H. R. 1319—141 
inserting after the item relating to section 6428A the fol-
lowing new item: 
‘‘Sec. 6428B. 2021 recovery rebates to individuals.’’. 
(d) APPROPRIATIONS.—Immediately upon the enactment of this 
Act, in addition to amounts otherwise available, there are appro-
priated for fiscal year 2021, out of any money in the Treasury 
not otherwise appropriated: 
(1) $1,464,500,000 to remain available until September 30, 
2023 for necessary expenses for the Internal Revenue Service 
for the administration of the advance payments, the provision 
of taxpayer assistance, and the furtherance of integrated, mod-
ernized, and secure Internal Revenue Service systems, of which 
up to $20,000,000 is available for premium pay for services 
related to the development of information technology as deter-
mined by the Commissioner of the Internal Revenue occurring 
between January 1, 2020 and December 31, 2022, and all 
of which shall supplement and not supplant any other appro-
priations that may be available for this purpose. 
(2) $7,000,000 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 supplant any 
other appropriations that may be available for this purpose, 
and 
(3) $8,000,000 to remain available until September 30, 
2023, for the Treasury Inspector General for Tax Administra-
tion for the purposes of overseeing activities related to the 
administration of this section (and the amendments made by 
this section), which shall supplement and not supplant any 
other appropriations that may be available for this purpose. 
PART 2—CHILD TAX CREDIT 
SEC. 9611. CHILD TAX CREDIT IMPROVEMENTS FOR 2021. 
(a) IN GENERAL.—Section 24 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new sub-
section: 
‘‘(i) SPECIAL RULES FOR 2021.—In the case of any taxable year 
beginning after December 31, 2020, and before January 1, 2022— 
‘‘(1) REFUNDABLE
CREDIT.—If the taxpayer (in the case 
of a joint return, either spouse) has a principal place of abode 
in the United States (determined as provided in section 32) 
for more than one-half of the taxable year or is a bona fide 
resident of Puerto Rico (within the meaning of section 937(a)) 
for such taxable year— 
‘‘(A) subsection (d) shall not apply, and 
‘‘(B) so much of the credit determined under subsection 
(a) (after application of subparagraph (A)) as does not 
exceed the amount of such credit which would be so deter-
mined without regard to subsection (h)(4) shall be allowed 
under subpart C (and not allowed under this subpart). 
‘‘(2) 17-YEAR-OLDS ELIGIBLE FOR TREATMENT AS QUALIFYING 
CHILDREN.—This section shall be applied— 
‘‘(A) by substituting ‘age 18’ for ‘age 17’ in subsection 
(c)(1), and
H. R. 1319—142 
‘‘(B) by substituting ‘described in subsection (c) (deter-
mined after the application of subsection (i)(2)(A))’ for 
‘described in subsection (c)’ in subsection (h)(4)(A). 
‘‘(3) CREDIT
AMOUNT.—Subsection (h)(2) shall not apply 
and subsection (a) shall be applied by substituting ‘$3,000 
($3,600 in the case of a qualifying child who has not attained 
age 6 as of the close of the calendar year in which the taxable 
year of the taxpayer begins)’ for ‘$1,000’. 
‘‘(4) REDUCTION OF INCREASED CREDIT AMOUNT BASED ON 
MODIFIED ADJUSTED GROSS INCOME.— 
‘‘(A) IN GENERAL.—The amount of the credit allowable 
under subsection (a) (determined without regard to sub-
section (b)) shall be reduced by $50 for each $1,000 (or 
fraction thereof) by which the taxpayer’s modified adjusted 
gross income (as defined in subsection (b)) exceeds the 
applicable threshold amount. 
‘‘(B) APPLICABLE THRESHOLD AMOUNT.—For purposes 
of this paragraph, the term ‘applicable threshold amount’ 
means— 
‘‘(i) $150,000, in the case of a joint return or sur-
viving spouse (as defined in section 2(a)) , 
‘‘(ii) $112,500, in the case of a head of household 
(as defined in section 2(b)), and 
‘‘(iii) $75,000, in any other case. 
