or other guidance of the Sec25 retary describing other recapture circumstances 

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1 to facilitate the administration and enforcement 

2 by the Secretary of section 7527B to minimize 

3 the amount of advance payments made under 

4 section 7527B to ineligible individuals and to 

5 prevent abuse. 

6 ‘‘(4) JOINT RETURNS.—Except as otherwise 

7 provided by the Secretary, in the case of an advance 

8 payment made under section 7527B with respect to 

9 a joint return, half of such payment shall be treated 

10 as having been made to each individual filing such 

11 return. 

12 ‘‘(5) COORDINATION WITH POSSESSIONS OF

13 THE UNITED STATES.—For purposes of this sub14 section, payments made under section 7527B include 

15 payments made by any jurisdiction other than the 

16 United States under section 7527B of the income 

17 tax law of such jurisdiction, and advance payments 

18 made by American Samoa pursuant to a plan de19 scribed in subsection (h)(3)(B). Any increase in tax 

20 imposed on a taxpayer by reason of paragraph (2) 

21 of the income tax law of a jurisdiction other than 

22 the United States shall be considered to reduce the 

23 aggregate amount of payments made to such tax24 payer by such jurisdiction. In carrying out this sec25 tion, the Secretary shall coordinate with each possesVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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1 sion of the United States to prevent any application 

2 of this paragraph that is inconsistent with the pur3 poses of this subsection. 

4 ‘‘(h) APPLICATION OF CREDIT IN POSSESSIONS.— 

5 ‘‘(1) MIRROR CODE POSSESSIONS.— 

6 ‘‘(A) IN GENERAL.—The Secretary shall 

7 pay to each possession of the United States 

8 with a mirror code tax system amounts equal to 

9 the loss (if any) to that possession by reason of 

10 the application of this section (determined with11 out regard to this subsection) with respect to 

12 taxable years beginning in calendar years after 

13 2023. Such amounts shall be determined by the 

14 Secretary based on information provided by the 

15 government of the respective possession. 

16 ‘‘(B) COORDINATION WITH CREDIT AL17 LOWED AGAINST UNITED STATES INCOME

18 TAXES.—No credit shall be allowed under this 

19 section for any taxable year to any individual to 

20 whom a credit is allowable against taxes im21 posed by a possession of the United States with 

22 a mirror code tax system by reason of the appli23 cation of this section in such possession for 

24 such taxable year. 

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1 ‘‘(C) MIRROR CODE TAX SYSTEM.—For 

2 purposes of this paragraph, the term ‘mirror 

3 code tax system’ means, with respect to any 

4 possession of the United States, the income tax 

5 system of such possession if the income tax li6 ability of the residents of such possession under 

7 such system is determined by reference to the 

8 income tax laws of the United States as if such 

9 possession were the United States. 

10 ‘‘(2) CROSS REFERENCES RELATED TO APPLI11 CATION OF CREDIT TO RESIDENTS OF PUERTO

12 RICO.— 

13 ‘‘(A) For application of refundable credit 

14 to residents of Puerto Rico, see subsection (d). 

15 ‘‘(B) For application of advance payment 

16 to residents of Puerto Rico, see section 

17 7527B(b)(4). 

18 ‘‘(3) AMERICAN SAMOA.— 

19 ‘‘(A) IN GENERAL.—The Secretary shall 

20 pay to American Samoa amounts estimated by 

21 the Secretary as being equal to the aggregate 

22 benefits that would have been provided to resi23 dents of American Samoa by reason of the ap24 plication of this section for taxable years begin25 ning in calendar years after 2023 if the proviVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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•HR 5953 IH

1 sions of this section had been in effect in Amer2 ican Samoa (applied as if American Samoa 

3 were the United States and without regard to 

4 the application of this section to residents of 

5 Puerto Rico under subsection (d)). 

6 ‘‘(B) DISTRIBUTION REQUIREMENT.—Sub7 paragraph (A) shall not apply unless American 

8 Samoa has a plan, which has been approved by 

9 the Secretary, under which American Samoa 

10 will promptly distribute such payments to its 

11 residents. 

12 ‘‘(C) COORDINATION WITH CREDIT AL13 LOWED AGAINST UNITED STATES INCOME

14 TAXES.— 

15 ‘‘(i) IN GENERAL.—In the case of a 

16 taxable year with respect to which a plan 

17 is approved under subparagraph (B), this 

18 section (other than this subsection) shall 

19 not apply to any individual eligible for a 

20 distribution under such plan. 

21 ‘‘(ii) APPLICATION OF SECTION IN

22 EVENT OF ABSENCE OF APPROVED

23 PLAN.—In the case of a taxable year with 

24 respect to which a plan is not approved 

25 under subparagraph (B), subsection (d) 

37 

•HR 5953 IH

1 shall be applied by substituting ‘, Puerto 

2 Rico, or American Samoa’ for ‘or Puerto 

3 Rico’. 

4 ‘‘(4) TREATMENT OF PAYMENTS.—For pur5 poses of section 1324 of title 31, United States 

6 Code, the payments under this subsection shall be 

7 treated in the same manner as a refund due from 

8 a credit provision referred to in subsection (b)(2) of 

9 such section. 

10 ‘‘(i) REGULATIONS.—The Secretary shall issue such 

11 regulations or other guidance as the Secretary determines 

12 necessary or appropriate to carry out the purposes of this 

13 section, including regulations or other guidance— 

14 ‘‘(1) for determining whether an individual re15 ceives care from a taxpayer for purposes of sub16 section (c)(1), and 

17 ‘‘(2) to coordinate or modify the application of 

18 this section and sections 24, 7527A, and 7527B in 

19 the case of any taxpayer— 

20 ‘‘(A) whose taxable year is other than a 

21 calendar year, 

22 ‘‘(B) whose filing status for a taxable year 

23 is different from the status used for deter24 mining one or more monthly payments under 

25 section 7527B during such taxable year, or 

38 

•HR 5953 IH

1 ‘‘(C) whose principal place of abode for 

2 any month is different from the principal place 

3 of abode used for determining the monthly pay4 ment under section 7527B for such month. 

5 ‘‘SEC. 24B. CREDIT FOR CERTAIN OTHER DEPENDENTS. 

6 ‘‘(a) IN GENERAL.—There shall be allowed as a cred7 it against the tax imposed by this chapter for the taxable 

8 year an amount equal to $500 with respect to each speci9 fied dependent of such taxpayer for such taxable year. 

