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(i) by striking ‘‘24(d)’’ and inserting 
‘‘24 by reason of subsections (d) and (i)(1) 
thereof’’, and 
(ii) by striking ‘‘and 6428B’’ and in-
serting ‘‘6428B, and 7527A’’. 
(C) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended— 
(i) by inserting ‘‘24,’’ before ‘‘25A’’, 
and 
(ii) by striking ‘‘ or 6431’’ and insert-
ing ‘‘6431, or 7527A’’. 
(D) The table of sections for chapter 77 of 
the Internal Revenue Code of 1986 is amended 
by inserting after the item relating to section 
7527 the following new item: 
‘‘Sec. 7527A. Advance payment of child tax credit.’’. 
(5) APPROPRIATIONS TO CARRY OUT ADVANCE 
PAYMENTS.—Immediately upon the enactment of 
this Act, in addition to amounts otherwise available, 
there are appropriated for fiscal year 2021, out of 
any money in the Treasury not otherwise appro-
priated: 
(A) $397,200,000 to remain available until 
September 30, 2022, for necessary expenses for 
the Internal Revenue Service to carry out this 
section (and the amendments made by this sec-
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tion), which shall supplement and not supplant 
any other appropriations that may be available 
for this purpose, and 
(B) $16,200,000 to remain available until 
September 30, 2022, for necessary expenses for 
the Bureau of the Fiscal Service to carry out 
this section (and the amendments made by this 
section), which shall supplement and not sup-
plant any other appropriations that may be 
available for this purpose. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxable years beginning 
after December 31, 2020. 
(2) ESTABLISHMENT
OF
ADVANCE
PAYMENT 
PROGRAM.—The Secretary of the Treasury (or the 
Secretary’s designee) shall establish the program de-
scribed in section 7527A of the Internal Revenue 
Code of 1986 as soon as practicable after the date 
of the enactment of this Act, except that the Sec-
retary shall ensure that the timing of the establish-
ment of such program does not interfere with car-
rying out section 6428B(g) as rapidly as possible. 
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SEC. 9612. APPLICATION OF CHILD TAX CREDIT IN POSSES-
SIONS. 
(a) IN GENERAL.—Section 24 of the Internal Rev-
enue Code of 1986, as amended by the preceding provi-
sions of this Act, is amended by adding at the end the 
following new subsection: 
‘‘(k) APPLICATION OF CREDIT IN POSSESSIONS.— 
‘‘(1) MIRROR CODE POSSESSIONS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
pay to each possession of the United States 
with a mirror code tax system amounts equal to 
the loss (if any) to that possession by reason of 
the application of this section (determined with-
out regard to this subsection) with respect to 
taxable years beginning after 2020. Such 
amounts shall be determined by the Secretary 
based on information provided by the govern-
ment of the respective possession. 
‘‘(B) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.—No credit shall be allowed under this 
section for any taxable year to any individual to 
whom a credit is allowable against taxes im-
posed by a possession of the United States with 
a mirror code tax system by reason of the appli-
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cation of this section in such possession for 
such taxable year. 
‘‘(C) MIRROR
CODE
TAX
SYSTEM.—For 
purposes of this paragraph, the term ‘mirror 
code tax system’ means, with respect to any 
possession of the United States, the income tax 
system of such possession if the income tax li-
ability of the residents of such possession under 
such system is determined by reference to the 
income tax laws of the United States as if such 
possession were the United States. 
‘‘(2) PUERTO RICO.— 
‘‘(A) APPLICATION TO TAXABLE YEARS IN 
2021.— 
‘‘(i) For application of refundable 
credit to residents of Puerto Rico, see sub-
section (i)(1). 
‘‘(ii) For nonapplication of advance 
payment to residents of Puerto Rico, see 
section 7527A(e)(5)(A). 
‘‘(B) APPLICATION
TO
TAXABLE
YEARS 
AFTER 2021.—In the case of any bona fide resi-
dent of Puerto Rico (within the meaning of sec-
tion 937(a)) for any taxable year beginning 
after December 31, 2021— 
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‘‘(i) the credit determined under this 
section shall be allowable to such resident, 
and 
‘‘(ii) subsection (d)(1)(B)(ii) shall be 
applied without regard to the phrase ‘in 
the case of a taxpayer with 3 or more 
qualifying children’. 
