I 
116TH CONGRESS 
1ST SESSION H. R. 1560 
To amend the Internal Revenue Code of 1986 to make the child tax credit 
fully refundable, establish an increased child tax credit for young chil-
dren, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 6, 2019 
Ms. DELAURO (for herself, Ms. DELBENE, Ms. ADAMS, Mr. AGUILAR, Ms. 
BARRAGA´N, Ms. BASS, Mrs. BEATTY, Mr. BEYER, Mr. BISHOP of Geor-
gia, Mr. BLUMENAUER, Ms. BLUNT ROCHESTER, Ms. BONAMICI, Mr. 
BRENDAN F. BOYLE of Pennsylvania, Mr. BROWN of Maryland, Ms. 
BROWNLEY
of California, Mr. BUTTERFIELD, Mr. CARBAJAL, Mr. 
CA´RDENAS, Mr. CARSON of Indiana, Mr. CARTWRIGHT, Ms. CASTOR of 
Florida, Mr. CASTRO of Texas, Ms. JUDY CHU of California, Mr. 
CICILLINE, Mr. CISNEROS, Ms. CLARK of Massachusetts, Ms. CLARKE of 
New York, Mr. CLAY, Mr. CLEAVER, Mr. CLYBURN, Mr. COHEN, Mr. 
CONNOLLY, Mr. COURTNEY, Mr. CUMMINGS, Mr. DANNY K. DAVIS of Il-
linois, Ms. DEAN, Mr. DEFAZIO, Ms. DEGETTE, Mrs. DEMINGS, Mr. 
DESAULNIER, Mr. DEUTCH, Mrs. DINGELL, Mr. MICHAEL F. DOYLE of 
Pennsylvania, Ms. ESCOBAR, Ms. ESHOO, Mr. ESPAILLAT, Mr. EVANS, 
Mr. FOSTER, Ms. FRANKEL, Ms. FUDGE, Mr. GALLEGO, Mr. 
GARAMENDI, Mr. GARCI´A of Illinois, Ms. GARCIA of Texas, Mr. GOMEZ, 
Mr. GRIJALVA, Ms. HAALAND, Mr. HASTINGS, Mrs. HAYES, Mr. HECK, 
Mr. HIGGINS of New York, Mr. HIMES, Mr. HOYER, Mr. HUFFMAN, Ms. 
JACKSON LEE, Ms. JAYAPAL, Ms. JOHNSON of Texas, Mr. JOHNSON of 
Georgia, Ms. KAPTUR, Mr. KEATING, Ms. KELLY of Illinois, Mr. KEN-
NEDY, Mr. KHANNA, Mr. KILDEE, Mr. KILMER, Mrs. KIRKPATRICK, Ms. 
KUSTER of New Hampshire, Mr. JEFFRIES, Mr. LANGEVIN, Mr. LARSEN 
of Washington, Mr. LARSON of Connecticut, Mrs. LAWRENCE, Ms. LEE 
of California, Mrs. LEE of Nevada, Mr. LEVIN of Michigan, Mr. LEWIS, 
Mr. TED LIEU of California, Mr. LOEBSACK, Ms. LOFGREN, Mr. 
LOWENTHAL, Mrs. LOWEY, Mr. LUJA´N, Mr. LYNCH, Mr. MALINOWSKI, 
Mrs. CAROLYN B. MALONEY of New York, Mr. SEAN PATRICK MALONEY 
of New York, Ms. MATSUI, Ms. MCCOLLUM, Mr. MCEACHIN, Mr. 
MCGOVERN, Mr. MCNERNEY, Mr. MEEKS, Ms. MENG, Ms. MOORE, Mr. 
MORELLE, Mr. MOULTON, Mr. NADLER, Mrs. NAPOLITANO, Mr. 
NEGUSE, Ms. NORTON, Ms. OCASIO-CORTEZ, Ms. OMAR, Mr. PALLONE, 
Mr. PANETTA, Mr. PASCRELL, Mr. PERLMUTTER, Ms. PINGREE, Ms. 
PLASKETT, Mr. POCAN, Mr. PRICE of North Carolina, Mr. QUIGLEY, Mr. 
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NORCROSS, Mr. RASKIN, Miss RICE of New York, Mr. RICHMOND, Mr. 
ROUDA, Ms. ROYBAL-ALLARD, Mr. RUPPERSBERGER, Mr. RUSH, Mr. 