10 ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED

11 GROSS INCOME.— 

12 ‘‘(1) IN GENERAL.—The amount of the credit 

13 allowable under subsection (a) shall be reduced (but 

14 not below zero) by $50 for each $1,000 (or fraction 

15 thereof) by which the taxpayer’s modified adjusted 

16 gross income exceeds the threshold amount. 

17 ‘‘(2) THRESHOLD AMOUNT.—For purposes of 

18 this subsection, the term ‘threshold amount’ 

19 means— 

20 ‘‘(A) $400,000, in the case of a joint re21 turn or surviving spouse (as defined in section 

22 2(a)), 

23 ‘‘(B) $300,000, in the case of a head of 

24 household (as defined in section 2(b)), and 

25 ‘‘(C) $200,000, in any other case. 

39 

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1 ‘‘(3) MODIFIED ADJUSTED GROSS INCOME.— 

2 For purposes of this subsection, the term ‘modified 

3 adjusted gross income’ means adjusted gross income 

4 increased by any amount excluded from gross in5 come under section 911, 931, or 933. 

6 ‘‘(c) SPECIFIED DEPENDENT.—For purposes of this 

7 section, the term ‘specified dependent’ means, with respect 

8 to any taxpayer for any taxable year, any dependent of 

9 such taxpayer for such taxable year unless such depend10 ent— 

11 ‘‘(1) is a specified child of the taxpayer, or any 

12 other taxpayer, for any month during such taxable 

13 year, or 

14 ‘‘(2) would not be a dependent if subparagraph 

15 (A) of section 152(b)(3) were applied without regard 

16 to all that follows ‘resident of the United States’. 

17 ‘‘(d) IDENTIFICATION REQUIREMENTS.—Rules simi18 lar to the rules of section 24A(e) shall apply for purposes 

19 of this section. 

20 ‘‘(e) TAXABLE YEAR MUST BE FULL TAXABLE

21 YEAR.—Except in the case of a taxable year closed by rea22 son of the death of the taxpayer, no credit shall be allow23 able under this section in the case of a taxable year cov24 ering a period of less than 12 months. 

40 

•HR 5953 IH

1 ‘‘(f) REGULATIONS.—The Secretary shall issue such 

2 regulations or other guidance as the Secretary determines 

3 necessary or appropriate to carry out the purposes of this 

4 section.’’. 

5 (b) MONTHLY PAYMENT OF CHILD TAX CREDIT.— 

6 Chapter 77 of such Code is amended by inserting after 

7 section 7527A the following new section: 

8 ‘‘SEC. 7527B. MONTHLY PAYMENTS OF CHILD TAX CREDIT. 

9 ‘‘(a) IN GENERAL.—The Secretary shall establish a 

10 program for making payments to taxpayers with respect 

11 to each calendar month equal to the monthly advance child 

12 payment determined with respect to such taxpayer for 

13 such month. 

14 ‘‘(b) MONTHLY ADVANCE CHILD PAYMENT.—For 

15 purposes of this section and except as otherwise provided 

16 in this section, the term ‘monthly advance child payment’ 

17 means, with respect to any taxpayer for any calendar 

18 month, the amount (if any) which is estimated by the Sec19 retary as being equal to the monthly specified child allow20 ance which would be determined under section 24A(b) 

21 with respect to such taxpayer for such calendar month if— 

22 ‘‘(1) unless determined by the Secretary based 

23 on any information known to the Secretary, the only 

24 specified children of such taxpayer for such calendar 

41 

•HR 5953 IH

1 month are the specified children of such taxpayer for 

2 the reference month, 

3 ‘‘(2) unless determined by the Secretary based 

4 on any information known to the Secretary, the ages 

5 of such children (and the status of such children as 

6 specified children) are determined for such calendar 

7 month by taking into account the passage of time 

8 since such reference month, 

9 ‘‘(3) the limitations of section 24A(b)(2) were 

10 applied with respect to the reference taxable year 

11 rather than with respect to the applicable taxable 

12 year, and 

13 ‘‘(4) unless determined by the Secretary based 

14 on any information known to the Secretary, no 

15 monthly specified child allowance were determined 

16 with respect to such taxpayer for such calendar 

17 month unless the taxpayer (in the case of a joint re18 turn, either spouse) has a principal place of abode 

19 (determined as provided in section 32) in the United 

20 States or Puerto Rico for more than one-half of the 

21 reference month. 

22 ‘‘(c) PRESUMPTIVE ELIGIBILITY.— 

23 ‘‘(1) IN GENERAL.—An individual shall be 

24 treated as a specified child of a taxpayer for pur25 poses of determining any monthly advance child payVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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•HR 5953 IH

1 ment under this section only if such month is part 

2 of the period of presumptive eligibility determined by 

3 the Secretary under this subsection with respect to 

4 such specified child and such taxpayer (determined 

5 by treating the month described in subclause (I) of 

6 paragraph (2)(A)(ii) as being the first month begin7 ning after the determination described in such sub8 clause). 

9 ‘‘(2) PERIOD OF PRESUMPTIVE ELIGIBILITY.— 

10 For purposes of this section— 

11 ‘‘(A) IN GENERAL.—Except as otherwise 

12 provided by the Secretary, the term ‘period of 

13 presumptive eligibility’ means the period— 

14 ‘‘(i) beginning with the month for 

15 which presumptive eligibility is established, 

16 and 

17 ‘‘(ii) ending with the earliest of— 

18 ‘‘(I) the beginning of the month 

19 described in clause (i) if the Secretary 

20 determines that the taxpayer com21 mitted fraud or intentionally dis22 regarded rules or regulations in estab23 lishing or maintaining presumptive 

24 eligibility, 

43 

•HR 5953 IH

1 ‘‘(II) in the case of any notifica2 tion from the Secretary that the pe3 riod of presumptive eligibility has 

4 been terminated or suspended by rea5 son of any question regarding eligi6 bility of the taxpayer for monthly ad7 vance child payments with respect to 

8 such child, the month specified in 

9 such notice as the month on which 

10 such termination or suspension be11 gins, and 

12 ‘‘(III) the month following any 

13 failure of the taxpayer to make the re14 quired annual renewal of presumptive 

15 eligibility by such date as the Sec16 retary may provide. 