‘‘(3) AMERICAN SAMOA.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
pay to American Samoa amounts estimated by 
the Secretary as being equal to the aggregate 
benefits that would have been provided to resi-
dents of American Samoa by reason of the ap-
plication of this section for taxable years begin-
ning after 2020 if the provisions of this section 
had been in effect in American Samoa (applied 
as if American Samoa were the United States 
and without regard to the application of this 
section to bona fide residents of Puerto Rico 
under subsection (i)(1)). 
‘‘(B) DISTRIBUTION REQUIREMENT.—Sub-
paragraph (A) shall not apply unless American 
Samoa has a plan, which has been approved by 
the Secretary, under which American Samoa 
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will promptly distribute such payments to its 
residents. 
‘‘(C) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.— 
‘‘(i) IN GENERAL.—In the case of a 
taxable year with respect to which a plan 
is approved under subparagraph (B), this 
section (other than this subsection) shall 
not apply to any individual eligible for a 
distribution under such plan. 
‘‘(ii) APPLICATION
OF
SECTION
IN 
EVENT
OF
ABSENCE
OF
APPROVED 
PLAN.—In the case of a taxable year with 
respect to which a plan is not approved 
under subparagraph (B)— 
‘‘(I) if such taxable year begins 
in 2021, subsection (i)(1) shall be ap-
plied by substituting ‘bona fide resi-
dent of Puerto Rico or American 
Samoa’ for ‘bona fide resident of 
Puerto Rico’, and 
‘‘(II) if such taxable year begins 
after December 31, 2021, rules simi-
lar to the rules of paragraph (2)(B) 
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shall apply with respect to bona fide 
residents of American Samoa (within 
the meaning of section 937(a)). 
‘‘(4) TREATMENT
OF
PAYMENTS.—For pur-
poses of section 1324 of title 31, United States 
Code, the payments under this subsection shall be 
treated in the same manner as a refund due from 
a credit provision referred to in subsection (b)(2) of 
such section.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
PART 3—EARNED INCOME TAX CREDIT 
SEC. 9621. STRENGTHENING THE EARNED INCOME TAX 
CREDIT FOR INDIVIDUALS WITH NO QUALI-
FYING CHILDREN. 
(a) SPECIAL RULES FOR 2021.—Section 32 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new subsection: 
‘‘(n) SPECIAL RULES FOR INDIVIDUALS WITHOUT 
QUALIFYING CHILDREN.—In the case of any taxable year 
beginning after December 31, 2020, and before January 
1, 2022— 
‘‘(1) DECREASE IN MINIMUM AGE FOR CRED-
IT.— 
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‘‘(A) 
IN
GENERAL.—Subsection 
(c)(1)(A)(ii)(II) shall be applied by substituting 
‘the applicable minimum age’ for ‘age 25’. 
‘‘(B) APPLICABLE
MINIMUM
AGE.—For 
purposes of this paragraph, the term ‘applicable 
minimum age’ means— 
‘‘(i) except as otherwise provided in 
this subparagraph, age 19, 
‘‘(ii) in the case of a specified student 
(other than a qualified former foster youth 
or a qualified homeless youth), age 24, and 
‘‘(iii) in the case of a qualified former 
foster youth or a qualified homeless youth, 
age 18. 
‘‘(C) SPECIFIED STUDENT.—For purposes 
of this paragraph, the term ‘specified student’ 
means, with respect to any taxable year, an in-
dividual who is an eligible student (as defined 
in section 25A(b)(3)) during at least 5 calendar 
months during the taxable year. 
‘‘(D) 
QUALIFIED
FORMER
FOSTER 
YOUTH.—For purposes of this paragraph, the 
term ‘qualified former foster youth’ means an 
individual who— 
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‘‘(i) on or after the date that such in-
dividual attained age 14, was in foster care 
provided under the supervision or adminis-
tration of an entity administering (or eligi-
ble to administer) a plan under part B or 
part E of title IV of the Social Security 
Act (without regard to whether Federal as-
sistance was provided with respect to such 
child under such part E), and 
‘‘(ii) provides (in such manner as the 
Secretary may provide) consent for entities 
which administer a plan under part B or 
part E of title IV of the Social Security 
Act to disclose to the Secretary informa-
tion related to the status of such individual 
as a qualified former foster youth. 
