463 
HR 1319 PCS
‘‘SEC. 7527A. ADVANCE PAYMENT OF CHILD TAX CREDIT. 
‘‘(a) IN GENERAL.—The Secretary shall establish a 
program for making periodic payments to taxpayers 
which, in the aggregate during any calendar year, equal 
the annual advance amount determined with respect to 
such taxpayer for such calendar year. Except as provided 
in subsection (b)(3)(B), the periodic payments made to 
any taxpayer for any calendar year shall be in equal 
amounts. 
‘‘(b) ANNUAL ADVANCE AMOUNT.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘annual advance 
amount’ means, with respect to any taxpayer for any 
calendar year, the amount (if any) which is esti-
mated by the Secretary as being equal to 50 percent 
of the amount which would be treated as allowed 
under subpart C of part IV of subchapter A of chap-
ter 1 by reason of section 24(i)(1) for the taxpayer’s 
taxable year beginning in such calendar year if— 
‘‘(A) the status of the taxpayer as a tax-
payer described in section 24(i)(1) is deter-
mined with respect to the reference taxable 
year, 
‘‘(B) the taxpayer’s modified adjusted 
gross income for such taxable year is equal to 
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00463
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS
464 
HR 1319 PCS
the taxpayer’s modified adjusted gross income 
for the reference taxable year, 
‘‘(C) the only children of such taxpayer for 
such taxable year are qualifying children prop-
erly claimed on the taxpayer’s return of tax for 
the reference taxable year, and 
‘‘(D) the ages of such children (and the 
status of such children as qualifying children) 
are determined for such taxable year by taking 
into account the passage of time since the ref-
erence taxable year. 
‘‘(2) REFERENCE TAXABLE YEAR.—Except as 
provided in paragraph (3)(A), the term ‘reference 
taxable year’ means, with respect to any taxpayer 
for any calendar year, the taxpayer’s taxable year 
beginning in the preceding calendar year or, in the 
case of taxpayer who did not file a return of tax for 
such taxable year, the taxpayer’s taxable year begin-
ning in the second preceding calendar year. 
‘‘(3) 
MODIFICATIONS
DURING
CALENDAR 
YEAR.— 
‘‘(A) IN
GENERAL.—The Secretary may 
modify, during any calendar year, the annual 
advance amount with respect to any taxpayer 
for such calendar year to take into account— 
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00464
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS
465 
HR 1319 PCS
‘‘(i) a return of tax filed by such tax-
payer during such calendar year (and the 
taxable year to which such return relates 
may be taken into account as the reference 
taxable year), and 
‘‘(ii) any other information provided 
by the taxpayer to the Secretary which al-
lows the Secretary to determine payments 
under subsection (a) which, in the aggre-
gate during any taxable year of the tax-
payer, more closely total the Secretary’s 
estimate of the amount treated as allowed 
under subpart C of part IV of subchapter 
A of chapter 1 by reason of section 
24(i)(1) for such taxable year of such tax-
payer. 
‘‘(B) ADJUSTMENT TO REFLECT EXCESS 
OR DEFICIT IN PRIOR PAYMENTS.—In the case 
of any modification of the annual advance 
amount under subparagraph (A), the Secretary 
may adjust the amount of any periodic payment 
made after the date of such modification to 
properly take into account the amount by which 
any periodic payment made before such date 
was greater than or less than the amount that 
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00465
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS
466 
HR 1319 PCS
such payment would have been on the basis of 
the annual advance amount as so modified. 
‘‘(4) DETERMINATION OF STATUS.—If informa-
tion contained in the taxpayer’s return of tax for the 
reference taxable year does not establish the status 
of the taxpayer as being described in section 
24(i)(1), the Secretary shall, for purposes of para-
graph (1)(A), determine such status based on infor-
mation known to the Secretary. 
‘‘(5) TREATMENT
OF
CERTAIN
DEATHS.—A 
child shall not be taken into account in determining 
the annual advance amount under paragraph (1) if 
the death of such child is known to the Secretary as 
of the beginning of the calendar year for which the 
estimate under such paragraph is made. 
‘‘(c) ON-LINE INFORMATION PORTAL.—The Sec-
retary shall establish an on-line portal which allows tax-
payers to— 
‘‘(1) elect not to receive payments under this 
section, and 
‘‘(2) provide information to the Secretary which 
would be relevant to a modification under subsection 
(b)(3)(B) of the annual advance amount, including 
information regarding— 
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00466
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS
467 
HR 1319 PCS
‘‘(A) a change in the number of the tax-
payer’s qualifying children, including by reason 
of the birth of a child, 
‘‘(B) a change in the taxpayer’s marital 
status, 
‘‘(C) a significant change in the taxpayer’s 
income, and 
‘‘(D) any other factor which the Secretary 
may provide. 