17 ‘‘(B) ESTABLISHING PRESUMPTIVE ELIGI18 BILITY.—A taxpayer shall establish presumptive 

19 eligibility with respect to any specified child for 

20 any month at such time and in such manner as 

21 the Secretary may provide. Except as otherwise 

22 provided by the Secretary, in order to establish 

23 a period of presumptive eligibility the taxpayer 

24 must express a reasonable expectation and in25 tent that the taxpayer will continue to be eligiVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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•HR 5953 IH

1 ble with respect to such specified child for at 

2 least the two months following the month for 

3 which presumptive eligibility is to be estab4 lished. 

5 ‘‘(C) METHOD OF ESTABLISHING PRE6 SUMPTIVE ELIGIBILITY.—The Secretary shall 

7 ensure information to establish presumptive eli8 gibility under this paragraph may be provided 

9 on the return of tax for the taxable year ending 

10 before the calendar year which includes the 

11 month for which such eligibility is to be estab12 lished, through the on-line portal described in 

13 subsection (e), or in such other manner as the 

14 Secretary may provide. 

15 ‘‘(D) INCLUSION OF AUTOMATIC GRACE

16 PERIODS AND PERIODS OF HARDSHIP.—The pe17 riod of presumptive eligibility shall include any 

18 period to which paragraph (1) or (2) of sub19 section (g) applies. 

20 ‘‘(E) AUTOMATIC ELIGIBILITY FOR BIRTH

21 OF CHILD.—The Secretary shall issue regula22 tions or other guidance to establish procedures 

23 pursuant to which, to the maximum extent ad24 ministratively practicable— 

45 

•HR 5953 IH

1 ‘‘(i) a parent of a child born during a 

2 calendar month shall be treated as auto3 matically establishing presumptive eligi4 bility with respect to such child, 

5 ‘‘(ii) the period of such automatic pre6 sumptive eligibility is determined, and 

7 ‘‘(iii) the first monthly advance child 

8 payment with respect to such child is in9 creased to properly take into account the 

10 months in the period of such automatic 

11 presumptive eligibility which precede such 

12 payment. 

13 ‘‘(F) PRESUMPTIVE ELIGIBILITY BASED

14 ON CERTAIN GOVERNMENT PROGRAMS.—The 

15 Secretary shall issue regulations or other guid16 ance to establish procedures under which— 

17 ‘‘(i) based on information provided to 

18 the Secretary by one or more government 

19 entities, a parent or specified relative of a 

20 child is treated as automatically estab21 lishing presumptive eligibility with respect 

22 to such child, and 

23 ‘‘(ii) the period for which such auto24 matic presumptive eligibility is determined 

46 

•HR 5953 IH

1 (including any additional circumstances 

2 under which such period will terminate). 

3 ‘‘(G) COORDINATION WITH PRESUMP4 TION.—For purposes of determining the status 

5 of any individual as a specified child for pur6 poses of determining presumptive eligibility 

7 with respect to any period, section 24A(c) shall 

8 be applied without regard to paragraph (7) 

9 thereof. 

10 ‘‘(3) NOTICE OF TERMINATION OF PRESUMP11 TIVE ELIGIBILITY BY REASON OF FAILURE TO MAKE

12 ANNUAL RENEWAL.—If a taxpayer’s period of pre13 sumptive eligibility with respect to any specified 

14 child terminates by reason of paragraph 

15 (2)(A)(ii)(III), the Secretary shall provide the tax16 payer a written notice of such termination. 

17 ‘‘(d) DETERMINATION OF REFERENCE MONTH AND

18 REFERENCE TAXABLE YEAR.—For purposes of this sec19 tion— 

20 ‘‘(1) REFERENCE MONTH.—The term ‘reference 

21 month’ means, with respect to any taxpayer for any 

22 calendar month, the most recent of— 

23 ‘‘(A) in the case of a taxpayer who filed a 

24 return of tax for the last taxable year ending 

47 

•HR 5953 IH

1 before such calendar month, the last month of 

2 such taxable year, 

3 ‘‘(B) in the case of a taxpayer who filed a 

4 return of tax for the taxable year preceding the 

5 taxable year described in subparagraph (A), the 

6 last month of such preceding taxable year, and 

7 ‘‘(C) in the case of a taxpayer who pro8 vides, through a specified alternative mecha9 nism, information which is sufficient to esti10 mate the taxpayer’s monthly advance child pay11 ment for such month, such month. 

12 ‘‘(2) REFERENCE TAXABLE YEAR.—The term 

13 ‘reference taxable year’ means, with respect to any 

14 taxpayer for any calendar month, the most recent 

15 of— 

16 ‘‘(A) the taxable year described in subpara17 graph (A) or (B) of paragraph (1), or 

18 ‘‘(B) in the case of a taxpayer who pro19 vides, through a specified alternative mecha20 nism, information which is sufficient to esti21 mate the taxpayer’s modified adjusted gross in22 come for the taxable year which includes such 

23 month, such taxable year. 

24 ‘‘(3) AVAILABILITY OF INFORMATION.—Any 

25 month or year referred to in subparagraph (A), (B), 

48 

•HR 5953 IH

1 or (C) of paragraph (1) or subparagraph (A) or (B) 

2 of paragraph (2) shall not be taken into account in 

3 determining the reference month or reference tax4 able year with respect to any calendar month unless 

5 all relevant information with respect to such month 

6 or year is available to the Secretary and the Sec7 retary has adequate time to make estimates under 

8 this section on the basis of such information before 

9 the beginning of such calendar month. 

10 ‘‘(4) TREATMENT OF INSUFFICIENT INFORMA11 TION.—Except as otherwise provided by the Sec12 retary— 

13 ‘‘(A) if a taxpayer is not described in sub14 paragraph (A), (B), or (C) of paragraph (1) 

15 with respect to any calendar month, the month16 ly advance child payment with respect to such 

17 taxpayer for such calendar month shall be 

18 treated as zero unless the Secretary determines 

19 that the Secretary can make the estimate de20 scribed in subsection (b) on the basis of infor21 mation known to the Secretary which the Sec22 retary determines is reasonably reliable, and 

23 ‘‘(B) if the taxpayer is not described in 

24 paragraph (1)(C) and the information on the 

25 return of tax referred to in subparagraph (A) 

49 

•HR 5953 IH

1 or (B) of paragraph (1) does not establish the 

2 status of the taxpayer (in the case of a joint re3 turn, either spouse) as having a principal place 

4 of abode (determined as provided in section 32) 

5 in the United States or Puerto Rico for more 

6 than one-half of the reference month, the Sec7 retary shall determine such status based on in8 formation known to the Secretary. 