RYAN, Ms. SA´NCHEZ, Mr. SAN NICOLAS, Mr. SARBANES, Ms. SCHA-
KOWSKY, Ms. SCHRIER, Mr. SCOTT of Virginia, Mr. DAVID SCOTT of 
Georgia, Mr. SERRANO, Ms. SEWELL of Alabama, Ms. SHALALA, Mr. 
SIRES, Mr. SOTO, Ms. SPEIER, Mr. SUOZZI, Mr. TAKANO, Mr. THOMP-
SON of Mississippi, Ms. TITUS, Ms. TLAIB, Mr. TONKO, Mrs. TORRES of 
California, Mr. VARGAS, Mr. VEASEY, Mr. VELA, Ms. VELA´ZQUEZ, Ms. 
WASSERMAN SCHULTZ, Ms. WATERS, Mrs. WATSON COLEMAN, Mr. 
WELCH, Ms. WEXTON, Ms. WILD, Ms. WILSON of Florida, Mr. YAR-
MUTH, Mr. ROSE of New York, Ms. HILL of California, Mr. GREEN of 
Texas, Mr. CUELLAR, Mr. ALLRED, Ms. GABBARD, Mrs. CRAIG, Ms. 
MUCARSEL-POWELL, Mr. SWALWELL of California, Ms. PRESSLEY, Mr. 
DOGGETT, Mr. CRIST, and Ms. HOULAHAN) 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 make 
the child tax credit fully refundable, establish an in-
creased child tax credit for young children, 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. 
This Act may be cited as the ‘‘American Family Act 
of 2019’’. 
SEC. 2. ESTABLISHMENT OF FULLY REFUNDABLE CHILD 
TAX CREDIT. 
(a) ELIMINATION OF EXISTING CHILD TAX CRED-
IT.—Subpart A of part IV of subchapter A of chapter 1 
of subtitle A of the Internal Revenue Code of 1986 is 
amended by striking section 24. 
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(b) ESTABLISHMENT
OF
FULLY
REFUNDABLE 
CHILD TAX CREDIT.—Subpart C of part IV of subchapter 
A of chapter 1 of subtitle A of such Code is amended by 
inserting after section 36B the following new section: 
‘‘SEC. 36C. CHILD TAX CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of— 
‘‘(1) with respect to each qualifying child of the 
taxpayer who has attained 6 years of age before the 
close of such taxable year and for which the tax-
payer is allowed a deduction under section 151, an 
amount equal to $3,000, and 
‘‘(2) with respect to each qualifying child of the 
taxpayer who has not attained 6 years of age before 
the close of such taxable year and for which the tax-
payer is allowed a deduction under section 151, an 
amount equal to 120 percent of the dollar amount 
in paragraph (1). 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowable under subsection (a) shall be reduced (but 
not below zero) by the applicable amount for each 
$1,000 (or fraction thereof) by which the taxpayer’s 
modified adjusted gross income exceeds the thresh-
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old amount. For purposes of the preceding sentence, 
the term ‘modified adjusted gross income’ means ad-
justed gross income increased by any amount ex-
cluded from gross income under section 911, 931, or 
933. 
‘‘(2) THRESHOLD AMOUNT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph 
(1), 
the 
term 
‘threshold 
amount’ 
means— 
‘‘(i) $180,000 in the case of a joint 
return, 
‘‘(ii) $130,000 in the case of an indi-
vidual who is not married, and 
‘‘(iii) $90,000 in the case of a married 
individual filing a separate return. 
‘‘(B) MARITAL STATUS.—For purposes of 
this paragraph, marital status shall be deter-
mined under section 7703. 
‘‘(3) APPLICABLE AMOUNT.—For purposes of 
paragraph (1), the term ‘applicable amount’ means 
an amount equal to the quotient of— 
‘‘(A) the amount of the credit allowable 
under subsection (a), as determined without re-
gard to this subsection, divided by 
‘‘(B) an amount equal to the product of— 
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‘‘(i) $20, multiplied by 
‘‘(ii) the total number of qualifying 
children of the taxpayer. 
‘‘(c) QUALIFYING CHILD.— 
‘‘(1) IN GENERAL.—In this section, the term 
‘qualifying child’ means a qualifying child of the tax-
payer (as defined in section 152(c)) who has not at-
tained 18 years of age. 
‘‘(2) EXCEPTION
FOR
CERTAIN
NON-CITI-
ZENS.—The term ‘qualifying child’ shall not include 
any individual who would not be a dependent if sub-
paragraph (A) of section 152(b)(3) were applied 
without regard to all that follows ‘resident of the 
United States’. 
