I 
115TH CONGRESS 
1ST SESSION 
H. R. 821 
To amend the Internal Revenue Code of 1986 to increase the child credit 
for children under the age of 6, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 2, 2017 
Ms. DELAURO (for herself, Ms. PELOSI, Mr. NEAL, Mr. DOGGETT, Mr. 
LEVIN, Mr. CROWLEY, Mr. LEWIS of Georgia, Mr. MCGOVERN, Mr. BEN 
RAY LUJA´N of New Mexico, Mr. LARSON of Connecticut, Ms. SA´NCHEZ, 
Mr. GUTIE´RREZ, Mr. PASCRELL, Mrs. DINGELL, Mr. MEEKS, Ms. NOR-
TON, Mr. SOTO, Mr. DANNY K. DAVIS of Illinois, Mr. KHANNA, Ms. 
ESTY, Mr. BUTTERFIELD, Ms. SCHAKOWSKY, Mrs. LAWRENCE, Mr. 
KENNEDY, Ms. SLAUGHTER, Ms. SHEA-PORTER, Mr. BRENDAN F. 
BOYLE of Pennsylvania, Mr. HOYER, Ms. ESHOO, and Ms. WASSERMAN 
SCHULTZ) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to increase 
the child credit for children under the age of 6, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Child Tax Credit Im-
provement Act’’. 
VerDate Sep 11 2014 
23:26 Feb 08, 2017
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H821.IH
H821
sradovich on DSK3GMQ082PROD with BILLS
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) According to the Supplemental Poverty 
Measure of the Bureau of the Census, the Child tax 
credit and earned income tax credit lift more chil-
dren out of poverty than any other Federal policy. 
According to research published by the Century 
Foundation, the child tax credit alone now lifts near-
ly 1 in 8 children who would otherwise be poor out 
of poverty. 
(2) Despite the success of the child tax credit, 
economists have found that families with young chil-
dren often receive the smallest child tax credits be-
cause they do not yet have enough income to receive 
the full benefit of the credit. 
(3) Pediatricians and other child development 
experts have long talked about the critical impor-
tance of the earliest years of life. 
(4) Economists have found similar effects of the 
importance of income in the earliest years with re-
turns to school achievement. 
(5) Young children, including babies and tod-
dlers, are among the poorest people in the country 
by age. 
(6) Economists have found that large fluctua-
tions in a family’s income can be detrimental to the 
VerDate Sep 11 2014 
23:26 Feb 08, 2017
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H821.IH
H821
sradovich on DSK3GMQ082PROD with BILLS
development of young children. Research on scarcity 
has found it is hard for parents to focus on children 
if they are worrying about having sufficient income 
to meet their family’s needs. 
(7) Indexing the value of the child tax credit 
would end the slow erosion of the child tax credit 
due to inflation. 
SEC. 3. YOUNG CHILD TAX CREDIT. 
(a) SPECIAL RULE FOR YOUNG CHILDREN.—Section 
24 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following: 
‘‘(h) YOUNG CHILD TAX CREDIT.— 
‘‘(1) IN
GENERAL.—In the case of a young 
qualifying child, subsection (a) shall be applied for 
the taxable year (after the application of subsection 
(i)) by substituting ‘$3,600’ for ‘$1,000’. 
‘‘(2) YOUNG
QUALIFYING
CHILD.—For pur-
poses of paragraph (1), the term ‘young qualifying 
child’ means a qualifying child who has not attained 
age 6 as of the close of such taxable year. 
‘‘(3) LIMITATION BASED ON ADJUSTED GROSS 
INCOME.—For purposes of applying subsection (b) 
with respect to a young qualifying child, paragraph 
(1) of subsection (b) shall be applied by substituting 
‘$180’ for ‘$50’. 
VerDate Sep 11 2014 
23:26 Feb 08, 2017
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H821.IH
H821
sradovich on DSK3GMQ082PROD with BILLS
‘‘(4) CREDIT
REFUNDABLE.—The aggregate 
credits allowed to a taxpayer under subpart C shall 
be increased by the credit which would be allowed 
under this section without regard to this subsection, 
subsection (d), and the limitation under section 
26(a). The amount of the credit allowed under this 
subsection shall not be treated as a credit allowed 
under this subpart and shall reduce the amount of 
credit otherwise allowable under subsection (a) with-
out regard to section 26(a). 
‘‘(5) RECONCILIATION
OF
CREDIT
AND
AD-
VANCE CREDIT.— 
‘‘(A) IN
GENERAL.—The amount of the 
credit allowed under subsection (a) by reason of 
paragraph (1) for any taxable year shall be re-
duced (but not below zero) by the aggregate 
amount of any advance payments of such credit 
under section 7527A for such taxable year. 
