II 

114TH CONGRESS 

1ST SESSION S. 660 

To amend the Internal Revenue Code of 1986 to establish a credit for 

married couples who are both employed and have young children. 

IN THE SENATE OF THE UNITED STATES 

MARCH 4, 2015 

Mrs. MURRAY (for herself, Mr. REED, Mr. BROWN, Mr. DURBIN, Mr. REID, 

Mr. SCHUMER, Mrs. SHAHEEN, Ms. STABENOW, Mr. WYDEN, and Mrs. 

GILLIBRAND) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

a credit for married couples who are both employed 

and have young children. 

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 ‘‘21st Century Worker 

5 Tax Cut Act’’. 

6 SEC. 2. CREDIT FOR DUAL-EARNER FAMILIES. 

7 (a) IN GENERAL.—Subpart A of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

mstockstill on DSK4VPTVN1PROD with BILLS

2 

•S 660 IS

1 1986 is amended by inserting after section 25D the fol2 lowing new section: 

3 ‘‘SEC. 25E. DUAL-EARNER FAMILIES. 

4 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli5 gible taxpayer, there shall be allowed as a credit against 

6 the tax imposed by this chapter for the taxable year an 

7 amount equal to 10 percent of the lesser of— 

8 ‘‘(1) $10,000, or 

9 ‘‘(2) the earned income of the spouse with the 

10 lower amount of earned income for such taxable 

11 year. 

12 ‘‘(b) LIMITATION.—The amount of the credit allow13 able under subsection (a) shall be reduced (but not below 

14 zero) by an amount which bears the same ratio to the 

15 amount determined under subsection (a) (as determined 

16 without regard to this subsection) as the amount of the 

17 taxpayer’s excess adjusted gross income bears to $20,000. 

18 ‘‘(c) DEFINITIONS.—In this section: 

19 ‘‘(1) EARNED INCOME.—The term ‘earned in20 come’ has the same meaning given such term in sec21 tion 32(c)(2). 

22 ‘‘(2) ELIGIBLE TAXPAYER.— 

23 ‘‘(A) IN GENERAL.—The term ‘eligible tax24 payer’ means a taxpayer who— 

mstockstill on DSK4VPTVN1PROD with BILLS

3 

•S 660 IS

1 ‘‘(i) files a joint return for the taxable 

2 year under section 6013, and 

3 ‘‘(ii) has at least 1 qualifying child (as 

4 defined in section 152(c)) who has not at5 tained 12 years of age before the close of 

6 the taxable year. 

7 ‘‘(3) EXCESS ADJUSTED GROSS INCOME.—The 

8 term ‘excess adjusted gross income’ means the 

9 amount of the eligible taxpayer’s adjusted gross in10 come (as defined in section 62, determined without 

11 regard to this section) that exceeds $110,000 for the 

12 taxable year. 

13 ‘‘(d) INFLATION ADJUSTMENT.— 

14 ‘‘(1) IN GENERAL.—In the case of any taxable 

15 year beginning after 2016, each of the dollar 

16 amounts in subsections (a)(1) and (c)(3) shall be in17 creased by an amount equal to— 

18 ‘‘(A) such dollar amount, multiplied by 

19 ‘‘(B) the cost-of-living adjustment deter20 mined under section 1(f)(3) for the calendar 

21 year in which the taxable year begins, deter22 mined by substituting ‘calendar year 2015’ for 

23 ‘calendar year 1992’ in subparagraph (B) 

24 thereof. 

mstockstill on DSK4VPTVN1PROD with BILLS

4 

•S 660 IS

1 ‘‘(2) ROUNDING.—If any dollar amount in sub2 section (a)(1) or (c)(3), after being increased under 

3 paragraph (1), is not a multiple of $1,000, such dol4 lar amount shall be rounded to the nearest multiple 

5 of $1,000. 

6 ‘‘(e) ADDITIONAL ELIGIBILITY REQUIREMENTS.— 

7 ‘‘(1) INDIVIDUAL CLAIMING BENEFITS UNDER

8 SECTION 911.—No credit shall be allowed under this 

9 section if an individual (or the individual’s spouse) 

10 claims the benefits of section 911 for the taxable 

11 year. 

12 ‘‘(2) NON-RESIDENT ALIENS.—No credit shall 

13 be allowed under this section if an individual (or the 

14 individual’s spouse) is a nonresident alien individual 

15 for any portion of the taxable year unless such indi16 vidual is treated for such taxable year as a resident 

17 of the United States for purposes of this chapter by 

18 reason of an election under subsection (g) or (h) of 

19 section 6013. 

20 ‘‘(3) IDENTIFICATION NUMBER REQUIRE21 MENT.—No credit shall be allowed under this section 

22 if the eligible taxpayer does not include on the joint 

23 return of tax for the taxable year— 

24 ‘‘(A) the taxpayer identification number of 

25 the individual and the individual’s spouse, and 

mstockstill on DSK4VPTVN1PROD with BILLS

5 

•S 660 IS

1 ‘‘(B) the name, age, and taxpayer identi2 fication number of any qualifying children. 

3 ‘‘(f) TAXABLE YEAR MUST BE FULL TAXABLE

4 YEAR.—Except in the case of a taxable year closed by rea5 son of the death of an individual, no credit shall be allow6 able under this section in the case of a taxable year cov7 ering a period of less than 12 months.’’. 

8 (b) ENHANCEMENT OF EARNED INCOME TAX CRED9 IT.—Section 32 of such Code is amended— 

10 (1) in subsection (a)(2)(B), by striking ‘‘earned 

11 income’’ and inserting ‘‘modified earned income (as 

12 defined in subsection (c)(5))’’, and 

13 (2) in subsection (c), by adding at the end the 

14 following new paragraph: 

15 ‘‘(5) MODIFIED EARNED INCOME.—The term 

16 ‘modified earned income’ means an amount equal to 

17 the earned income of the taxpayer minus an amount 

18 equal to the product of— 

19 ‘‘(A) the amount of any credit allowed to 

20 the taxpayer under section 25E for the taxable 

21 year, multiplied by 

22 ‘‘(B) 10.’’. 

23 (c) CONFORMING AMENDMENT.—The table of sec24 tions for subpart A of part IV of subchapter A of chapter 

25 1 of the Internal Revenue Code of 1986 is amended by 

mstockstill on DSK4VPTVN1PROD with BILLS

6 

•S 660 IS

1 inserting after the item relating to section 25D the fol2 lowing: 

‘‘Sec. 25E. Dual-earner families.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

Æ 

mstockstill on DSK4VPTVN1PROD with BILLS