‘‘(C) LIMITATION ON REDUCTION.— 
‘‘(i) IN
GENERAL.—The amount of the reduction 
under subparagraph (A) shall not exceed the lesser 
of— 
‘‘(I) the applicable credit increase amount, or 
‘‘(II) 5 percent of the applicable phaseout 
threshold range. 
‘‘(ii) APPLICABLE CREDIT INCREASE AMOUNT.—For 
purposes of this subparagraph, the term ‘applicable 
credit increase amount’ means the excess (if any) of— 
‘‘(I) the amount of the credit allowable under 
this section for the taxable year determined with-
out regard to this paragraph and subsection (b), 
over 
‘‘(II) the amount of such credit as so deter-
mined and without regard to paragraph (3). 
‘‘(iii) APPLICABLE PHASEOUT THRESHOLD RANGE.— 
For purposes of this subparagraph, the term ‘applicable 
phaseout threshold range’ means the excess of— 
‘‘(I) the threshold amount applicable to the 
taxpayer under subsection (b) (determined after 
the application of subsection (h)(3)), over 
‘‘(II) 
the 
applicable 
threshold 
amount 
applicable to the taxpayer under this paragraph. 
‘‘(D) COORDINATION
WITH
LIMITATION
ON
OVERALL 
CREDIT.—Subsection (b) shall be applied by substituting 
‘the credit allowable under subsection (a) (determined after 
the application of subsection (i)(4)(A)’ for ‘the credit allow-
able under subsection (a)’.’’. 
(b) ADVANCE PAYMENT OF CREDIT.— 
(1) IN GENERAL.—Chapter 77 of such Code is amended 
by inserting after section 7527 the following new section:
H. R. 1319—143 
‘‘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 deter-
mined 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 provided in this 
subsection, the term ‘annual advance amount’ means, with 
respect to any taxpayer for any calendar year, the amount 
(if any) which is estimated 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 chapter 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 taxpayer described 
in section 24(i)(1) is determined with respect to the ref-
erence taxable year, 
‘‘(B) the taxpayer’s modified adjusted gross income for 
such taxable year is equal to 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 properly claimed on the tax-
payer’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 reference 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 beginning 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— 
‘‘(i) a return of tax filed by such taxpayer 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 tax-
payer to the Secretary which allows the Secretary to 
determine payments under subsection (a) which, in 
the aggregate during any taxable year of the taxpayer, 
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 taxpayer. 
‘‘(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 Sec-
retary may adjust the amount of any periodic payment
H. R. 1319—144 
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 such payment would have been on the basis 
of the annual advance amount as so modified. 
‘‘(4) DETERMINATION OF STATUS.—If information 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 paragraph 
(1)(A), determine such status based on information 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 Secretary shall estab-
lish an on-line portal which allows taxpayers 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— 
‘‘(A) a change in the number of the taxpayer’s quali-
fying 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 January 31 of the 
calendar year following any calendar year during which the Sec-
retary makes one or more payments to any taxpayer under this 
section, the Secretary shall provide 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 informa-
tion as the Secretary determines appropriate. 
‘‘(e) ADMINISTRATIVE PROVISIONS.— 
‘‘(1) APPLICATION OF ELECTRONIC FUNDS PAYMENT REQUIRE-
MENT.—The payments made by the Secretary under subsection 
(a) shall be made by electronic funds transfer to the same 
extent and in 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 OFFSET.—Any payment 
made to any individual under this section shall not be— 
‘‘(A) subject to reduction or offset pursuant to sub-
section (c), (d), (e), or (f) of section 6402 or any similar 
authority permitting offset, 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 POSSES-
SIONS OF THE UNITED STATES.— 
‘‘(A) IN
GENERAL.—The advance payment amount 
determined under this section shall be determined—
H. R. 1319—145 
‘‘(i) by applying section 24(i)(1) without regard to 
the phrase ‘or is a bona fide resident of Puerto Rico 
(within the meaning of section 937(a))’, and 
‘‘(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
ADVANCE
PAY-
MENTS.— 
‘‘(i) MIRROR
CODE
POSSESSIONS.—In the case of 
any possession described in subparagraph (B) which 
makes the election 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 advance 
payments consistent with such election. 