‘‘(d) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning after 2020, the $3,000 amount in 
subsection (a)(1) shall be increased by an amount 
equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under paragraph (2) for the calendar 
year in which the taxable year begins. 
‘‘(2) COST-OF-LIVING ADJUSTMENT.—For pur-
poses of paragraph (1), the cost-of-living adjustment 
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for any calendar year is the percentage (if any) by 
which— 
‘‘(A) the CPI for the preceding calendar 
year (as determined pursuant to section 
1(f)(4)), exceeds 
‘‘(B) the CPI for calendar year 2019. 
‘‘(3) ROUNDING.—If any increase determined 
under paragraph (1) is not a multiple of $50, such 
increase shall be rounded to the nearest multiple of 
$50. 
‘‘(e) PARTIAL NON-REFUNDABLE CREDIT ALLOWED 
FOR CERTAIN OTHER DEPENDENTS.— 
‘‘(1) IN GENERAL.—In the case of a taxable 
year beginning after December 31, 2019, and before 
January 1, 2026, the aggregate credits allowed to a 
taxpayer under subpart A shall be increased by $500 
for each dependent of the taxpayer (as defined in 
section 152) other than a qualifying child described 
in subsection (c). The amount of the credit allowed 
under this subsection shall not be treated as a credit 
allowed under this subpart. 
‘‘(2) EXCEPTION FOR CERTAIN NONCITIZENS.— 
Paragraph (1) shall not apply with respect to any 
individual who would not be a dependent if subpara-
graph (A) of section 152(b)(3) were applied without 
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regard to all that follows ‘resident of the United 
States’. 
‘‘(3) LIMITATION.— 
‘‘(A) IN
GENERAL.—The amount of the 
credit allowable under paragraph (1) shall be 
reduced (but not below zero) by $50 for each 
$1,000 (or fraction thereof) by which the tax-
payer’s modified adjusted gross income exceeds 
the threshold amount. 
‘‘(B) MODIFIED
ADJUSTED
GROSS
IN-
COME.—For purposes of subparagraph (A), the 
term ‘modified adjusted gross income’ means 
adjusted gross income increased by any amount 
excluded from gross income under section 911, 
931, or 933. 
‘‘(C) THRESHOLD AMOUNT.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), the term ‘threshold 
amount’ means— 
‘‘(I) $200,000 in the case of a 
joint return, 
‘‘(II) $150,000 in the case of an 
individual who is not married, and 
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‘‘(III) $100,000 in the case of a 
married individual filing a separate 
return. 
‘‘(ii) MARITAL
STATUS.—For pur-
poses of this subparagraph, marital status 
shall be determined under section 7703. 
‘‘(f) IDENTIFICATION REQUIREMENTS.— 
‘‘(1) QUALIFYING
CHILD
AND
DEPENDENT 
IDENTIFICATION REQUIREMENT.—No credit shall be 
allowed under this section to a taxpayer with respect 
to any qualifying child or dependent unless the tax-
payer includes the name and taxpayer identification 
number of such qualifying child or dependent on the 
return of tax for the taxable year and such taxpayer 
identification number was issued on or before the 
due date for filing such return. 
‘‘(2) TAXPAYER
IDENTIFICATION
REQUIRE-
MENT.—No credit shall be allowed under this section 
if the taxpayer identification number of the taxpayer 
was issued after the due date for filing the return 
for the taxable year. 
‘‘(g) TAXABLE YEAR MUST BE FULL TAXABLE 
YEAR.—Except in the case of a taxable year closed by rea-
son of the death of the taxpayer, no credit shall be allow-
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able under this section in the case of a taxable year cov-
ering a period of less than 12 months. 
‘‘(h) RESTRICTIONS ON TAXPAYERS WHO IMPROP-
ERLY CLAIMED CREDIT IN PRIOR YEAR.— 
‘‘(1) TAXPAYERS MAKING PRIOR FRAUDULENT 
OR RECKLESS CLAIMS.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under this section for any taxable year in 
the disallowance period. 
‘‘(B) DISALLOWANCE
PERIOD.—For pur-
poses of subparagraph (A), the disallowance pe-
riod is— 
‘‘(i) 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 credit under this 
section was due to fraud, and 
‘‘(ii) 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 credit under this 
section was due to reckless or intentional 
disregard of rules and regulations (but not 
due to fraud). 
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‘‘(2) TAXPAYERS
MAKING
IMPROPER
PRIOR 
CLAIMS.—In the case of a taxpayer who is denied 
credit under this section for any taxable year as a 
result of the deficiency procedures under subchapter 
B of chapter 63, no credit shall be allowed under 
this section for any subsequent taxable year unless 
the taxpayer provides such information as the Sec-
retary may require to demonstrate eligibility for 
such credit. 