9 ‘‘(5) TRANSITION RULE.—In any case with re10 spect to which section 24A was not in effect for the 

11 taxable year described in subparagraph (A), (B), or 

12 (C) of paragraph (1) (whichever is applicable), sub13 section (b)(1) shall be applied by substituting ‘the 

14 qualifying children of such taxpayer for the taxable 

15 year which includes the reference month’ for ‘the 

16 specified children of such taxpayer for the reference 

17 month’. 

18 ‘‘(e) ON-LINE INFORMATION PORTAL; SPECIFIED

19 ALTERNATIVE MECHANISMS.— 

20 ‘‘(1) ON-LINE INFORMATION PORTAL.—The 

21 Secretary shall establish an on-line portal which al22 lows taxpayers to— 

23 ‘‘(A) subject to such restrictions as the 

24 Secretary may provide, elect to begin or cease 

25 receiving payments under this section, and 

50 

•HR 5953 IH

1 ‘‘(B) provide information to the Secretary 

2 which is relevant in determining the monthly 

3 advance child payment and the taxpayer’s eligi4 bility for such payment, including information 

5 regarding— 

6 ‘‘(i) the number of the taxpayer’s 

7 specified children, including by reason of 

8 the birth of a child, 

9 ‘‘(ii) the taxpayer’s marital status, 

10 ‘‘(iii) the taxpayer’s modified adjusted 

11 gross income, 

12 ‘‘(iv) the taxpayer’s principal place of 

13 abode, and 

14 ‘‘(v) any other factor which the Sec15 retary may provide. 

16 ‘‘(2) SPECIFIED ALTERNATIVE MECHANISM.— 

17 For purposes of this section, the term ‘specified al18 ternative mechanism’ means the on-line portal estab19 lished under paragraph (1), the on-line portal estab20 lished under section 7527A, and any other mecha21 nism or method established by the Secretary to allow 

22 taxpayer’s to provide the information described in 

23 paragraph (1) (including in connection with the fil24 ing of any return of tax). 

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1 ‘‘(3) AVAILABILITY IN MULTIPLE LAN2 GUAGES.—The Secretary shall ensure that the on3 line portal described in paragraph (1) is available in 

4 multiple languages. 

5 ‘‘(f) SPECIFIED CHILD OF MORE THAN 1 TAX6 PAYER.— 

7 ‘‘(1) IN GENERAL.—In the event that (without 

8 regard to this paragraph) a period of presumptive 

9 eligibility with respect to the same specified child 

10 would exist for more than 1 taxpayer at the same 

11 time— 

12 ‘‘(A) except as otherwise provided in this 

13 section or by the Secretary, a period of pre14 sumptive eligibility shall exist only respect to 

15 the taxpayer with the most recent reference 

16 month, 

17 ‘‘(B) the Secretary shall establish proce18 dures under which the Secretary expeditiously 

19 adjudicates taxpayers’ competing claims of pre20 sumptive eligibility with respect to the same 

21 child, and 

22 ‘‘(C) the Secretary shall notify any tax23 payer of the termination of a period of pre24 sumptive eligibility pursuant to this subsection. 

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1 ‘‘(2) PROVISIONS RELATED TO ADJUDICA2 TION.— 

3 ‘‘(A) EXPEDITED PROCESS; APPEALS.— 

4 The procedures established under paragraph 

5 (1)(B) shall include— 

6 ‘‘(i) an expedited process for tax7 payers who meet such requirements as the 

8 Secretary may establish for such expedited 

9 process, and 

10 ‘‘(ii) procedures for adjudicating an 

11 appeal of an adverse decision. 

12 ‘‘(B) INFORMATION RECEIPT AND COORDI13 NATION.—The Secretary may enter into agree14 ments to receive information from, and other15 wise coordinate with— 

16 ‘‘(i) Federal agencies (including the 

17 Social Security Administration and the De18 partment of Agriculture), 

19 ‘‘(ii) any State, local government, 

20 Tribal government, or possession of the 

21 United States, and 

22 ‘‘(iii) any other individual or entity 

23 that the Secretary determines to be appro24 priate for purposes of adjudicating a com25 peting claim described in paragraph (1). 

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1 ‘‘(C) ADJUDICATION NOT TREATED AS AS2 SESSMENT.—An adjudication under the proce3 dures established under paragraph (1)(B) (in4 cluding the adjudication of any appeal) shall 

5 not be treated as an assessment described in 

6 section 6201. 

7 ‘‘(D) ADJUDICATION NOT TREATED AS IN8 SPECTION OF TAXPAYER’S BOOKS OF AC9 COUNT.—The inspection of a taxpayer’s books 

10 of account in connection with any adjudication 

11 under the procedures established under para12 graph (1)(B) (including the adjudication of any 

13 appeal) shall not be treated as an examination 

14 or inspection of a taxpayer’s books of account 

15 for purposes of section 7605(b). 

16 ‘‘(3) RETROACTIVE PAYMENTS.—If, pursuant to 

17 the procedures established under paragraph (1)(B), 

18 the Secretary determines that a child is a specified 

19 child of a taxpayer and the Secretary did not make 

20 payments to such taxpayer with respect to such child 

21 for any portion of the period during which the deter22 mination was made, the Secretary may make a one23 time payment to the taxpayer with respect to which 

24 such child is the specified child in an amount equal 

25 to the aggregate amount by which the monthly adVerDate Sep 11 2014 06:33 Nov 03, 2023 Jkt 049200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\H5953.IH H5953
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1 vance child payments to such taxpayer would have 

2 increased during such period if such determination 

3 had been made immediately. 

4 ‘‘(4) RECAPTURE OF PAYMENTS.—If, pursuant 

5 to the procedures established under paragraph 

6 (1)(B), the Secretary makes payments with respect 

7 to the child during the period during which the de8 termination is made— 

9 ‘‘(A) the Secretary shall provide each tax10 payer which receives such payments notice that 

11 such payments may be subject to recapture, 

12 and 

13 ‘‘(B) upon making such determination, the 

14 Secretary shall determine on the basis of the 

15 facts and circumstances of each such taxpayer 

16 whether any such payments should be subject 

17 to recapture and shall so notify each such tax18 payer. 

