I 
116TH CONGRESS 
1ST SESSION H. R. 3157 
To amend the Internal Revenue Code of 1986 to expand the earned income 
and child tax credits, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 6, 2019 
Mr. KILDEE (for himself and Mr. EVANS) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to 
the Committee on Natural Resources, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to expand 
the earned income and child tax credits, 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; AMENDMENT OF 1986 CODE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Working Families Tax Relief Act of 2019’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
SEC. 2. EXPANSION OF EARNED INCOME CREDIT. 
(a) CREDIT PERCENTAGE; PHASEOUT PERCENT-
AGE.—The table contained in paragraph (1) of section 
32(b) is amended to read as follows: 
‘‘In the case of an eligible individual with: 
The 
credit 
percentage is: 
The 
phaseout 
percentage is: 
1 qualifying child ............................................
42.5 
15.98
2 qualifying children .......................................
21.06
3 or more qualifying children .........................
52.5 
21.06
No qualifying children ....................................
15.98.’’. 
(b) 
EARNED
INCOME
AMOUNT; 
PHASEOUT 
AMOUNT.— 
(1) IN GENERAL.—The table contained in sub-
paragraph (A) of section 32(b)(2) is amended to 
read as follows: 
‘‘In the case of an eligible individual with: 
The 
earned income 
amount is: 
The 
phaseout 
amount is: 
1 qualifying child ............................................
$10,180 
$18,660
2 or more qualifying children .........................
$14,290 
$18,660
No qualifying children ....................................
$10,180 
$11,380.’’. 
(2) JOINT FILERS.—Subparagraph (B) of sec-
tion 32(b)(2) is amended by striking ‘‘$5,000’’ and 
inserting ‘‘$5,690’’. 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(3) ADJUSTMENT FOR INFLATION.—Paragraph 
(1) of section 32(j) is amended— 
(A) by striking ‘‘after 2015’’ and inserting 
‘‘after 2018’’; 
(B) by striking ‘‘subsections (b)(2)(A) 
and’’ in subparagraph (B)(i) and inserting 
‘‘subsection’’; 
(C) by striking ‘‘the $5,000 amount in 
subsection (b)(2)(B)’’ in subparagraph (B)(ii) 
and inserting ‘‘amounts in subsection (b)(2)’’; 
and 
(D) by striking ‘‘calendar year 2008’’ in 
subparagraph (B)(ii) and inserting ‘‘calendar 
year 2017’’. 
(c) AGE OF ELIGIBLE INDIVIDUAL.—Clause (ii) of 
section 32(c)(1)(A) is amended— 
(1) by striking ‘‘age 25’’ in subclause (II) and 
inserting ‘‘age 19’’; 
(2) by striking ‘‘age 65’’ in subclause (II) and 
inserting ‘‘age 68’’; 
(3) by striking ‘‘and’’ at the end of subclause 
(II); 
(4) by striking the period at the end of sub-
clause (III) and inserting ‘‘, and’’; and 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(5) by adding at the end the following new sub-
clause: 
‘‘(IV) in the case of an individual 
who has not attained age 25 before 
the close of the taxable year, such in-
dividual is not a student (as defined 
in section 152(f)(2)).’’. 
(d) ADVANCE PAYMENT OF EARNED INCOME CRED-
IT.— 
(1) IN GENERAL.—Chapter 25 of subtitle C is 
amended by inserting after section 3506 the fol-
lowing 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-
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 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
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— 
‘‘(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-
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
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 of the credit provided under 
section 32 as determined— 
‘‘(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. 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
‘‘(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 2016’ in subparagraph 
(A)(ii) thereof. 
‘‘(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 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
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, 
‘‘(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, 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
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.— 
‘‘(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. 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
‘‘(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— 
‘‘(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 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
‘‘(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.’’. 
(2) 
COORDINATION
WITH
ADVANCE
PAY-
MENTS.—Section 32 is amended by inserting after 
subsection (f) the following new subsection: 
‘‘(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-
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
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.’’. 
(3) FILING REQUIREMENT.—Section 6012(a) is 
amended— 
(A) in paragraph (7), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (8), by adding ‘‘and’’ at 
the end; and 
(C) 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.’’. 
(4) 
RECEIPTS
FOR
EMPLOYEES.—Section 
6051(a) is amended by inserting after paragraph (6) 
the following new paragraph: 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
‘‘(7) the total amount paid to the employee 
under section 3507 (relating to advance payment of 
earned income credit),’’. 
(5) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 25 of subtitle C is amended by in-
serting after the item relating to section 3506 the 
following new item: 
‘‘Sec. 3507. Advance payment of earned income credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2018. 