‘‘(E) QUALIFIED HOMELESS YOUTH.—For 
purposes of this paragraph, the term ‘qualified 
homeless youth’ means, with respect to any tax-
able year, an individual who certifies, in a man-
ner as provided by the Secretary, that such in-
dividual is either an unaccompanied youth who 
is a homeless child or youth, or is unaccom-
panied, at risk of homelessness, and self-sup-
porting. 
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‘‘(2) ELIMINATION
OF
MAXIMUM
AGE
FOR 
CREDIT.—Subsection (c)(1)(A)(ii)(II) shall be ap-
plied without regard to the phrase ‘but not attained 
age 65’. 
‘‘(3) INCREASE IN CREDIT AND PHASEOUT PER-
CENTAGES.—The table contained in subsection 
(b)(1) shall be applied by substituting ‘15.3’ for 
‘7.65’ each place it appears therein. 
‘‘(4) INCREASE
IN
EARNED
INCOME
AND 
PHASEOUT AMOUNTS.— 
‘‘(A) IN GENERAL.—The table contained in 
subsection (b)(2)(A) shall be applied— 
‘‘(i) by substituting ‘$9,820’ for 
‘$4,220’, and 
‘‘(ii) by substituting ‘$11,610’ for 
‘$5,280’. 
‘‘(B) COORDINATION WITH INFLATION AD-
JUSTMENT.—Subsection (j) shall not apply to 
any dollar amount specified in this paragraph.’’. 
(b) INFORMATION RETURN MATCHING.—As soon as 
practicable, the Secretary of the Treasury (or the Sec-
retary’s delegate) shall develop and implement procedures 
to use information returns under section 6050S (relating 
to returns relating to higher education tuition and related 
expenses) to check the status of individuals as specified 
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students for purposes of section 32(n)(1)(B)(ii) of the In-
ternal Revenue Code of 1986 (as added by this section). 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 9622. TAXPAYER ELIGIBLE FOR CHILDLESS EARNED 
INCOME CREDIT IN CASE OF QUALIFYING 
CHILDREN WHO FAIL TO MEET CERTAIN 
IDENTIFICATION REQUIREMENTS. 
(a) IN GENERAL.—Section 32(c)(1) of the Internal 
Revenue Code of 1986 is amended by striking subpara-
graph (F). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 9623. CREDIT ALLOWED IN CASE OF CERTAIN SEPA-
RATED SPOUSES. 
(a) IN GENERAL.—Section 32(d) of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘MARRIED INDIVIDUALS.—In 
the case of’’ and inserting the following: ‘‘MARRIED 
INDIVIDUALS.— 
‘‘(1) IN GENERAL.—In the case of’’, and 
(2) by adding at the end the following new 
paragraph: 
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‘‘(2) DETERMINATION OF MARITAL STATUS.— 
For purposes of this section— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), marital status shall be deter-
mined under section 7703(a). 
‘‘(B) SPECIAL
RULE
FOR
SEPARATED 
SPOUSE.—An individual shall not be treated as 
married if such individual— 
‘‘(i) is married (as determined under 
section 7703(a)) and does not file a joint 
return for the taxable year, 
‘‘(ii) resides with a qualifying child of 
the individual for more than one-half of 
such taxable year, and 
‘‘(iii)(I) during the last 6 months of 
such taxable year, does not have the same 
principal place of abode as the individual’s 
spouse, or 
‘‘(II) has a decree, instrument, or 
agreement (other than a decree of divorce) 
described in section 121(d)(3)(C) with re-
spect to the individual’s spouse and is not 
a member of the same household with the 
individual’s spouse by the end of the tax-
able year.’’. 
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(A) by striking ‘‘subsections (b)(2)(A) and 
(i)(1)’’ and inserting ‘‘subsection (b)(2)(A)’’, 
and 
(B) by striking ‘‘and’’ at the end, 
(3) by striking the period at the end of sub-
paragraph (B)(ii) and inserting ‘‘, and’’, and 
(4) by inserting after subparagraph (B)(ii) the 
following new clause: 
‘‘(iii) in the case of the $10,000 
amount in subsection (i)(1), ‘calendar year 
2020’ for ‘calendar year 2016’.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 9625. APPLICATION OF EARNED INCOME TAX CREDIT 
IN POSSESSIONS OF THE UNITED STATES. 