19 ‘‘(g) RULES RELATED TO GRACE PERIODS AND

20 HARDSHIPS.— 

21 ‘‘(1) AUTOMATIC GRACE PERIOD.— 

22 ‘‘(A) IN GENERAL.—Notwithstanding sub23 section (f), in the case of any failure or delay 

24 in establishing a period of presumptive eligi25 bility with respect to which the taxpayer elects 

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1 the application of this subparagraph, credit 

2 under section 24A or retroactive payment under 

3 this section (similar to the payment described in 

4 subsection (f)(3)) shall be allowed or made with 

5 respect to so much of the period of such failure 

6 or delay as does not exceed 3 months. The pre7 ceding sentence shall not apply if the Secretary 

8 determines that such failure or delay was due 

9 to fraud or reckless or intentional disregard of 

10 rules and regulations. 

11 ‘‘(B) LIMITATION.—Subparagraph (A) 

12 shall not apply with respect to any taxpayer 

13 more than once during any 36-month period. 

14 ‘‘(2) HARDSHIP.—Notwithstanding subsection 

15 (f), if the Secretary determines that a failure or 

16 delay in establishing a period of presumptive eligi17 bility with respect to any specified child was due to 

18 domestic violence, serious illness, natural disaster, or 

19 any other hardship, credit under section 24A or ret20 roactive payment under this section (similar to the 

21 payment described in subsection (f)(3)) shall be al22 lowed or made with respect to so much of the period 

23 of such failure or delay as does not exceed 6 months. 

24 ‘‘(h) PROVISIONS RELATED TO FORM, MANNER, AND

25 TREATMENT OF PAYMENTS.— 

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1 ‘‘(1) APPLICATION OF ELECTRONIC FUNDS PAY2 MENT REQUIREMENT.—The payments made by the 

3 Secretary under subsection (a) shall be made by 

4 electronic funds transfer to the same extent and in 

5 the same manner as if such payments were Federal 

6 payments not made under this title. 

7 ‘‘(2) DELIVERY OF PAYMENTS.—Notwith8 standing any other provision of law, the Secretary 

9 may certify and disburse refunds payable under this 

10 section electronically to— 

11 ‘‘(A) any account to which the payee au12 thorized, on or after January 1, 2023, the deliv13 ery of a refund of taxes under this title or of 

14 a Federal payment (as defined in section 3332 

15 of title 31, United States Code), 

16 ‘‘(B) any account belonging to a payee 

17 from which that individual, on or after January 

18 1, 2023, made a payment of taxes under this 

19 title, or 

20 ‘‘(C) any Treasury-sponsored account (as 

21 defined in section 208.2 of title 31, Code of 

22 Federal Regulations). 

23 ‘‘(3) WAIVER OF CERTAIN RULES.—Notwith24 standing section 3325 of title 31, United States 

25 Code, or any other provision of law, with respect to 

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1 any payment of a refund under this section, a dis2 bursing official in the executive branch of the United 

3 States Government may modify payment information 

4 received from an officer or employee described in 

5 section 3325(a)(1)(B) of such title for the purpose 

6 of facilitating the accurate and efficient delivery of 

7 such payment. Except in cases of fraud or reckless 

8 neglect, no liability under section 3325, 3527, 3528, 

9 or 3529 of title 31, United States Code, shall be im10 posed with respect to payments made under this 

11 paragraph. 

12 ‘‘(4) EXCEPTION FROM REDUCTION OR OFF13 SET.—Any applicable payment (as defined in para14 graph (5)(E)(iii)) shall not be— 

15 ‘‘(A) subject to reduction or offset pursu16 ant to section 3716 or 3720A of title 31, 

17 United States Code, 

18 ‘‘(B) subject to reduction or offset pursu19 ant to subsection (c), (d), (e), or (f) of section 

20 6402, or 

21 ‘‘(C) reduced or offset by other assessed 

22 Federal taxes that would otherwise be subject 

23 to levy or collection. 

24 ‘‘(5) ASSIGNMENT OF BENEFITS.— 

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1 ‘‘(A) IN GENERAL.—The right of any per2 son to any applicable payment shall not be 

3 transferable or assignable, at law or in equity, 

4 and no applicable payment shall be subject to, 

5 execution, levy, attachment, garnishment, or 

6 other legal process, or the operation of any 

7 bankruptcy or insolvency law. 

8 ‘‘(B) ENCODING OF PAYMENTS.—In the 

9 case of an applicable payment described in sub10 paragraph (E)(iii)(I) that is paid electronically 

11 by direct deposit through the Automated Clear12 ing House (ACH) network, the Secretary of the 

13 Treasury (or the Secretary’s delegate) shall— 

14 ‘‘(i) issue the payment using a unique 

15 identifier that is reasonably sufficient to 

16 allow a financial institution to identify the 

17 payment as an applicable payment, and 

18 ‘‘(ii) further encode the payment pur19 suant to the same specifications as re20 quired for a benefit payment defined in 

21 section 212.3 of title 31, Code of Federal 

22 Regulations. 

23 ‘‘(C) GARNISHMENT.— 

24 ‘‘(i) ENCODED PAYMENTS.—In the 

25 case of a garnishment order that applies to 

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1 an account that has received an applicable 

2 payment that is encoded as provided in 

3 subparagraph (B), a financial institution 

4 shall follow the requirements and proce5 dures set forth in part 212 of title 31, 

6 Code of Federal Regulations, except— 

7 ‘‘(I) notwithstanding section 

8 212.4 of title 31, Code of Federal 

9 Regulations (and except as provided 

10 in subclause (II)), a financial institu11 tion shall not fail to follow the proce12 dures of sections 212.5 and 212.6 of 

13 such title with respect to a garnish14 ment order merely because such order 

15 has attached, or includes, a notice of 

16 right to garnish federal benefits issued 

17 by a State child support enforcement 

18 agency, and 

19 ‘‘(II) a financial institution shall 

20 not, with regard to any applicable 

21 payment, be required to provide the 

22 notice referenced in sections 212.6 

23 and 212.7 of title 31, Code of Federal 

24 Regulations. 

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1 ‘‘(ii) OTHER PAYMENTS.—In the case 

2 of a garnishment order (other than an 

3 order that has been served by the United 

4 States) that has been received by a finan5 cial institution and that applies to an ac6 count into which an applicable payment 

7 that has not been encoded as provided in 

8 subparagraph (B) has been deposited elec9 tronically on any date during the lookback 

10 period or into which an applicable payment 

11 that has been deposited by check on any 

12 date in the lookback period, the financial 

13 institution, upon the request of the account 

14 holder, shall treat the amount of the funds 

15 in the account at the time of the request, 

16 up to the amount of the applicable pay17 ment (in addition to any amounts other18 wise protected under part 212 of title 31, 

19 Code of Federal Regulations), as exempt 

20 from a garnishment order without requir21 ing the consent of the party serving the 

22 garnishment order or the judgment cred23 itor. 