SEC. 3. PERMANENT EXPANSION AND MODIFICATION OF 
CHILD TAX CREDIT. 
(a) PERMANENCE OF CERTAIN SPECIAL RULES.— 
(1) CREDIT AMOUNT.—Subsection (a) of section 
24 is amended by striking ‘‘$1,000’’ and inserting 
‘‘$2,000’’. 
(2) THRESHOLD AMOUNT.—Paragraph (2) of 
section 24(b) is amended— 
(A) by striking ‘‘$110,000’’ in subpara-
graph (A) and inserting ‘‘$200,000’’; 
(B) by striking ‘‘$75,000’’ in subpara-
graph (B) and inserting ‘‘$150,000’’; and 
(C) by striking ‘‘$55,000’’ in subparagraph 
(C) and inserting ‘‘$100,000’’. 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(3) PARTIAL CREDIT ALLOWED FOR CERTAIN 
OTHER
DEPENDENTS; ELIMINATION
OF
MAXIMUM 
AMOUNT OF REFUNDABLE CREDIT.—Subsection (h) 
of section 24 is amended— 
(A) by striking paragraphs (1), (2), (3), 
(5), and (6) and by redesignating paragraphs 
(4) and (7) as paragraphs (1) and (2), respec-
tively; 
(B) by striking ‘‘(after the application of 
paragraph (2))’’ in subparagraph (A) of para-
graph (1), as so redesignated; 
(C) by striking ‘‘paragraph (7)’’ in sub-
paragraph (C) of paragraph (1), as so redesig-
nated, and inserting ‘‘paragraph (2)’’; 
(D) by inserting ‘‘for a taxable year begin-
ning after December 31, 2017, and before Jan-
uary 1, 2026,’’ after ‘‘under this section’’ in 
paragraph (2), as so redesignated; and 
(E) by striking ‘‘FOR TAXABLE YEARS 
2018 THROUGH 2025’’ in the heading. 
(b) INCREASE IN CREDIT FOR YOUNG CHILDREN.— 
Subsection (a) of section 24, as amended by subsection 
(a)(1), is amended by striking ‘‘$2,000’’ and inserting 
‘‘$2,000 ($3,000 in the case of a qualifying child who has 
not attained age 6)’’. 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(c) ADJUSTMENT FOR INFLATION.—Section 24 is 
amended by redesignating subsection (h), as amended by 
subsection (a)(3) of this section, as subsection (i) and by 
inserting after subsection (g) the following new subsection: 
‘‘(h) ADJUSTMENT FOR INFLATION.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning after 2019, each of the dollar 
amounts 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 2018’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
‘‘(2) ROUNDING.—If any amount as adjusted 
under paragraph (1) is not a multiple of $50, such 
amount shall be rounded to the next lowest multiple 
of $50.’’. 
(d) MODIFICATION OF QUALIFYING CHILD DEFINI-
TION.—Paragraph (1) of section 24(c) is amended by in-
serting ‘‘, determined without regard to paragraph (1)(D) 
thereof’’ after ‘‘section 152(c)’’. 
(e) TREATMENT AS FULLY REFUNDABLE.— 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(1) CREDIT MOVED TO SUBPART RELATING TO 
REFUNDABLE CREDITS.— 
(A) IN GENERAL.—The Internal Revenue 
Code of 1986 is amended— 
(i) by redesignating section 24, as 
amended by this section, as section 36C; 
and 
(ii) by moving such section, as so re-
designated, from subpart A of part IV of 
subchapter A of chapter 1 to the location 
immediately after section 36B in subpart 
C of part IV of subchapter A of chapter 1. 
(B) TECHNICAL AMENDMENTS.— 
(i) Subsection (a) of section 36C, as 
moved and redesignated by subparagraph 
(A), is amended by striking ‘‘this chapter’’ 
and inserting ‘‘this subtitle’’. 
(ii) Section 36C, as so moved and re-
designated, is amended— 
(I) by striking subsection (d); 
and 
(II) by redesignating subsection 
(i) as subsection (d), and by moving 
such subsection to the location imme-
diately after subsection (c). 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(C) PARTIAL CREDIT FOR OTHER DEPEND-
ENTS
NONREFUNDABLE.—Paragraph (1) of 
subsection (d) of section 36C, as moved and re-
designated by subparagraph (B)(ii), is amended 
by adding at the end the following new sub-
paragraph: 
‘‘(D) PORTION
OF
CREDIT
NONREFUND-
ABLE.—The amount of the credit allowed under 
this paragraph— 
‘‘(i) shall not be treated as a credit al-
lowed under this subpart, and 
‘‘(ii) shall not be taken into account in 
determining the amount of the credit 
under this section for purposes of section 
7527A.’’. 
