I 
114TH CONGRESS 
2D SESSION 
H. R. 4693 
To amend the Internal Revenue Code of 1986 to provide a refundable and 
advanceable tax credit for individuals with young children. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 3, 2016 
Ms. DELAURO (for herself, Ms. PELOSI, and Mr. LEVIN) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a refundable and advanceable tax credit for individuals 
with young children. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; FINDING. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Young Child Tax Credit Act’’. 
(b) FINDINGS.—Congress finds the following: 
(1) Economists have found similar effects of the 
importance of income in the earliest years with re-
turns to school achievement. 
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(2) Pediatricians and other child development 
experts have long talked about the critical impor-
tance of the earliest years of life. 
(3) Young children, including babies and tod-
dlers, are the poorest people in the country by age. 
(4) With the recent improvements signed into 
law in December, together, the Child Tax Credit and 
Earned Income Tax Credit now lift more children 
out of poverty than any other Federal policies. 
(5) Families with young children receive the 
smallest child tax credits, despite the fact that the 
economic literature suggests that these credits have 
particularly beneficial effects for families with young 
children. 
(6) Economists have found that large fluctua-
tions in a family’s income can be detrimental to the 
development of young children. Research on scarcity 
have found it is hard for parents to focus on chil-
dren if they are worrying about having sufficient in-
come to meet their family’s needs. 
SEC. 2. YOUNG CHILD TAX CREDIT. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 36B the fol-
lowing new section: 
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‘‘SEC. 36C. YOUNG CHILD TAX CREDIT. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this subtitle for the taxable year an amount equal to 
the product of— 
‘‘(1) the applicable dollar amount, multiplied by 
‘‘(2) the number of qualifying children of the 
taxpayer for which the taxpayer is allowed a deduc-
tion under section 151 and who (as of the close of 
such taxable year) have not attained age 3. 
‘‘(b) APPLICABLE DOLLAR AMOUNT.—For purposes 
of this section, the term ‘applicable dollar amount’ means 
with respect to any taxable year, the product of— 
‘‘(1) 1.5, multiplied by 
‘‘(2) the dollar amount in effect under section 
24(a) for the taxable year. 
‘‘(c) LIMITATION BASED ON ADJUSTED GROSS IN-
COME.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowable under subsection (a) shall be reduced (but 
not below zero) by the phaseout amount for each 
$1,000 (or fraction thereof) by which the taxpayer’s 
modified adjusted gross income (as defined in sec-
tion 24(b)(1)) exceeds the threshold amount (as de-
fined in section 24(b)(2)). 
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‘‘(2) PHASEOUT
AMOUNT.—For purposes of 
this subsection, the term ‘phaseout amount’ means 
1.5 multiplied by the first dollar amount in section 
24(b)(1). 
‘‘(d) QUALIFYING CHILD.—For purposes of this sec-
tion, the term ‘qualifying child’ has the meaning given 
such term by section 24(c). 
‘‘(e) IDENTIFICATION
REQUIREMENT.—No credit 
shall be allowed under this section to a taxpayer with re-
spect to any qualifying child unless the taxpayer includes 
the name and taxpayer identification number of such 
qualifying child on the return of tax for the taxable year. 
‘‘(f) RECONCILIATION
OF CREDIT
AND ADVANCE 
CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowed under this section for any taxable year shall 
be reduced (but not below zero) by the aggregate 
amount of any advance payments of such credit 
under section 7527A for such taxable year. 
‘‘(2) EXCESS ADVANCE PAYMENTS.—If the ag-
gregate amount of advance payments under section 
7527A for the taxable year exceed the amount of the 
credit allowed under this section for such taxable 
year (determined without regard to paragraph (1)), 
the tax imposed by this chapter for such taxable 
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year shall be increased by the amount of such ex-
cess.’’. 
(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 
Act, the Secretary shall establish a program for making 
advance payments of the credit allowed under section 36C 
on a monthly basis, or as frequently as the Secretary de-
termines to be administratively feasible, to taxpayers al-
lowed such credit (determined without regard to section 
36C(f)(1)). 
‘‘(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 subsection (a) of section 36C with respect 
to such taxpayer (determined without regard to sub-
sections (c) and (f) of such section). Such program shall 
make reasonable efforts to apply the limitation of section 
36C(c) with respect to payments made under such pro-
gram.’’. 
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(c) CONFORMING AMENDMENTS.— 
(1) Section 152(f)(6)(B) of such Code is 
amended by striking ‘‘and’’ at the end of clause (iii), 
by striking the period at the end of clause (iv) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(v) the credit under section 36C (re-
lating to young child tax credit).’’. 
(2) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 
(3) Section 6213(g)(2) of such Code is amend-
ed by striking ‘‘and’’ at the end of subparagraph 
(P), by striking the period at the end of subpara-
graph (Q) and inserting ‘‘, and’’, and by inserting 
after subparagraph (Q) the following new subpara-
graph: 
‘‘(R) an omission of a correct TIN re-
quired under section 36C(e) (relating to young 
child tax credit) to be included on a return.’’. 
(4) Section 6402(m) of such Code is amended 
by striking ‘‘or 32’’ and inserting ‘‘, 32 or 36C’’. 
(5) Section 6695(g) of such Code is amended 
by striking ‘‘or 32’’ and inserting ‘‘32, or 36C’’. 
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(6) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36C,’’ after 
‘‘36B,’’. 
(7) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after the 
item relating to section 36B the following new item: 
‘‘Sec. 36C. Young child tax credit.’’. 
(8) 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.’’. 
(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. 
Æ 
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