24 ‘‘(iii) LIABILITY.—A financial institu25 tion that acts in good faith in reliance on 

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1 clauses (i) or (ii) shall not be subject to li2 ability or regulatory action under any Fed3 eral or State law, regulation, court or other 

4 order, or regulatory interpretation for ac5 tions concerning any applicable payments. 

6 ‘‘(D) NO RECLAMATION RIGHTS.—This 

7 paragraph shall not alter the status of applica8 ble payments as tax refunds or other nonbenefit 

9 payments for purpose of any reclamation rights 

10 of the Department of the Treasury or the Inter11 nal Revenue Service as per part 210 of title 31, 

12 Code of Federal Regulations. 

13 ‘‘(E) DEFINITIONS.—For purposes of this 

14 paragraph— 

15 ‘‘(i) ACCOUNT HOLDER.—The term 

16 ‘account holder’ means a natural person 

17 whose name appears in a financial institu18 tion’s records as the direct or beneficial 

19 owner of an account. 

20 ‘‘(ii) ACCOUNT REVIEW.—The term 

21 ‘account review’ means the process of ex22 amining deposits in an account to deter23 mine if an applicable payment has been de24 posited into the account during the 

25 lookback period. The financial institution 

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1 shall perform the account review following 

2 the procedures outlined in section 212.5 of 

3 title 31, Code of Federal Regulations and 

4 in accordance with the requirements of sec5 tion 212.6 of title 31, Code of Federal 

6 Regulations. 

7 ‘‘(iii) APPLICABLE PAYMENT.—The 

8 term ‘applicable payment’ means— 

9 ‘‘(I) any payment made to an in10 dividual under this section (other than 

11 any payment made pursuant to para12 graph (6)), 

13 ‘‘(II) any advance payment made 

14 by a possession of the United States 

15 with a mirror code tax system (as de16 fined in section 24(h)) pursuant to an 

17 election under paragraph (6)(B) 

18 which corresponds to a payment de19 scribed in subclause (I), and 

20 ‘‘(III) any advance payment 

21 made by American Samoa pursuant to 

22 a program for making such payments 

23 which is described in paragraph 

24 (6)(C)(ii). 

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1 ‘‘(iv) GARNISHMENT.—The term ‘gar2 nishment’ means execution, levy, attach3 ment, garnishment, or other legal process. 

4 ‘‘(v) GARNISHMENT ORDER.—The 

5 term ‘garnishment order’ means a writ, 

6 order, notice, summons, judgment, levy, or 

7 similar written instruction issued by a 

8 court, a State or State agency, a munici9 pality or municipal corporation, or a State 

10 child support enforcement agency, includ11 ing a lien arising by operation of law for 

12 overdue child support or an order to freeze 

13 the assets in an account, to effect a gar14 nishment against a debtor. 

15 ‘‘(vi) LOOKBACK PERIOD.—The term 

16 ‘lookback period’ means the two month pe17 riod that begins on the date preceding the 

18 date of account review and ends on the 

19 corresponding date of the month two 

20 months earlier, or on the last date of the 

21 month two months earlier if the cor22 responding date does not exist. 

23 ‘‘(6) APPLICATION OF ADVANCE PAYMENTS IN

24 THE POSSESSIONS OF THE UNITED STATES.— 

25 ‘‘(A) PUERTO RICO.— 

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1 ‘‘(i) For application of child tax credit 

2 to residents of Puerto Rico, see section 

3 24A(d). 

4 ‘‘(ii) For application of monthly ad5 vance child payments to residents of Puer6 to Rico, see subsection (b)(4). 

7 ‘‘(B) MIRROR CODE POSSESSIONS.—In the 

8 case of any possession of the United States with 

9 a mirror code tax system (as defined in section 

10 24A(h)(1)(C)), this section shall not be treated 

11 as part of the income tax laws of the United 

12 States for purposes of determining the income 

13 tax law of such possession unless such posses14 sion elects to have this section be so treated. 

15 ‘‘(C) ADMINISTRATIVE EXPENSES OF AD16 VANCE PAYMENTS.— 

17 ‘‘(i) MIRROR CODE POSSESSIONS.—In 

18 the case of any possession described in 

19 subparagraph (B) which makes the elec20 tion described in such subparagraph, the 

21 amount otherwise paid by the Secretary to 

22 such possession under section 

23 24A(h)(1)(A) with respect to taxable years 

24 beginning in 2024, 2025, and 2026 shall 

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1 session has a plan, which has been ap2 proved by the Secretary, for making 

3 monthly advance child payments consistent 

4 with such election. 

5 ‘‘(ii) AMERICAN SAMOA.—The amount 

6 otherwise paid by the Secretary to Amer7 ican Samoa under subparagraph (A) of 

8 section 24A(h)(3) with respect to taxable 

9 years beginning in 2024, 2025, and 2026 

10 shall each be increased by $300,000 if the 

11 plan described in subparagraph (B) of 

12 such section includes a program, which has 

13 been approved by the Secretary, for mak14 ing monthly advance child payments under 

15 rules similar to the rules of this section. 

16 ‘‘(iii) TIMING OF PAYMENT.—The 

17 Secretary may pay, upon the request of the 

18 possession of the United States to which 

19 the payment is to be made, the amount of 

20 the increase determined under clause (i) or 

21 (ii), respectively, immediately upon ap22 proval of the plan with respect to which 

23 such payment relates. 

24 ‘‘(i) APPLICATION OF CERTAIN DEFINITIONS AND

25 RULES APPLICABLE TO CHILD TAX CREDIT.— 

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1 ‘‘(1) DEFINITIONS.—Except as otherwise pro2 vided in this section, terms used in this section 

3 which are also used in section 24A shall have the 

4 same respective meanings as when used in section 

5 24A. 

