I 
115TH CONGRESS 
1ST SESSION H. R. 3757 
To amend the Internal Revenue Code of 1986 to modify the earned income 
tax credit to account for the amount by which economic growth has 
outpaced income growth, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 13, 2017 
Mr. KHANNA (for himself, Mr. EVANS, Mr. BUTTERFIELD, Mr. CONYERS, Mr. 
GRIJALVA, Ms. NORTON, Ms. WILSON of Florida, Ms. LEE, Mr. RASKIN, 
Mr. RUSH, Mr. RYAN of Ohio, Ms. KELLY of Illinois, Ms. CLARKE of 
New York, Mr. NADLER, Mr. CARTWRIGHT, Ms. SCHAKOWSKY, Mr. GON-
ZALEZ of Texas, Mr. BEYER, Mr. BRADY of Pennsylvania, Mr. COHEN, 
Ms. JACKSON LEE, Mr. PALLONE, Mrs. WATSON COLEMAN, Mr. CUM-
MINGS, Mr. DEFAZIO, Mr. WELCH, Ms. BROWNLEY of California, Ms. 
MOORE, Ms. JAYAPAL, Ms. MAXINE
WATERS
of California, Ms. 
HANABUSA, Mr. NORCROSS, Mrs. NAPOLITANO, Mr. DELANEY, Mrs. 
BEATTY, Mr. SCOTT of Virginia, Mr. SERRANO, Ms. VELA´ZQUEZ, Mr. 
ELLISON, Mr. GUTIE´RREZ, Ms. FUDGE, Mr. SOTO, Mr. CICILLINE, Mr. 
GARAMENDI, Mr. JEFFRIES, Mr. POCAN, Mr. SIRES, Ms. SPEIER, Ms. 
ROYBAL-ALLARD, Mr. HASTINGS, and Mr. BRENDAN F. BOYLE of Penn-
sylvania) 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 modify 
the earned income tax credit to account for the amount 
by which economic growth has outpaced income growth, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Grow American In-
comes Now Act of 2017’’ or the ‘‘GAIN Act’’. 
SEC. 2. MODIFICATION OF EARNED INCOME TAX CREDIT. 
(a) IN GENERAL.— 
(1) INCREASE IN CREDIT PERCENTAGE.—The 
table in section 32(b)(1) of the Internal Revenue 
Code of 1986 is amended— 
(A) by striking ‘‘7.65’’ in the second col-
umn (relating to credit percentage) and insert-
ing ‘‘30’’; 
(B) by striking ‘‘7.65’’ in the third column 
(relating to phaseout percentage) and inserting 
‘‘15.98’’; 
(C) 
by 
striking 
‘‘34’’ 
and 
inserting 
‘‘65.28’’; 
(D) by striking ‘‘40’’ and inserting 
‘‘76.80’’; and 
(E) by striking ‘‘45’’ and inserting 
‘‘86.40’’. 
(2) EARNED INCOME AMOUNT AND PHASEOUT 
AMOUNT.— 
(A) IN
GENERAL.—Subparagraph (A) of 
section 32(b)(2) of such Code is amended by 
striking ‘‘Subject to subparagraph (B), the 
earned income amount and the phaseout 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
amount’’ and inserting ‘‘Subject to subpara-
graph (B)— 
‘‘(i) PHASEOUT AMOUNT.—The phase-
out amount is $18,340. 
‘‘(ii) EARNED INCOME AMOUNT.—The 
earned income amount’’. 
(B) CREDIT
PHASE-IN
ENDS.—Section 
32(b)(2)(A)(ii) of such Code, as amended by 
subparagraph (A), is further amended by strik-
ing the table and inserting the following: 
‘‘In the case of an 
The earned income 
eligible individual with: 
amount is: 
1 qualifying child ......................................................................... $10,000
2 or more qualifying children ...................................................... $14,040
No qualifying children ................................................................. $10,000.’’. 
(b) ELIGIBILITY AGE.—Subclause (II) of section 
32(c)(1)(A)(ii) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘25’’ and inserting ‘‘21’’. 
(c) CONFORMING AND TECHNICAL AMENDMENT.— 
Paragraph (1) of section 32(j) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning after 2016, each of the dollar 
amounts in subsections (b)(2) and (i)(1) shall be in-
creased 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 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
year in which the taxable year begins, deter-
mined— 
‘‘(i) in the case of amounts in sub-
section (b)(2)(A), by substituting ‘calendar 
year 2016’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof, and 
‘‘(ii) in the case of amounts in sub-
section (i)(1), by substituting ‘calendar 
year 1995’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
SEC. 3. ADVANCE PAYMENT OF EARNED INCOME CREDIT. 