‘‘(B) EXCESS ADVANCE PAYMENTS.—If the 
aggregate amount of advance payments under 
section 7527A for the taxable year exceeds the 
amount of the credit allowed under subsection 
(a) by reason of paragraph (1) for such taxable 
year (determined without regard to subpara-
graph (A)), the tax imposed by this chapter for 
VerDate Sep 11 2014 
23:26 Feb 08, 2017
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H821.IH
H821
sradovich on DSK3GMQ082PROD with BILLS
such taxable year shall be increased by the 
amount of such excess.’’. 
(b) ADVANCE PAYMENT OF CREDIT.—Chapter 77 of 
such Code is amended by inserting after section 7527 the 
following new section: 
‘‘SEC. 7527A. ADVANCE PAYMENT OF YOUNG CHILD TAX 
CREDIT. 
‘‘(a) IN GENERAL.—As soon as practicable and not 
later than 1 year after the date of the enactment of this 
section, the Secretary shall establish a program for mak-
ing advance payments of the credit allowed under section 
24 by reason of subsection (h) thereof on a monthly basis, 
or as frequently as the Secretary determines to be admin-
istratively feasible, to taxpayers allowed such credit (deter-
mined without regard to section 24(h)(5)(A)). 
‘‘(b) LIMITATION.—The Secretary may make pay-
ments under subsection (a) only to the extent that the 
total amount of such payments made to any taxpayer dur-
ing the taxable year does not exceed the amount deter-
mined under section 24(h) with respect to such taxpayer 
(determined without regard to subsections (b) and (f) of 
such section). Such program shall make reasonable efforts 
to apply the limitation of section 24(b) with respect to 
payments made under such program.’’. 
(c) CONFORMING AMENDMENTS.— 
VerDate Sep 11 2014 
23:26 Feb 08, 2017
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H821.IH
H821
sradovich on DSK3GMQ082PROD with BILLS
(1) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘24(h),’’ after ‘‘24(d),’’. 
(2) Section 6402(m) of such Code is amended 
by inserting ‘‘or (h)’’ after ‘‘subsection (d)’’. 
(3) The table of sections for chapter 77 of such 
Code is amended by inserting after the item relating 
to section 7527 the following new item: 
‘‘Sec. 7527A. Advance payment of young child tax credit.’’. 
(4) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘24(h),’’ be-
fore ‘‘25A,’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxable years beginning 
after December 31, 2016. 
(2) ADVANCE PAYMENT PROGRAM.—The Sec-
retary of the Treasury, or his designee, shall estab-
lish the program described in section 7527A of the 
Internal Revenue Code of 1986 (as added by this 
section) not later than such date. 
SEC. 4. MODIFICATIONS OF THE CHILD TAX CREDIT. 
(a) REFUNDABLE PORTION.—Clause (i) of section 
24(d)(1)(B) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(i) 45 percent of the taxpayer’s 
earned income (within the meaning of sec-
VerDate Sep 11 2014 
23:26 Feb 08, 2017
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H821.IH
H821
sradovich on DSK3GMQ082PROD with BILLS
tion 32) which is taken into account in 
computing taxable income for the taxable 
year, or’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2016. 
SEC. 5. ADJUSTMENTS FOR INFLATION. 
(a) IN GENERAL.—Section 24 of the Internal Rev-
enue Code of 1986, as amended by sections 3 and 4, is 
amended by adding at the end the following new sub-
section: 
‘‘(i) INFLATION ADJUSTMENTS.— 
‘‘(1) CREDIT
AMOUNT
GENERALLY.—In the 
case of any taxable year beginning in a calendar 
year after 2016, the $1,000 amount contained in 
subsection (a) shall be increased by an amount equal 
to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2010’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
VerDate Sep 11 2014 
23:26 Feb 08, 2017
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H821.IH
H821
sradovich on DSK3GMQ082PROD with BILLS
‘‘(2) YOUNG CHILD CREDIT AMOUNT.—In the 
case of any taxable year beginning in a calendar 
year after 2017, the $3,600 amount contained in 
subsection (h)(1) shall be increased by an amount 
equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2016’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
‘‘(3) ROUNDING.—Any increase determined 
under paragraph (1) or (2) shall be rounded to the 
nearest multiple of $50.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2016. 
Æ 
VerDate Sep 11 2014 
23:26 Feb 08, 2017
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H821.IH
H821
sradovich on DSK3GMQ082PROD with BILLS