6 ‘‘(2) TREATMENT OF CERTAIN DEATHS.—A 

7 child shall not be taken into account in determining 

8 the monthly advance child payment for any calendar 

9 month if the death of such child before the end of 

10 such month is known to the Secretary as of date on 

11 which the Secretary estimates such payment. 

12 ‘‘(3) IDENTIFICATION REQUIREMENTS.—Rules 

13 similar to the rules which apply under section 

14 24A(e) shall apply for purposes of this section ex15 cept that such rules shall apply with respect to the 

16 return of tax for the reference taxable year or, in the 

17 case of information provided through a specified al18 ternative mechanism, with respect to the information 

19 provided through such mechanism. 

20 ‘‘(4) RESTRICTIONS ON TAXPAYERS WHO IM21 PROPERLY CLAIMED CREDIT OR RECEIVED MONTHLY

22 ADVANCE CHILD PAYMENTS.—For restrictions on 

23 taxpayers who improperly claimed credit or received 

24 monthly advance child payments, see section 24A(f). 

25 ‘‘(j) NOTICE OF PAYMENTS.— 

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1 ‘‘(1) IN GENERAL.—Not later than January 31 

2 of the calendar year following any calendar year dur3 ing which the Secretary makes one or more pay4 ments to any taxpayer under this section, the Sec5 retary shall provide such taxpayer with a written no6 tice which includes— 

7 ‘‘(A) the taxpayer’s taxpayer identity (as 

8 defined in section 6103(b)(6)), 

9 ‘‘(B) the aggregate amount of such pay10 ments made to such taxpayer during such cal11 endar year, and 

12 ‘‘(C) such other information as the Sec13 retary determines appropriate. 

14 ‘‘(2) CERTAIN PAYMENTS SUBJECT TO RECAP15 TURE.—In the case of any payments made to a tax16 payer which the Secretary has determined are sub17 ject to recapture, the notice provided under para18 graph (1) to such taxpayer shall include the amount 

19 of such payments. 

20 ‘‘(k) NOTIFICATION OF CERTAIN EVENTS.—With re21 spect to any taxpayer receiving monthly advance child pay22 ments under this section with respect to any specified 

23 child, the Secretary shall, to the maximum extent prac24 ticable, provide reasonable advance notice of each of the 

25 following: 

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1 ‘‘(1) Any month with respect to which such 

2 monthly advance child payment will increase (rel3 ative to the preceding month) by reason of an infla4 tion adjustment under section 24A(b)(3)(A). 

5 ‘‘(2) Any month with respect to which such 

6 monthly advance child payment will be reduced (rel7 ative to the preceding month) by reason of such 

8 child ceasing to be a specified child by reason of at9 taining age 18. 

10 ‘‘(3) In the case of a taxpayer with a specified 

11 child described in section 24A(b)(1)(A), any month 

12 with respect to which such monthly advance child 

13 payment will be reduced by reason of such child at14 taining age 6. 

15 ‘‘(l) REGULATIONS.—The Secretary shall issue such 

16 regulations or other guidance as the Secretary determines 

17 necessary or appropriate to carry out the purposes of this 

18 section.’’. 

19 (c) TERMINATION OF ANNUAL CHILD TAX CRED20 IT.—Section 24 of such Code is amended by adding at 

21 the end the following new subsection: 

22 ‘‘(l) TERMINATION.—This section shall not apply to 

23 (and no payment shall be made under subsection (k) with 

24 respect to) any taxable year beginning after December 31, 

25 2023.’’. 

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1 (d) DISCLOSURE OF INFORMATION RELATING TO AD2 VANCE PAYMENT OF CHILD TAX CREDIT.—Section 

3 6103(e) of such Code is amended by adding at the end 

4 the following new paragraph: 

5 ‘‘(12) DISCLOSURE OF INFORMATION RELATING

6 TO ADVANCE PAYMENT OF CHILD TAX CREDIT.— 

7 ‘‘(A) JOINT FILERS.—In the case of an in8 dividual to whom the Secretary makes pay9 ments under section 7527A or who is eligible 

10 for monthly advance child payments under sec11 tion 7527B, if the reference taxable year (as 

12 defined in section 7527A(b)(2) or 7527B(d)(2), 

13 as the case may be) that the Secretary uses to 

14 calculate such payments is a year for which the 

15 individual filed an income tax return jointly 

16 with another individual, the Secretary may dis17 close to such individual any information which 

18 is relevant in determining the payment under 

19 section 7527A, or the monthly advance child 

20 payment under section 7527B, and the individ21 ual’s eligibility for such payment, including in22 formation regarding any of the following: 

23 ‘‘(i) The number of specified children, 

24 including by reason of the birth of a child. 

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1 ‘‘(ii) The name and TIN of specified 

2 children. 

3 ‘‘(iii) Marital status. 

4 ‘‘(iv) Modified adjusted gross income. 

5 ‘‘(v) Principal place of abode. 

6 ‘‘(vi) Any other factor which the Sec7 retary may provide pursuant to section 

8 7527A(c) or 7527B(e). 

9 ‘‘(B) COMPETING CLAIMANTS.—In the case 

10 of an individual who has a competing claim of 

11 presumptive eligibility with respect to a speci12 fied child under section 7527B(f)(1), the Sec13 retary may disclose to such individual return in14 formation provided by another individual who 

15 has a competing claim of presumptive eligibility 

16 with respect to the same specified child in the 

17 course of the Secretary’s adjudication of that 

18 competing claim, as well as any other informa19 tion considered by the Secretary with respect to 

20 that competing claim. Such information shall be 

21 limited to the items specified in subparagraph 

22 (A) and the following: 

23 ‘‘(i) Information received under any 

24 agreements or coordination the Secretary 

25 entered into with— 

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1 ‘‘(I) any State, local government, 

2 Tribal government, or possession of 

3 the United States, or 

4 ‘‘(II) any other individual or enti5 ty that the Secretary determines to be 

6 appropriate for purposes of adjudi7 cating a competing claim. 

8 ‘‘(ii) Information considered by the 

9 Secretary about where and with whom the 

10 specified child resided. 

11 ‘‘(iii) Information considered by the 

12 Secretary about expenditures made by the 

13 claimants to the extent such payments re14 late to the competing claim.’’. 

15 (e) CONFORMING AMENDMENTS.— 

16 (1) Section 26(b)(2) of such Code is amended 

17 by striking ‘‘and’’ at the end of subparagraph (Y), 

18 by striking the period at the end of subparagraph 

19 (Z) and inserting ‘‘, and’’, and by adding at the end 

20 the following new subparagraph: 

21 ‘‘(AA) section 24A(g)(2) (relating to recap22 ture of certain monthly advance child pay23 ments).’’. 