‘‘(ii) AMERICAN
SAMOA.—The amount otherwise 
paid by the Secretary to American 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 subparagraph 
(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) imme-
diately upon approval of the plan referred to in such 
clause, respectively. 
‘‘(f) APPLICATION.—No payments shall be made under the pro-
gram 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 necessary or appro-
priate to carry out the purposes of this section and subsections 
(i)(1) and (j) of section 24, including 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.—Sec-
tion 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 pay-
ments made under section 7527A to such taxpayer during such
H. R. 1319—147 
(A) Section 26(b)(2) of such Code is amended by striking 
‘‘and’’ at the end of subparagraph (X), by striking the 
period at the end of subparagraph (Y) and inserting ‘‘, 
and’’, and by adding at the end the following new subpara-
graph: 
‘‘(Z) section 24(j)(2) (relating to excess advance pay-
ments).’’. 
(B) Section 6211(b)(4)(A) of such Code, as amended 
by the preceding provisions of this subtitle, is amended— 
(i) by striking ‘‘24(d)’’ and inserting ‘‘24 by reason 
of subsections (d) and (i)(1) thereof’’, and 
(ii) by striking ‘‘and 6428B’’ and inserting ‘‘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 inserting ‘‘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 
appropriated: 
(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 section), 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 amend-
ments made by this section), which shall supplement and 
not supplant any other appropriations that may be avail-
able 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 described 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 Secretary shall 
ensure that the timing of the establishment of such program 
does not interfere with carrying out section 6428B(g) as rapidly 
as possible. 
SEC. 9612. APPLICATION OF CHILD TAX CREDIT IN POSSESSIONS. 
(a) IN GENERAL.—Section 24 of the Internal Revenue Code 
of 1986, as amended by the preceding provisions of this Act, is 
amended by adding at the end the following new subsection: 
‘‘(k) APPLICATION OF CREDIT IN POSSESSIONS.—
H. R. 1319—148 
‘‘(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 
without regard to this subsection) with respect to taxable 
years beginning after 2020. Such amounts shall be deter-
mined by the Secretary based on information provided by 
the government of the respective possession. 
‘‘(B) COORDINATION
WITH
CREDIT
ALLOWED
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 imposed by 
a possession of the United States with a mirror code tax 
system by reason of the application 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 liability 
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 subsection (i)(1). 
‘‘(ii) For nonapplication of advance payment to resi-
dents of Puerto Rico, see section 7527A(e)(4)(A). 
‘‘(B) APPLICATION TO TAXABLE YEARS AFTER 2021.—In 
the case of any bona fide resident of Puerto Rico (within 
the meaning of section 937(a)) for any taxable year begin-
ning after December 31, 2021— 
‘‘(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 residents of American Samoa by reason of the application 
of this section for taxable years beginning 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.—Subparagraph (A) 
shall not apply unless American Samoa has a plan, which 
has been approved by the Secretary, under which American 
Samoa will promptly distribute such payments to its resi-
dents. 
‘‘(C) COORDINATION
WITH
CREDIT
ALLOWED
AGAINST 
UNITED STATES INCOME TAXES.—
H. R. 1319—149 
‘‘(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 sub-
section) 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, sub-
section (i)(1) shall be applied by substituting ‘bona 
fide resident 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 similar to the rules of 
paragraph (2)(B) shall apply with respect to bona 
fide residents of American Samoa (within the 
meaning of section 937(a)). 
‘‘(4) TREATMENT
OF
PAYMENTS.—For purposes 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 QUALIFYING CHILDREN. 
(a) SPECIAL RULES FOR 2021.—Section 32 of the Internal Rev-
enue 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 CREDIT.— 
‘‘(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 subpara-
graph, 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 para-
graph, the term ‘specified student’ means, with respect 
to any taxable year, an individual 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—
H. R. 1319—150 
‘‘(i) on or after the date that such individual 
attained age 14, was in foster care provided under 
the supervision or administration of an entity admin-
istering (or eligible to administer) a plan under part 
B or part E of title IV of the Social Security Act 
(without regard to whether Federal assistance was pro-
vided 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 information 
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 taxable year, an individual who certifies, 
in a manner as provided by the Secretary, that such indi-
vidual is either an unaccompanied youth who is a homeless 
child or youth, or is unaccompanied, at risk of homeless-
ness, and self-supporting. 
