HR 1 PCS 
(13) Section 512(d)(2)(B) is amended by strik-
ing ‘‘section 1(f)(3) for the calendar year in which 
the taxable year begins, by substituting ‘calendar 
year 1994’ for ‘calendar year 1992’ in subparagraph 
(B) thereof’’and inserting ‘‘section 1(c)(2)(A) for the 
calendar year in which the taxable year begins, de-
termined by substituting ‘calendar year 1994’ for 
‘calendar year 2016’ in clause (ii) thereof’’. 
(14) Section 513(h)(2)(C)(ii) is amended by 
striking ‘‘section 1(f)(3) for the calendar year in 
which the taxable year begins by substituting ‘cal-
endar year 1987’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof’’ and inserting ‘‘section 
1(c)(2)(A) for the calendar year in which the taxable 
year begins, determined by substituting ‘calendar 
year 1987’ for ‘calendar year 2016’ in clause (ii) 
thereof’’. 
(15) Section 831(b)(2)(D)(ii) is amended by 
striking ‘‘section 1(f)(3) for such calendar year by 
substituting ‘calendar year 2013’ for ‘calendar year 
1992’ in subparagraph (B) thereof’’ and inserting 
‘‘section 1(c)(2)(A) for such calendar year by sub-
stituting ‘calendar year 2013’ for ‘calendar year 
2016’ in clause (ii) thereof’’. 
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(16) Section 877A(a)(3)(B)(i)(II) is amended 
by striking ‘‘section 1(f)(3) for the calendar year in 
which the taxable year begins, by substituting ‘cal-
endar year 2007’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof’’ and inserting ‘‘section 
1(c)(2)(A) for the calendar year in which the taxable 
year begins, determined by substituting ‘calendar 
year 2007’ for ‘calendar year 2016’ in clause (ii) 
thereof’’. 
(17) Section 911(b)(2)(D)(ii)(II) is amended by 
striking ‘‘section 1(f)(3) for the calendar year in 
which the taxable year begins, determined by sub-
stituting ‘2004’ for ‘1992’ in subparagraph (B) 
thereof’’ and inserting ‘‘section 1(c)(2)(A) for the 
calendar year in which the taxable year begins, de-
termined by substituting ‘calendar year 2004’ for 
‘calendar year 2016’ in clause (ii) thereof’’. 
(18) Section 1274A(d)(2) is amended to read 
as follows: 
‘‘(2) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
debt instrument arising out of a sale or ex-
change during any calendar year after 2018, 
each adjusted dollar amount shall be increased 
by an amount equal to— 
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‘‘(i) such adjusted dollar amount, 
multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(c)(2)(A) for such 
calendar year, determined by substituting 
‘calendar year 2017’ for ‘calendar year 
2016’ in clause (ii) thereof. 
‘‘(B) ADJUSTED DOLLAR AMOUNTS.—For 
purposes of this paragraph, the term ‘adjusted 
dollar amount’ means the dollar amounts in 
subsections (b) and (c), in each case as in effect 
for calendar year 2018. 
‘‘(C) ROUNDING.—Any increase under sub-
paragraph (A) shall be rounded to the nearest 
multiple of $100.’’. 
(19) Section 2010(c)(3)(B)(ii) is amended by 
striking ‘‘section 1(f)(3) for such calendar year by 
substituting ‘calendar year 2010’ for ‘calendar year 
1992’ in subparagraph (B) thereof’’ and inserting 
‘‘section 1(c)(2)(A) for such calendar year, deter-
mined by substituting ‘calendar year 2010’ for ‘cal-
endar year 2016’ in clause (ii) thereof’’. 
(20) Section 2032A(a)(3)(B) is amended by 
striking ‘‘section 1(f)(3) for such calendar year by 
substituting ‘calendar year 1997’ for ‘calendar year 
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1992’ in subparagraph (B) thereof’’ and inserting 
‘‘section 1(c)(2)(A) for such calendar year, deter-
mined by substituting ‘calendar year 1997’ for ‘cal-
endar year 2016’ in clause (ii) thereof’’. 
(21) Section 2503(b)(2)(B) is amended by 
striking ‘‘section 1(f)(3) for such calendar year by 
substituting ‘calendar year 1997’ for ‘calendar year 
1992’ in subparagraph (B) thereof’’ and inserting 
‘‘section 1(c)(2)(A) for the calendar year, deter-
mined by substituting ‘calendar year 1997’ for ‘cal-
endar year 2016’ in clause (ii) thereof’’. 
(22) Section 4161(b)(2)(C)(i)(II) is amended by 
striking ‘‘section 1(f)(3) for such calendar year, de-
termined by substituting ‘2004’ for ‘1992’ in sub-
paragraph (B) thereof’’ and inserting ‘‘section 
1(c)(2)(A) for such calendar year, determined by 
substituting ‘calendar year 2004’ for ‘calendar year 
2016’ in clause (ii) thereof’’. 