(D) CLERICAL AMENDMENTS.— 
(i) The table of sections for subpart A 
of part IV of subchapter A of chapter 1 is 
amended by striking the item relating to 
section 24. 
(ii) The table of sections for subpart 
C of part IV of subchapter A of chapter 1 
is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 36C. Child tax credit.’’. 
(2) ADVANCE PAYMENT OF CREDIT.— 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
‘‘(2) APPLICATION
OF
THRESHOLD
AMOUNT 
LIMITATION.—The program described in subsection 
(a) shall make reasonable efforts to apply the limita-
tion of section 36C(b) with respect to payments 
made under such program.’’. 
(C) CLERICAL AMENDMENT.—The table of 
sections for chapter 77 is amended by inserting 
after the item relating to section 7527 the fol-
lowing new item: 
‘‘Sec. 7527A. Advance payment of child tax credit.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Subparagraph (B) of section 45R(f)(3) 
is amended to read as follows: 
‘‘(B) SPECIAL RULE.—Any amounts paid 
pursuant to an agreement under section 3121(l) 
(relating to agreements entered into by Amer-
ican employers with respect to foreign affiliates) 
which are equivalent to the taxes referred to in 
subparagraph (A) shall be treated as taxes re-
ferred to in such subparagraph.’’. 
(B) Section 152(f)(6)(B)(ii) is amended by 
striking ‘‘section 24’’ and inserting ‘‘section 
36C’’. 
(C) Paragraph (26) of section 501(c) is 
amended in the flush matter at the end by 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
striking ‘‘section 24(c))’’ and inserting ‘‘section 
36C(c))’’. 
(D) Section 6211(b)(4)(A) is amended— 
(i) by striking ‘‘24(d),’’; and 
(ii) by striking ‘‘and 36B, 168(k)(4)’’ 
and inserting ‘‘36B, and 36C’’. 
(E) Section 6213(g)(2) is amended— 
(i) in subparagraph (I), by striking 
‘‘section 24(e)’’ and inserting ‘‘section 
36C(e)’’; 
(ii) in subparagraph (L), by striking 
‘‘24, or 32’’ and inserting ‘‘32, or 36C’’; 
and 
(iii) in subparagraph (P)— 
(I) by striking ‘‘24(g)(2)’’ and in-
serting ‘‘36C(g)(2)’’; and 
(II) by striking ‘‘section 24’’ and 
inserting ‘‘section 36C’’. 
(F) Section 6402(m) is amended by strik-
ing ‘‘section 24 (by reason of subsection (d) 
thereof) or 32’’ and inserting ‘‘section 32 or 
36C’’. 
(G) Section 6695(g)(2) is amended by 
striking ‘‘24, 25A(a)(1), or 32’’ and inserting 
‘‘25A(a)(1), 32, or 36C’’. 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(H) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘, 36C(a)’’ after ‘‘36B’’. 
(I) Section 1613(a)(11) of the Social Secu-
rity Act (42 U.S.C. 1382b(a)(11)) is amended 
by striking ‘‘section 24 of the Internal Revenue 
Code of 1986 (relating to child tax credit) by 
reason of subsection (d) thereof’’ and inserting 
‘‘section 36C of the Internal Revenue Code of 
1986 (relating to child tax credit), and any pay-
ment made to such individual (or such spouse) 
under section 7527A of such Code (relating to 
advance payment of child tax credit)’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2018. 
SEC. 4. EARNED INCOME CREDIT EXPANSION FOR PUERTO 
RICO. 
(a) IN GENERAL.—Subsequent to an amendment of 
the Puerto Rico Internal Revenue Code of 2011 expanding 
the earned income credit added by Act 257 in a similar 
manner as the amendments made by section 2 of this Act, 
the Secretary of the Treasury shall make annual payments 
to Puerto Rico in the amount determined under subsection 
(b). Such payments shall be made within a reasonable pe-
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
riod of time before the due date for the income tax in 
Puerto Rico each year, and shall be made only if Puerto 
Rico provides to the Secretary of the Treasury— 
(1) an estimate, certified by the Financial Over-
sight and Management Board for Puerto Rico, of 
the cost of such expansion in the first year; and 
(2) annually thereafter, a report of the actual 
cost of such expansion in the preceding year and an 
estimate, certified by such Board, of the cost of such 
expansion in the year of the report. 