‘‘(2) ELIMINATION
OF
MAXIMUM
AGE
FOR
CREDIT.—Sub-
section (c)(1)(A)(ii)(II) shall be applied without regard to the 
phrase ‘but not attained age 65’. 
‘‘(3) INCREASE IN CREDIT AND PHASEOUT PERCENTAGES.— 
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
ADJUSTMENT.— 
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 Secretary’s delegate) shall 
develop and implement procedures to use information returns under 
section 6050S (relating to returns relating to higher education tui-
tion and related expenses) to check the status of individuals as 
specified students for purposes of section 32(n)(1)(B)(ii) of the 
Internal 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 subparagraph (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 SEPARATED 
SPOUSES. 
(a) IN GENERAL.—Section 32(d) of the Internal Revenue Code 
of 1986 is amended—
H. R. 1319—151 
(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: 
‘‘(2) DETERMINATION OF MARITAL STATUS.—For purposes of 
this section— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), marital status shall be determined under section 
7703(a). 
‘‘(B) SPECIAL RULE FOR SEPARATED SPOUSE.—An indi-
vidual 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 respect to the individual’s spouse and 
is not a member of the same household with the 
individual’s spouse by the end of the taxable year.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 32(c)(1)(A) of such Code is amended by striking 
the last sentence. 
(2) Section 32(c)(1)(E)(ii) of such Code is amended by 
striking ‘‘(within the meaning of section 7703)’’. 
(3) Section 32(d)(1) of such Code, as amended by subsection 
(a), is amended by striking ‘‘(within the meaning of section 
7703)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2020. 
SEC. 9624. MODIFICATION OF DISQUALIFIED INVESTMENT INCOME 
TEST. 
(a) IN GENERAL.—Section 32(i) of the Internal Revenue Code 
of 1986 is amended by striking ‘‘$2,200’’ and inserting ‘‘$10,000’’. 
(b) INFLATION ADJUSTMENT.—Section 32(j)(1) of such Code is 
amended— 
(1) in the matter preceding subparagraph (A), by inserting 
‘‘(2021 in the case of the dollar amount in subsection (i)(1))’’ 
after ‘‘2015’’, 
(2) in subparagraph (B)(i)— 
(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 subparagraph (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 sub-
section (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.
H. R. 1319—153 
the dollar amount determined under clause (i) 
increased by an amount equal to— 
‘‘(I) such dollar amount, multiplied by— 
‘‘(II) the cost-of-living adjustment determined 
under section 1(f)(3) for such calendar year, deter-
mined by substituting ‘calendar year 2020’ for ‘cal-
endar 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 Secretary shall make 
payments under paragraph (1) for any calendar year— 
‘‘(i) after receipt of such information as the Sec-
retary may require to determine such payments, and 
‘‘(ii) except as provided in clause (i), within a 
reasonable period of time before the due date for indi-
vidual income tax returns (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 subsection. 
‘‘(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 determined 
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 SYSTEMS.— 
‘‘(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, Guam, and the Commonwealth of the Northern 
Mariana Islands equal to— 
‘‘(A) the cost to such possession of the earned income 
tax credit for taxable years beginning in or with such 
calendar year, plus 
‘‘(B) in the case of calendar years 2021 through 2025, 
the lesser of— 
‘‘(i) the expenditures made by such possession 
during such calendar year for education efforts with 
respect to individual taxpayers and tax return pre-
parers relating to such earned income tax credit, or 
‘‘(ii) $50,000. 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules similar to the 
rules of subparagraphs (A), (B), and (C) of subsection (a)(4) 
shall apply for purposes of this subsection. 