(a) IN GENERAL.—Chapter 25 of subtitle C of the 
Internal Revenue Code of 1986 is amended by inserting 
after section 3506 the following new section: 
‘‘SEC. 3507. ADVANCE PAYMENT OF EARNED INCOME CRED-
IT. 
‘‘(a) ADVANCE PAYMENT.— 
‘‘(1) IN GENERAL.—An employer making pay-
ment of wages to an employee with respect to whom 
an eligibility certificate is in effect shall, at the time 
of paying such wages for the payroll period elected 
by the employee under paragraph (2), make an addi-
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
tional lump sum payment to such employee equal to 
the earned income advance amount (except as pro-
vided in subsection (b)(1)(C)(ii)) of such employee. 
‘‘(2) PAYMENTS AVAILABLE AFTER 6 MONTHS 
OF
EMPLOYMENT
DURING
CALENDAR
YEAR.—For 
purposes of paragraph (1), an employee with respect 
to whom an eligibility certificate is in effect for the 
calendar year may elect to receive the earned income 
advance amount at the same time as wages for any 
payroll period which begins after the employee has 
been paid wages by the employer for a period of not 
less than 6 months during such calendar year. 
‘‘(b) ELIGIBILITY CERTIFICATE.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, an eligibility certificate is a statement sub-
mitted by an employee to the employer which— 
‘‘(A) certifies that the employee is eligible 
to receive the credit provided by section 32 for 
the taxable year, 
‘‘(B) certifies that the employee does not 
have an eligibility certificate in effect for the 
calendar year with respect to the payment of 
wages by another employer, and 
‘‘(C) certifies that— 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
‘‘(i) an eligibility certificate has not 
been in effect for the spouse of the em-
ployee on any date during the calendar 
year, or 
‘‘(ii) such a certificate is in effect for 
the spouse of the employee, and the em-
ployee is eligible to receive only 1⁄2 the 
earned income advance amount otherwise 
determined with respect to the employee. 
‘‘(2) 
EMPLOYER
NOT
RESPONSIBLE
FOR 
VERIFICATION.—For purposes of this section, an 
employer shall not— 
‘‘(A) be required to verify any certification 
made by an employee in the statement de-
scribed in paragraph (1), or 
‘‘(B) be held liable for any false claims or 
statements made by an employee in regards to 
such statement. 
‘‘(c) EARNED INCOME ADVANCE AMOUNT.— 
‘‘(1) DETERMINATION OF AMOUNT.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the term ‘earned income advance 
amount’ means, with respect to any payroll pe-
riod, the amount determined— 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
‘‘(i) on the basis of the wages of the 
employee from the employer during such 
calendar year through such payroll period, 
and 
‘‘(ii) in accordance with tables issued 
by the Secretary. 
‘‘(B) LIMITATION.—For each calendar 
year, except as provided in subparagraph (C), 
the earned income advance amount shall not ex-
ceed $500. 
‘‘(C) ADJUSTMENT FOR INFLATION.— 
‘‘(i) IN GENERAL.—In the case of any 
taxable year beginning after 2019, the 
$500 amount in subparagraph (B) shall be 
increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins determined by sub-
stituting ‘calendar year 2018’ for ‘cal-
endar year 1992’ in subparagraph (B) 
thereof. 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
‘‘(ii) ROUNDING.—If any increase de-
termined under paragraph (1) is not a 
multiple of $10, such increase shall be 
rounded to the nearest multiple of $10. 
‘‘(2) ARMED FORCES.—In the case of an em-
ployee who is a member of the Armed Forces of the 
United States, the earned income advance amount 
shall be determined by taking into account the total 
wages of such employee, as determined for purposes 
of section 32. 
‘‘(3) ADVANCE
AMOUNT
TABLES.—For pur-
poses of paragraph (1)(A)(ii), the tables issued by 
the Secretary shall be similar in form to the tables 
issued under section 3402 and, to the extent fea-
sible, coordinated with such tables. 
‘‘(d) PAYMENTS TO BE TREATED AS PAYMENTS OF 
WITHHOLDING AND FICA TAXES.— 
‘‘(1) IN GENERAL.—Payments made by an em-
ployer under subsection (a) to an employee— 
‘‘(A) shall not be treated as payment of 
compensation, and 
‘‘(B) shall be treated as made out of— 
‘‘(i) amounts required to be deducted 
and withheld for the payroll period under 
section 3401, 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
‘‘(ii) amounts required to be deducted 
for the payroll period under section 3102, 
and 
‘‘(iii) amounts of the taxes imposed 
for the payroll period under section 3111, 
as if the employer had paid to the Secretary, on 
the day on which the wages are paid to the em-
ployee, an amount equal to such payments. 