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 7530. APPLICATION OF EARNED INCOME TAX CREDIT 
TO POSSESSIONS OF THE UNITED STATES. 
‘‘(a) PUERTO RICO.— 
‘‘(1) IN GENERAL.—With respect to calendar 
year 2021 and each calendar year thereafter, the 
Secretary shall, except as otherwise provided in this 
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subsection, make payments to Puerto Rico equal 
to— 
‘‘(A) the specified matching amount for 
such calendar year, plus 
‘‘(B) in the case of calendar years 2021 
through 2025, the lesser of— 
‘‘(i) the expenditures made by Puerto 
Rico during such calendar year for edu-
cation efforts with respect to individual 
taxpayers and tax return preparers relat-
ing to the earned income tax credit, or 
‘‘(ii) $1,000,000. 
‘‘(2) REQUIREMENT TO REFORM EARNED IN-
COME TAX CREDIT.—The Secretary shall not make 
any payments under paragraph (1) with respect to 
any calendar year unless Puerto Rico has in effect 
an earned income tax credit for taxable years begin-
ning in or with such calendar year which (relative to 
the earned income tax credit which was in effect for 
taxable years beginning in or with calendar year 
2019) increases the percentage of earned income 
which is allowed as a credit for each group of indi-
viduals with respect to which such percentage is sep-
arately stated or determined in a manner designed 
to substantially increase workforce participation. 
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‘‘(3) SPECIFIED MATCHING AMOUNT.—For pur-
poses of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘specified 
matching amount’ means, with respect to any 
calendar year, the lesser of— 
‘‘(i) the excess (if any) of— 
‘‘(I) the cost to Puerto Rico of 
the earned income tax credit for tax-
able years beginning in or with such 
calendar year, over 
‘‘(II) the base amount for such 
calendar year, or 
‘‘(ii) the product of 3, multiplied by 
the base amount for such calendar year. 
‘‘(B) BASE AMOUNT.— 
‘‘(i) BASE AMOUNT FOR 2021.—In the 
case of calendar year 2021, the term ‘base 
amount’ means the greater of— 
‘‘(I) the cost to Puerto Rico of 
the earned income tax credit for tax-
able years beginning in or with cal-
endar year 2019 (rounded to the 
nearest multiple of $1,000,000), or 
‘‘(II) $200,000,000. 
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‘‘(ii) INFLATION
ADJUSTMENT.—In 
the case of any calendar year after 2021, 
the term ‘base amount’ means the dollar 
amount determined under clause (i) in-
creased 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 such calendar year, determined by 
substituting ‘calendar year 2020’ for 
‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any amount determined under this clause 
shall be rounded to the nearest multiple of 
$1,000,000. 
‘‘(4) RULES RELATED TO PAYMENTS.— 
‘‘(A) TIMING
OF
PAYMENTS.—The Sec-
retary shall make payments under paragraph 
(1) for any calendar year— 
‘‘(i) after receipt of such information 
as the Secretary may require to determine 
such payments, and 
‘‘(ii) except as provided in clause (i), 
within a reasonable period of time before 
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the due date for individual income tax re-
turns (as determined under the laws of 
Puerto Rico) for taxable years which began 
on the first day of such calendar year. 
‘‘(B) INFORMATION.—The Secretary may 
require the reporting of such information as the 
Secretary may require to carry out this sub-
section. 
‘‘(C) 
DETERMINATION
OF
COST
OF 
EARNED INCOME TAX CREDIT.—For purposes 
of this subsection, the cost to Puerto Rico of 
the earned income tax credit shall be deter-
mined by the Secretary on the basis of the laws 
of Puerto Rico and shall include reductions in 
revenues received by Puerto Rico by reason of 
such credit and refunds attributable to such 
credit, but shall not include any administrative 
costs with respect to such credit. 
‘‘(b) POSSESSIONS WITH MIRROR CODE TAX SYS-
TEMS.— 
‘‘(1) IN GENERAL.—With respect to calendar 
year 2021 and each calendar year thereafter, the 
Secretary shall, except as otherwise provided in this 
subsection, make payments to the Virgin Islands, 
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