‘‘(c) AMERICAN SAMOA.— 
‘‘(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 Amer-
ican Samoa equal to— 
‘‘(A) the lesser of—
H. R. 1319—154 
‘‘(i) the cost to American Samoa of the earned 
income tax credit for taxable years beginning in or 
with such calendar year, or 
‘‘(ii) $16,000,000, plus 
‘‘(B) in the case of calendar years 2021 through 2025, 
the lesser of— 
‘‘(i) the expenditures made by American Samoa 
during such calendar year for education efforts with 
respect to individual taxpayers and tax return pre-
parers relating to such earned income tax credit, or 
‘‘(ii) $50,000. 
‘‘(2) REQUIREMENT
TO
ENACT
AND
MAINTAIN
AN
EARNED 
INCOME TAX CREDIT.—The Secretary shall not make any pay-
ments under paragraph (1) with respect to any calendar year 
unless American Samoa has in effect an earned income tax 
credit for taxable years beginning in or with such calendar 
year which allows a refundable tax credit to individuals on 
the basis of the taxpayer’s earned income which is designed 
to substantially increase workforce participation. 
‘‘(3) INFLATION ADJUSTMENT.—In the case of any calendar 
year after 2021, the $16,000,000 amount in paragraph (1)(A)(ii) 
shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by— 
‘‘(B) the cost-of-living adjustment determined under 
section 1(f)(3) for such calendar year, determined by sub-
stituting ‘calendar year 2020’ for ‘calendar year 2016’ in 
subparagraph (A)(ii) thereof. 
Any increase determined under this clause shall be rounded 
to the nearest multiple of $100,000. 
‘‘(4) APPLICATION OF CERTAIN RULES.—Rules similar to the 
rules of subparagraphs (A), (B), and (C) of subsection (a)(4) 
shall apply for purposes of this subsection. 
‘‘(d) TREATMENT OF PAYMENTS.—For purposes of section 1324 
of title 31, United States Code, the payments under this section 
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) CLERICAL AMENDMENT.—The table of sections for chapter 
77 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following new item: 
‘‘Sec. 7530. Application of earned income tax credit to possessions of the United 
States.’’. 
SEC. 9626. TEMPORARY SPECIAL RULE FOR DETERMINING EARNED 
INCOME FOR PURPOSES OF EARNED INCOME TAX 
CREDIT. 
(a) IN GENERAL.—If the earned income of the taxpayer for 
the taxpayer’s first taxable year beginning in 2021 is less than 
the earned income of the taxpayer for the taxpayer’s first taxable 
year beginning in 2019, the credit allowed under section 32 of 
the Internal Revenue Code of 1986 may, at the election of the 
taxpayer, be determined by substituting— 
(1) such earned income for the taxpayer’s first taxable 
year beginning in 2019, for 
(2) such earned income for the taxpayer’s first taxable 
year beginning in 2021. 
(b) EARNED INCOME.—
H. R. 1319—155 
(1) IN GENERAL.—For purposes of this section, the term 
‘‘earned income’’ has the meaning given such term under section 
32(c) of the Internal Revenue Code of 1986. 
(2) APPLICATION TO JOINT RETURNS.—For purposes of sub-
section (a), in the case of a joint return, the earned income 
of the taxpayer for the first taxable year beginning in 2019 
shall be the sum of the earned income of each spouse for 
such taxable year. 
(c) SPECIAL RULES.— 
(1) ERRORS TREATED AS MATHEMATICAL ERRORS.—For pur-
poses of section 6213 of the Internal Revenue Code of 1986, 
an incorrect use on a return of earned income pursuant to 
subsection (a) shall be treated as a mathematical or clerical 
error. 
(2) NO EFFECT ON DETERMINATION OF GROSS INCOME, ETC.— 
Except as otherwise provided in this subsection, the Internal 
Revenue Code of 1986 shall be applied without regard to any 
substitution under subsection (a). 
(d) TREATMENT OF CERTAIN POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR CODE TAX SYS-
TEMS.—The Secretary of the Treasury shall pay to each posses-
sion of the United States which has a mirror code tax system 
amounts equal to the loss (if any) to that possession by reason 
of the application of the provisions of this section (other than 
this subsection) with respect to section 32 of the Internal Rev-
enue Code of 1986. Such amounts shall be determined by 
the Secretary of the Treasury based on information provided 
by the government of the respective possession. 