24 (2) Section 152(f)(6)(B)(ii) of such Code is 

25 amended to read as follows: 

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1 ‘‘(ii) the credits under sections 24, 

2 24A, and 24B and the payments under 

3 sections 7527A and 7527B,’’. 

4 (3) Section 3402(f)(1)(C) of such Code is 

5 amended by inserting ‘‘or section 24A (determined 

6 after application of subsection (g) thereof)’’ after 

7 ‘‘section 24 (determined after application of sub8 section (j) thereof)’’. 

9 (4) Section 6103(l)(13)(A)(v) of such Code is 

10 amended by insert ‘‘or section 24A, as the case may 

11 be’’ after ‘‘section 24’’. 

12 (5) Section 6211(b)(4)(A) of such Code is 

13 amended by inserting ‘‘24A by reason of subsection 

14 (d) thereof,’’ after ‘‘24 by reason of subsections (d) 

15 and (i)(1) thereof,’’. 

16 (6) Section 6213(g)(2)(I) of such Code is 

17 amended by inserting ‘‘or section 24A(e) (relating to 

18 monthly child tax credit)’’ after ‘‘section 24(e) (re19 lating to child tax credit)’’. 

20 (7) Section 6213(g)(2)(L) of such Code is 

21 amended by inserting ‘‘24A,’’ after ‘‘24,’’. 

22 (8) Section 6213(g)(2)(P) of such Code is 

23 amended— 

24 (A) by inserting ‘‘or 24A(f)(2)’’ after ‘‘sec25 tion 24(g)(2)’’, 

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1 (B) by inserting ‘‘or 24A’’ after ‘‘under 

2 section 24’’, and 

3 (C) by striking ‘‘subsection (g)(1) thereof’’ 

4 and inserting ‘‘section 24(g)(1) or section 

5 24A(f)(1), respectively’’. 

6 (9) Section 6695(g)(2) of such Code is amend7 ed by inserting ‘‘24A,’’ after ‘‘24,’’. 

8 (10) Paragraph (2) of section 1324(b) of title 

9 31, United States Code, as amended by the pre10 ceding provisions of this Act, is amended— 

11 (A) by inserting ‘‘24A,’’ after ‘‘24,’’, and 

12 (B) by inserting ‘‘7527B,’’ after ‘‘7527A,’’. 

13 (11) The table of sections for subpart A of part 

14 IV of subchapter A of chapter 1 of the Internal Rev15 enue Code of 1986 is amended by inserting after the 

16 item relating to section 24 the following new items: 

‘‘Sec. 24A. Monthly child tax credit. 

‘‘Sec. 24B. Credit for certain other dependents.’’. 

17 (12) The table of sections for chapter 77 of 

18 such Code is amended by inserting after the item re19 lating to section 7527A the following new item: 

‘‘Sec. 7527B. Monthly payments of child tax credit.’’. 

20 (f) EFFECTIVE DATES.— 

21 (1) IN GENERAL.—Except as otherwise pro22 vided in this subsection, the amendments made by 

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1 this section shall apply to taxable years beginning 

2 after December 31, 2023. 

3 (2) MONTHLY ADVANCE CHILD PAYMENTS.— 

4 The amendments made by subsection (b) shall apply 

5 to calendar months beginning after December 31, 

6 2023. 

7 (3) INFORMATION DISCLOSURE.—The amend8 ment made by subsection (d) shall take effect on the 

9 date of the enactment of this Act. 

10 SEC. 6. CAPITAL GAINS RATES NOT APPLICABLE TO CER11 TAIN HIGH INCOME TAXPAYERS. 

12 (a) IN GENERAL.—Section 1(h)(1) of the Internal 

13 Revenue Code of 1986 is amended by inserting ‘‘and the 

14 taxable income of such taxpayer for such taxable year does 

15 not exceed $1,000,000 (half such amount in the case of 

16 a married individual filing a separate return)’’ after ‘‘If 

17 a taxpayer has a net capital gain for any taxable year’’. 

18 (b) INFLATION ADJUSTMENT.—Section 1(h) of such 

19 Code is amended by adding at the end the following new 

20 paragraph: 

21 ‘‘(12) INFLATION ADJUSTMENT.— 

22 ‘‘(A) IN GENERAL.—In the case of any 

23 taxable year beginning after 2024, the 

24 $1,000,000 amount in paragraph (1) shall be 

25 increased by an amount equal to— 

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1 ‘‘(i) such dollar amount, multiplied by 

2 ‘‘(ii) the cost-of-living adjustment de3 termined under section 1(f)(3) for the cal4 endar year in which the taxable year be5 gins, determined by substituting ‘calendar 

6 year 2022’ for ‘calendar year 2016’ in sub7 paragraph (A)(ii) thereof. 

8 ‘‘(B) ROUNDING.—If any increase under 

9 subparagraph (A) is not a multiple of $50, such 

10 dollar amount shall be rounded to the next low11 est multiple of $50.’’. 

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

13 this section shall apply to taxable years beginning after 

14 December 31, 2023. 

15 SEC. 7. INCREASE IN RATES OF CERTAIN CORPORATE 

16 TAXES. 

17 (a) CORPORATE INCOME TAX RATE.—Section 11(b) 

18 of the Internal Revenue Code of 1986 is amended by strik19 ing ‘‘21 percent’’ and inserting ‘‘28 percent’’. 

20 (b) RATE OF TAX ON REPURCHASE OF CORPORATE

21 STOCK.—Section 4501(a) of such Code is amended by 

22 striking ‘‘1 percent’’ and inserting ‘‘4 percent’’. 

23 (c) CORPORATE ALTERNATIVE MINIMUM TAX

24 RATE.—Section 55(b)(2)(A)(i) of such Code is amended 

25 to read as follows: 

76 

•HR 5953 IH

1 ‘‘(i) the sum of— 

2 ‘‘(I) 15 percent of so much of the 

3 adjusted financial statement income 

4 (as defined in section 56A) as does 

5 not exceed $5,000,000,000, plus 

6 ‘‘(II) 25 percent of so much of 

7 such adjusted financial statement in8 come as exceeds $5,000,000,000,’’. 

9 (d) EFFECTIVE DATES.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2023. 

Æ