(b) AMOUNT DETERMINED.—For purposes of sub-
section (a), the amount determined with respect to any 
year is so much of the estimated cost (as reported under 
subsection (a)) of the expansion of the earned income 
credit in Puerto Rico for such year as does not exceed 
$204,000,000, as applicable— 
(1) reduced by the excess, if any, of— 
(A) the amount of the payments made to 
Puerto Rico under this section for the preceding 
year; over 
(B) the actual cost (as reported under sub-
section (a)) of the expansion of the earned in-
come credit in Puerto Rico for such preceding 
year; or 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(2) increased by the excess, if any, of the 
amount described in paragraph (1)(B) over the 
amount described in paragraph (1)(A). 
(c) COST OF EXPANSION.—For purposes of this sec-
tion, the cost of expanding the earned income credit in 
Puerto Rico as described in subsection (a) shall include 
only the cost of the amendments made as described in 
such subsection, and shall not include the cost of laws in 
effect as of the date of the enactment of this Act. 
(d) REPORTING REQUIREMENTS.—The Treasury of 
Puerto Rico shall submit to the Secretary of the Treasury 
an annual report on the earned income credit of Puerto 
Rico, including the number of beneficiaries, average bene-
fits for different households, participation rates for eligible 
populations, error rates and other compliance matters, 
and the effects of the credit on labor force participation 
and poverty reduction. 
(e) OUTREACH GRANT.—In addition to the payments 
under subsection (a), the Secretary of the Treasury shall 
make a one-time grant in the amount of $5,000,000 to 
Puerto Rico for the purpose of taxpayer education efforts 
relating to the earned income credit, including education 
of paid preparers. 
(f) APPROPRIATIONS.—Such sums as are necessary, 
not to exceed— 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(1) $209,000,000 in the first year after enact-
ment of the amendment described in subsection (a); 
and 
(2) except as provided in subsection (g), 
$204,000,000 in each year thereafter (as long as 
Puerto Rico maintains an earned income credit as 
described in subsection (a)), 
are hereby appropriated to the Secretary of the Treasury 
to carry out the purposes of this section. 
(g) ADJUSTMENT FOR INFLATION.— 
(1) IN GENERAL.—For each calendar year be-
ginning after the year described in subsection (f)(1), 
the $204,000,000 amount under subsections (b) and 
(f)(2) 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) of the Internal 
Revenue Code of 1986, determined by sub-
stituting the calendar year preceding the year 
described in subsection (f)(1) for calendar year 
2016 in subparagraph (A)(ii) thereof. 
(2) ROUNDING.—If any amount adjusted under 
paragraph (1) is not a multiple of $500, such 
amount shall be rounded to the next lowest multiple 
of $500. 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
SEC. 5. REGULATION OF TAX RETURN PREPARERS. 
(a) IN GENERAL.—Subsection (a) of section 330 of 
title 31, United States Code, is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) regulate— 
‘‘(A) the practice of representatives of per-
sons before the Department of the Treasury; 
and 
‘‘(B) the practice of tax return preparers; 
and’’; and 
(2) in paragraph (2)— 
(A) by inserting ‘‘or a tax return preparer 
to prepare tax returns’’ after ‘‘practice’’; 
(B) by inserting ‘‘or tax return preparer’’ 
before ‘‘demonstrate’’; and 
(C) by inserting ‘‘or in preparing their tax 
returns, claims for refund, or documents in con-
nection with tax returns or claims for refund’’ 
after ‘‘cases’’ in subparagraph (D). 
(b) AUTHORITY TO SANCTION REGULATED TAX RE-
TURN PREPARERS.—Subsection (c) of section 330 of title 
31, United States Code, is amended— 
(1) by striking ‘‘before the Department’’; 
(2) by inserting ‘‘or tax return preparer’’ after 
‘‘representative’’ each place it appears; and 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(3) in paragraph (4), by striking ‘‘misleads or 
threatens’’ and all that follows and inserting ‘‘mis-
leads or threatens— 
‘‘(A) any person being represented or any 
prospective person being represented; or 
‘‘(B) any person or prospective person 
whose tax return, claim for refund, or document 
in connection with a tax return or claim for re-
fund, is being or may be prepared.’’. 