(2) PAYMENTS TO 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 esti-
mated by the Secretary of the Treasury as being equal to 
the aggregate benefits (if any) that would have been provided 
to residents of such possession by reason of the provisions 
of this section (other than this subsection) with respect to 
section 32 of the Internal Revenue Code of 1986 if a mirror 
code tax system had been in effect in such possession. The 
preceding sentence shall not apply unless the respective posses-
sion has a plan, which has been approved by the Secretary 
of the Treasury, under which such possession will promptly 
distribute such payments to its residents. 
(3) MIRROR CODE TAX SYSTEM.—For purposes of this section, 
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 liability of the residents 
of such possession 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. 
(4) TREATMENT OF PAYMENTS.—For purposes of section 1324 
of title 31, United States Code, the payments under this section 
shall be treated in the same manner as a refund due from 
a credit provision referred to in subsection (b)(2) of such section.
H. R. 1319—156 
PART 4—DEPENDENT CARE ASSISTANCE 
SEC. 9631. REFUNDABILITY AND ENHANCEMENT OF CHILD AND 
DEPENDENT CARE TAX CREDIT. 
(a) IN GENERAL.—Section 21 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new sub-
section: 
‘‘(g) SPECIAL RULES
FOR 2021.—In the case of any taxable 
year beginning after December 31, 2020, and before January 1, 
2022— 
‘‘(1) CREDIT MADE REFUNDABLE.—If the taxpayer (in the 
case of a joint return, either spouse) has a principal place 
of abode in the United States (determined as provided in section 
32) for more than one-half of the taxable year, the credit allowed 
under subsection (a) shall be treated as a credit allowed under 
subpart C (and not allowed under this subpart). 
‘‘(2) INCREASE IN DOLLAR LIMIT ON AMOUNT CREDITABLE.— 
Subsection (c) shall be applied— 
‘‘(A) by substituting ‘$8,000’ for ‘$3,000’ in paragraph 
(1) thereof, and 
‘‘(B) by substituting ‘$16,000’ for ‘$6,000’ in paragraph 
(2) thereof. 
‘‘(3) INCREASE
IN
APPLICABLE
PERCENTAGE.—Subsection 
(a)(2) shall be applied— 
‘‘(A) by substituting ‘50 percent’ for ‘35 percent’, and 
‘‘(B) by substituting ‘$125,000’ for ‘$15,000’. 
‘‘(4) APPLICATION OF PHASEOUT TO HIGH INCOME INDIVID-
UALS.— 
‘‘(A) IN GENERAL.—Subsection (a)(2) shall be applied 
by substituting ‘the phaseout percentage’ for ‘20 percent’. 
‘‘(B) PHASEOUT
PERCENTAGE.—The term ‘phaseout 
percentage’ means 20 percent reduced (but not below zero) 
by 1 percentage point for each $2,000 (or fraction thereof) 
by which the taxpayer’s adjusted gross income for the tax-
able year exceeds $400,000.’’. 
(b) APPLICATION
OF CREDIT
IN POSSESSIONS.—Section 21 of 
such Code, as amended by subsection (a), is amended by adding 
at the end the following new subsection: 
‘‘(h) APPLICATION OF CREDIT IN POSSESSIONS.— 
‘‘(1) PAYMENT TO POSSESSIONS WITH MIRROR CODE TAX SYS-
TEMS.—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 without regard to this subsection) 
with respect to taxable years beginning in or with 2021. Such 
amounts shall be determined by the Secretary based on 
information provided by the government of the respective 
possession. 
‘‘(2) PAYMENTS
TO
OTHER
POSSESSIONS.—The Secretary 
shall pay to each possession of the United States which does 
not have a mirror code tax system amounts estimated by the 
Secretary as being equal to the aggregate benefits that would 
have been provided to residents of such possession by reason 
of this section with respect to taxable years beginning in or 
with 2021 if a mirror code tax system had been in effect 
in such possession. The preceding sentence shall not apply 
unless the respective possession has a plan, which has been