‘‘(d) NOTICE OF PAYMENTS.—Not later than Janu-
ary 31 of the calendar year following any calendar year 
during which the Secretary makes one or more payments 
to any taxpayer under this section, the Secretary shall pro-
vide such taxpayer with a written notice which includes 
the taxpayer’s taxpayer identity (as defined in section 
6103(b)(6)), the aggregate amount of such payments 
made to such taxpayer during such calendar year, and 
such other information as the Secretary determines appro-
priate. 
‘‘(e) ADMINISTRATIVE PROVISIONS.— 
‘‘(1) APPLICATION OF ELECTRONIC FUNDS PAY-
MENT REQUIREMENT.—The payments made by the 
Secretary under subsection (a) shall be made by 
electronic funds transfer to the same extent and in 
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00467
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS
468 
HR 1319 PCS
the same manner as if such payments were Federal 
payments not made under this title. 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subparagraphs (B) and (C) of 
section 6428A(f)(3) shall apply for purposes of this 
section. 
‘‘(3) EXCEPTION
FROM
REDUCTION
OR
OFF-
SET.—Any payment made to any individual under 
this section shall not be— 
‘‘(A) subject to reduction or offset pursu-
ant to subsection (c), (d), (e), or (f) of section 
6402, or 
‘‘(B) reduced or offset by other assessed 
Federal taxes that would otherwise be subject 
to levy or collection. 
‘‘(4) APPLICATION OF ADVANCE PAYMENTS IN 
THE POSSESSIONS OF THE UNITED STATES.— 
‘‘(A) IN GENERAL.—The advance payment 
amount determined under this section shall be 
determined— 
‘‘(i) by applying section 24(i)(1) with-
out regard to the phrase ‘or is a bona fide 
resident of Puerto Rico (within the mean-
ing of section 937(a))’, and 
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00468
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS
469 
HR 1319 PCS
‘‘(ii) 
without 
regard 
to 
section 
24(k)(3)(C)(ii)(I). 
‘‘(B) MIRROR CODE POSSESSIONS.—In the 
case of any possession of the United States with 
a mirror code tax system (as defined in section 
24(k)), this section shall not be treated as part 
of the income tax laws of the United States for 
purposes of determining the income tax law of 
such possession unless such possession elects to 
have this section be so treated. 
‘‘(C) ADMINISTRATIVE EXPENSES OF AD-
VANCE PAYMENTS.— 
‘‘(i) MIRROR CODE POSSESSIONS.—In 
the case of any possession described in 
subparagraph (B) which makes the elec-
tion described in such subparagraph, the 
amount otherwise paid by the Secretary to 
such possession under section 24(k)(1)(A) 
with respect to taxable years beginning in 
2021 shall be increased by $300,000 if 
such possession has a plan, which has been 
approved by the Secretary, for making ad-
vance payments consistent with such elec-
tion. 
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00469
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS
470 
HR 1319 PCS
‘‘(ii) AMERICAN SAMOA.—The amount 
otherwise paid by the Secretary to Amer-
ican Samoa under subparagraph (A) of 
section 24(k)(3) with respect to taxable 
years beginning in 2021 shall be increased 
by $300,000 if the plan described in sub-
paragraph (B) of such section includes a 
program, which has been approved by the 
Secretary, for making advance payments 
under rules similar to the rules of this sec-
tion. 
‘‘(iii) TIMING
OF
PAYMENT.—The 
Secretary may pay, upon the request of the 
possession of the United States to which 
the payment is to be made, the amount of 
the increase determined under clause (i) or 
(ii) immediately upon approval of the plan 
referred to in such clause, respectively. 
‘‘(f) APPLICATION.—No payments shall be made 
under the program established under subsection (a) with 
respect to— 
‘‘(1) any period before July 1, 2021, or 
‘‘(2) any period after December 31, 2021. 
‘‘(g) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as the Secretary determines 
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00470
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS
471 
HR 1319 PCS
necessary or appropriate to carry out the purposes of this 
section and subsections (i)(1) and (j) of section 24, includ-
ing regulations or other guidance which provides for the 
application of such provisions where the filing status of 
the taxpayer for a taxable year is different from the status 
used for determining the annual advance amount.’’. 