(c) MINIMUM COMPETENCY STANDARDS FOR TAX 
RETURN PREPARERS.—Section 330 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(f) TAX RETURN PREPARERS.— 
‘‘(1) IN
GENERAL.—Any tax return preparer 
shall demonstrate minimum competency standards 
under this subsection by— 
‘‘(A) obtaining an identifying number for 
securing proper identification of such preparer 
as described in section 6109(a)(4) of the Inter-
nal Revenue Code of 1986; 
‘‘(B) satisfying any examination and an-
nual continuing education requirements as pre-
scribed by the Secretary; and 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
‘‘(C) completing a background check ad-
ministered by the Secretary. 
‘‘(2) EXEMPTION.—The Secretary shall exempt 
tax return preparers who have been subject to com-
parable examination, continuing education require-
ments, and background checks administered by the 
Secretary or any comparable State licensing pro-
gram. Such exemption shall extend directly to indi-
viduals who are supervised by such preparers and 
are not required to secure an identification number 
under section 6109(a)(4).’’. 
(d) TAX RETURN PREPARER DEFINED.—Section 
330 of title 31, United States Code, as amended by sub-
section (c), is amended by adding at the end the following 
new subsection: 
‘‘(g) TAX RETURN PREPARER.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘tax return pre-
parer’ has the meaning given such term under sec-
tion 7701(a)(36) of the Internal Revenue Code of 
1986. 
‘‘(2) TAX RETURN.—The term ‘tax return’ has 
the meaning given to the term ‘return’ under section 
6696(e)(1) of the Internal Revenue Code of 1986. 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
‘‘(3) CLAIM FOR REFUND.—The term ‘claim for 
refund’ has the meaning given such term under sec-
tion 6696(e)(2) of such Code.’’. 
(e) AMENDMENTS WITH RESPECT TO IDENTIFYING 
NUMBER.— 
(1) IN GENERAL.—Section 6109(a) is amended 
by striking paragraph (4) and inserting the fol-
lowing: 
‘‘(4) FURNISHING
IDENTIFYING
NUMBER
OF 
TAX RETURN PREPARER.— 
‘‘(A) IN GENERAL.—Any return or claim 
for refund prepared by a tax return preparer 
shall bear such identifying number for securing 
proper identification of such preparer, his em-
ployer, or both, as may be prescribed. For pur-
poses of this paragraph, the terms ‘return’ and 
‘claim for refund’ have the respective meanings 
given to such terms by section 6696(e). 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply to any tax return preparer who 
prepares a return or claim for refund under the 
supervision and direction of a tax return pre-
parer who signs the return or claim for refund 
and is a certified public accountant, an attorney 
or enrolled agent.’’. 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(2) CLARIFICATION
OF
RESCISSION
AUTHOR-
ITY.—Section 6109 is amended by inserting after 
subsection (d) the following new subsection: 
‘‘(e) AUTHORITY TO RESCIND IDENTIFYING NUM-
BER OF TAX RETURN PREPARER.— 
‘‘(1) IN GENERAL.—The Secretary may rescind 
an identifying number issued under subsection 
(a)(4) if— 
‘‘(A) after notice and opportunity for a 
hearing, the preparer is shown to be incom-
petent or disreputable (as such terms are used 
in subsection (c) of section 330 of title 31, 
United States Code), and 
‘‘(B) rescinding the identifying number 
would promote compliance with the require-
ments of this title and effective tax administra-
tion. 
‘‘(2) RECORDS.—If an identifying number is re-
scinded under paragraph (1), the Secretary shall 
place in the file in the Office of the Director of Pro-
fessional Responsibility the opinion of the Secretary 
with respect to the determination, including— 
‘‘(A) a statement of the facts and cir-
cumstances relating to the determination, and 
‘‘(B) the reasons for the rescission.’’. 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS
(f) GAO STUDY AND REPORT ON THE EXCHANGE 
OF INFORMATION BETWEEN THE IRS AND STATE TAX-
ATION AUTHORITIES.— 
(1) IN GENERAL.—Not later than 18 months 
after the date of the enactment of this Act, the 
Comptroller General shall conduct a study and sub-
mit to Congress a report on the sharing of informa-
tion between the Secretary of the Treasury and 
State authorities, as authorized under section 
6103(d) of the Internal Revenue Code of 1986, re-
garding identification numbers issued to paid tax re-
turn preparers and return preparer minimum stand-
ards. 
(2) INCREASED INFORMATION SHARING.—The 
study and report described in paragraph (1) shall in-
clude an analysis of the impact that increased infor-
mation sharing between Federal and State authori-
ties would have on efforts to enforce minimum 
standards on paid tax return preparers. 
Æ 
VerDate Sep 11 2014 
01:02 Jun 13, 2019
Jkt 089200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6301
E:\BILLS\H3157.IH
H3157
kjohnson on DSK79L0C42 with BILLS