‘‘(i) 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 
year shall be increased by the amount of such ex-
cess’’. 
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(c) ADVANCE PAYMENT OF CREDIT.—Chapter 77 of 
the Internal Revenue Code of 1986 is amended by insert-
ing after section 7527 the following new section: 
‘‘SEC. 7527A. ADVANCE PAYMENT OF CHILD TAX CREDIT. 
‘‘(a) IN GENERAL.—As soon as practicable and not 
later than 1 year after the date of the enactment of this 
section, the Secretary shall establish a program for mak-
ing advance payments of the credit allowed under sub-
section (a) of section 36C on a monthly basis (determined 
without regard to subsection (i)(1) of such section), or as 
frequently as the Secretary determines to be administra-
tively feasible, to taxpayers allowed such credit. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The Secretary may make 
payments under subsection (a) only to the extent 
that the total amount of such payments made to any 
taxpayer during the taxable year does not exceed an 
amount equal to the excess, if any, of— 
‘‘(A) subject to paragraph (2), the amount 
determined under subsection (a) of section 36C 
with respect to such taxpayer (determined with-
out regard to subsection (i) of such section) for 
such taxable year, over 
‘‘(B) the estimated tax imposed by subtitle 
A, as reduced by the credits allowable under 
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subparts A and C (with the exception of section 
36C) of such part IV, with respect to such tax-
payer for such taxable year, as determined in 
such manner as the Secretary deems appro-
priate. 
‘‘(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.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 of subtitle A of the 
Internal Revenue Code of 1986 is amended by strik-
ing the item relating to section 24. 
(2) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of subtitle A of 
such Code is amended by inserting after the item re-
lating to section 36B the following: 
‘‘Sec. 36C. Child tax credit.’’. 
(3) 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 child tax credit.’’. 
(4) Subparagraph (B) of section 45R(f)(3) of 
such Code is amended to read as follows: 
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(9) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting 
‘‘36C(a),’’ after ‘‘36B,’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 3. PAYMENTS TO POSSESSIONS. 
(a) MIRROR CODE POSSESSION.—The Secretary of 
the Treasury shall pay to each possession of the United 
States with a mirror code tax system amounts equal to 
the loss to that possession by reason of the application 
of section 36C of the Internal Revenue Code of 1986 (as 
added by section 2) with respect to taxable years begin-
ning after 2019. Such amounts shall be determined by the 
Secretary of the Treasury based on information provided 
by the government of the respective possession. 
(b) OTHER POSSESSIONS.—The Secretary of the 
Treasury shall pay to each possession of the United States 
which does not have a mirror code tax system amounts 
estimated by the Secretary of the Treasury as being equal 
to the aggregate benefits that would have been provided 
to residents of such possession by reason of the application 
of section 36C of such Code (as so added) for taxable 
years beginning after 2019 if a mirror code tax system 
had been in effect in such possession. The preceding sen-
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tence shall not apply with respect to any possession of the 
United States unless such possession has a plan, which 
has been approved by the Secretary of the Treasury, under 
which such possession will promptly distribute such pay-
ments to the residents of such possession. 
(c) 
COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No credit 
shall be allowed against United States income taxes for 
any taxable year under section 36C of the Internal Rev-
enue Code of 1986 (as so added) to any person— 
(1) to whom a credit is allowed against taxes 
imposed by the possession by reason of the amend-
ments made by this section for such taxable year, or 
(2) who is eligible for a payment under a plan 
described in subsection (b) with respect to such tax-
able year. 
(d) DEFINITIONS AND SPECIAL RULES.— 
(1) POSSESSION OF THE UNITED STATES.—For 
purposes of this section, the term ‘‘possession of the 
United States’’ includes the Commonwealth of Puer-
to Rico and the Commonwealth of the Northern 
Mariana Islands. 
(2) MIRROR CODE TAX SYSTEM.—For purposes 
of this section, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
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States, the income tax system of such possession if 
the income tax liability of the residents of such pos-
session under such system is determined by ref-
erence to the income tax laws of the United States 
as if such possession were the United States. 
(3) TREATMENT OF PAYMENTS.—For purposes 
of section 1324(b)(2) of title 31, United States 
Code, the payments under this section shall be treat-
ed in the same manner as a refund due from the 
credit allowed under section 36C of the Internal 
Revenue Code of 1986. 
Æ 
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