‘‘(2) ADVANCE
PAYMENTS
EXCEED
TAXES 
DUE.—In the case of any employer, if for any pay-
roll period the aggregate amount of earned income 
advance payments exceeds the sum of the amounts 
referred to in paragraph (1)(B), the employer shall 
pay only so much of such earned income advance 
payment as does not exceed such sum, and shall not 
make any further advance payments to the employee 
for the calendar year. 
‘‘(3) 
FAILURE
TO
MAKE
ADVANCE
PAY-
MENTS.—Failure to make any payment of an earned 
income advance amount as required under this sec-
tion shall be treated as the failure at such time to 
deduct and withhold under chapter 24 an amount 
equal to the earned income advance amount. 
‘‘(e) SUBMISSION OF CERTIFICATE.— 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
‘‘(1) EFFECTIVE PERIOD.—An eligibility certifi-
cate submitted to an employer at any time during 
the calendar year shall continue in effect with re-
spect to the employee during such calendar year 
until revoked by the employee or until another such 
certificate takes effect under this section. 
‘‘(2) REQUIREMENT
TO
REVOKE
CERTIFI-
CATE.—In the case of an employee who has sub-
mitted an eligibility certificate under this section and 
subsequently becomes ineligible for the credit pro-
vided under section 32 for the taxable year, the em-
ployee shall, not later than 10 days after becoming 
ineligible for such credit, submit to the employer a 
revocation of such certificate. 
‘‘(3) FORM AND CONTENTS OF CERTIFICATE.— 
Eligibility certificates shall be in such form and con-
tain such other information as the Secretary may by 
regulations prescribe. 
‘‘(f) TAXPAYERS MAKING PRIOR FRAUDULENT OR 
RECKLESS CLAIMS.— 
‘‘(1) IN GENERAL.—No earned income advance 
amount shall be paid under this section for any tax-
able year in the disallowance period. 
‘‘(2) DISALLOWANCE PERIOD.—For purposes of 
paragraph (1), the disallowance period is— 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
‘‘(A) the period of 10 taxable years after 
the most recent taxable year for which there 
was a final determination that the taxpayer’s 
claim of an earned income advance amount 
under this section was due to fraud, and 
‘‘(B) the period of 2 taxable years after 
the most recent taxable year for which there 
was a final determination that the taxpayer’s 
claim of an earned income advance amount 
under this section was due to reckless or inten-
tional disregard of rules and regulations (but 
not due to fraud). 
‘‘(g) TAXABLE
YEAR.—The term ‘taxable year’ 
means the last taxable year of the employee under subtitle 
A beginning in the calendar year in which the wages are 
paid. 
‘‘(h) IRS NOTIFICATION.—The Internal Revenue 
Service shall take such steps as may be appropriate to en-
sure that taxpayers who receive a refund of the credit 
under section 32 are aware of the availability of earned 
income advance amounts under this section.’’. 
(b) COORDINATION WITH ADVANCE PAYMENTS.— 
Section 32 of the Internal Revenue Code of 1986 is 
amended by inserting after subsection (f) the following 
new subsection: 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
‘‘(g) COORDINATION WITH ADVANCE PAYMENTS OF 
EARNED INCOME CREDIT.— 
‘‘(1) RECAPTURE OF ADVANCE PAYMENTS.—If 
any payment is made to the individual by an em-
ployer under section 3507 during any calendar year, 
then the tax imposed by this chapter for the individ-
ual’s last taxable year beginning in such calendar 
year shall be increased by the aggregate amount of 
such payments. 
‘‘(2) 
RECONCILIATION
OF
PAYMENTS
AD-
VANCED AND CREDIT ALLOWED.—Any increase in 
tax under paragraph (1) shall not be treated as tax 
imposed by this chapter for purposes of determining 
the amount of any credit (other than the credit al-
lowed by subsection (a)) allowable under this part.’’. 
(c) FILING REQUIREMENT.—Section 6012(a) of the 
Internal Revenue Code of 1986 is amended by inserting 
after paragraph (8) the following new paragraph: 
‘‘(9) Every individual who receives payments 
during the calendar year in which the taxable year 
begins under section 3507.’’. 
(d) RECEIPTS FOR EMPLOYEES.—Section 6051(a) of 
the Internal Revenue Code of 1986 is amended by insert-
ing after paragraph (6) the following new paragraph: 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS
‘‘(7) the total amount paid to the employee 
under section 3507 (relating to advance payment of 
earned income credit),’’. 
(e) CLERICAL AMENDMENT.—The table of sections 
for chapter 25 of subtitle C of the Internal Revenue Code 
of 1986 is amended by inserting after the item relating 
to section 3506 the following new item: 
‘‘Sec. 3507. Advance payment of earned income credit.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date which is 1 year after the date of the enactment 
of this Act. 
Æ 
VerDate Sep 11 2014 
04:05 Sep 21, 2017
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6301
E:\BILLS\H3757.IH
H3757
lotter on DSKBCFDHB2PROD with BILLS