(2) RECONCILIATION OF CREDIT AND ADVANCE 
CREDIT.—Section 24 of such Code, as amended by 
the preceding provision of this Act, is amended by 
adding at the end the following new subsection: 
‘‘(j) RECONCILIATION
OF CREDIT
AND ADVANCE 
CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowed under this section to any taxpayer for any 
taxable year shall be reduced (but not below zero) by 
the aggregate amount of payments made under sec-
tion 7527A to such taxpayer during such taxable 
year. Any failure to so reduce the credit shall be 
treated as arising out of a mathematical or clerical 
error and assessed according to section 6213(b)(1). 
‘‘(2) EXCESS ADVANCE PAYMENTS.— 
‘‘(A) IN
GENERAL.—If the aggregate 
amount of payments under section 7527A to 
the taxpayer during the taxable year exceeds 
the amount of the credit allowed under this sec-
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00471
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS
472 
HR 1319 PCS
tion to such taxpayer for such taxable year (de-
termined without regard to paragraph (1)), the 
tax imposed by this chapter for such taxable 
year shall be increased by the amount of such 
excess. Any failure to so increase the tax shall 
be treated as arising out of a mathematical or 
clerical error and assessed according to section 
6213(b)(1). 
‘‘(B) SAFE HARBOR BASED ON MODIFIED 
ADJUSTED GROSS INCOME.— 
‘‘(i) IN GENERAL.—In the case of a 
taxpayer whose modified adjusted gross in-
come (as defined in subsection (b)) for the 
taxable year does not exceed 200 percent 
of the applicable income threshold, the 
amount of the increase determined under 
subparagraph (A) with respect to such tax-
payer for such taxable year shall be re-
duced (but not below zero) by the safe har-
bor amount. 
‘‘(ii) PHASE
OUT
OF
SAFE
HARBOR 
AMOUNT.—In the case of a taxpayer whose 
modified adjusted gross income (as defined 
in subsection (b)) for the taxable year ex-
ceeds the applicable income threshold, the 
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00472
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS
473 
HR 1319 PCS
safe harbor amount otherwise in effect 
under clause (i) shall be reduced by the 
amount which bears the same ratio to such 
amount as such excess bears to the appli-
cable income threshold. 
‘‘(iii) APPLICABLE
INCOME
THRESH-
OLD.—For purposes of this subparagraph, 
the term ‘applicable income threshold’ 
means— 
‘‘(I) $60,000 in the case of a 
joint return or surviving spouse (as 
defined in section 2(a)), 
‘‘(II) $50,000 in the case of a 
head of household, and 
‘‘(III) $40,000 in any other case. 
‘‘(iv) SAFE
HARBOR
AMOUNT.—For 
purposes of this subparagraph, the term 
‘safe harbor amount’ means, with respect 
to any taxable year, the product of— 
‘‘(I) $2,000, multiplied by 
‘‘(II) the excess (if any) of the 
number of qualified children taken 
into account in determining the an-
nual advance amount with respect to 
the taxpayer under section 7527A 
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00473
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS
474 
HR 1319 PCS
with respect to months beginning in 
such taxable year, over the number of 
qualified children taken into account 
in determining the credit allowed 
under this section for such taxable 
year.’’. 
(3) 
COORDINATION
WITH
WAGE
WITH-
HOLDING.—Section 3402(f)(1)(C) of such Code is 
amended by striking ‘‘section 24(a)’’ and inserting 
‘‘section 24 (determined after application of sub-
section (j) thereof)’’. 
(4) CONFORMING AMENDMENTS.— 
(A) Section 26(b)(2) of such Code is 
amended by striking ‘‘and’’ at the end of sub-
paragraph (X), by striking the period at the 
end of subparagraph (Y) and inserting ‘‘, and’’, 
and by adding at the end the following new sub-
paragraph: 
‘‘(Z) section 24(j)(2) (relating to excess 
advance payments).’’. 
(B) Section 6211(b)(4)(A) of such Code, 
as amended by the preceding provisions of this 
subtitle, is amended— 
VerDate Sep 11 2014 
23:55 Mar 02, 2021
Jkt 019200
PO 00000
Frm 00474
Fmt 6652
Sfmt 6201
E:\BILLS\H1319.PCS
H1319
kjohnson on DSK79L0C42PROD with BILLS