(23) Section 4261(e)(4)(A)(ii) is amended by 
striking ‘‘section 1(f)(3) for such calendar year by 
substituting the year before the last nonindexed year 
for ‘calendar year 1992’ in subparagraph (B) there-
of’’ and inserting ‘‘section 1(c)(2)(A) for such cal-
endar year, determined by substituting the year be-
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fore the last nonindexed year for ‘calendar year 
2016’ in clause (ii) thereof’’. 
(24) Section 4980I(b)(3)(C)(v)(II) is amend-
ed— 
(A) by striking ‘‘section 1(f)(3)’’ and in-
serting ‘‘section 1(c)(2)(A)’’, 
(B) by striking ‘‘subparagraph (B)’’ and 
inserting ‘‘clause (ii)’’, and 
(C) by striking ‘‘1992’’ and inserting 
‘‘2016’’. 
(25) Section 5000A(c)(3)(D)(ii) is amended— 
(A) by striking ‘‘section 1(f)(3)’’ and in-
serting ‘‘section 1(c)(2)(A)’’, 
(B) by striking ‘‘subparagraph (B)’’ and 
inserting ‘‘clause (ii)’’, and 
(C) by striking ‘‘1992’’ and inserting 
‘‘2016’’. 
(26) Section 6039F(d) is amended by striking 
‘‘section 1(f)(3), except that subparagraph (B) 
thereof’’ and inserting ‘‘section 1(c)(2)(A), except 
that clause (ii) thereof’’. 
(27) Section 6323(i)(4)(B) is amended by strik-
ing ‘‘section 1(f)(3) for the calendar year, deter-
mined by substituting ‘calendar year 1996’ for ‘cal-
endar year 1992’ in subparagraph (B) thereof’’ and 
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inserting ‘‘section 1(c)(2)(A) for the calendar year, 
determined by substituting ‘calendar year 1996’ for 
‘calendar year 2016’ in clause (ii) thereof’’. 
(28) Section 6334(g)(1)(B) is amended by 
striking ‘‘section 1(f)(3) for such calendar year, by 
substituting ‘calendar year 1998’ for ‘calendar year 
1992’ in subparagraph (B) thereof’’ and inserting 
‘‘section 1(c)(2)(A) for such calendar year, deter-
mined by substituting ‘calendar year 1999’ for ‘cal-
endar year 2016’ in clause (ii) thereof’’. 
(29) Section 6601(j)(3)(B) is amended by strik-
ing ‘‘section 1(f)(3) for such calendar year by sub-
stituting ‘calendar year 1997’ for ‘calendar year 
1992’ in subparagraph (B) thereof’’ and inserting 
‘‘section 1(c)(2)(A) for such calendar year by sub-
stituting ‘calendar year 1997’ for ‘calendar year 
2016’ in clause (ii) thereof’’. 
(30) Section 6651(i)(1) is amended by striking 
‘‘section 1(f)(3) determined by substituting ‘calendar 
year 2013’ for ‘calendar year 1992’ in subparagraph 
(B) thereof’’ and inserting ‘‘section 1(c)(2)(A) deter-
mined by substituting ‘calendar year 2013’ for ‘cal-
endar year 2016’ in clause (ii) thereof’’. 
(31) Section 6721(f)(1) is amended— 
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(A) by striking ‘‘section 1(f)(3)’’ and in-
serting ‘‘section 1(c)(2)(A)’’, 
(B) by striking ‘‘subparagraph (B)’’ and 
inserting ‘‘clause (ii)’’, and 
(C) by striking ‘‘1992’’ and inserting 
‘‘2016’’. 
(32) Section 6722(f)(1) is amended— 
(A) by striking ‘‘section 1(f)(3)’’ and in-
serting ‘‘section 1(c)(2)(A)’’, 
(B) by striking ‘‘subparagraph (B)’’ and 
inserting ‘‘clause (ii)’’, and 
(C) by striking ‘‘1992’’ and inserting 
‘‘2016’’. 
(33) Section 6652(c)(7)(A) is amended by strik-
ing ‘‘section 1(f)(3) determined by substituting ‘cal-
endar year 2013’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof’’ and inserting ‘‘section 
1(c)(2)(A) determined by substituting ‘calendar year 
2013’ for ‘calendar year 2016’ in clause (ii) there-
of’’. 
(34) Section 6695(h)(1) is amended by striking 
‘‘section 1(f)(3) determined by substituting ‘calendar 
year 2013’ for ‘calendar year 1992’ in subparagraph 
(B) thereof’’ and inserting ‘‘section 1(c)(2)(A) deter-
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mined by substituting ‘calendar year 2013’ for ‘cal-
endar year 2016’ in clause (ii) thereof’’. 
(35) Section 6698(e)(1) is amended by striking 
‘‘section 1(f)(3) determined by substituting ‘calendar 
year 2013’ for ‘calendar year 1992’ in subparagraph 
(B) thereof’’ and inserting ‘‘section 1(c)(2)(A) deter-
mined by substituting ‘calendar year 2013’ for ‘cal-
endar year 2016’ in clause (ii) thereof’’. 
(36) Section 6699(e)(1) is amended by striking 
‘‘section 1(f)(3) determined by substituting ‘calendar 
year 2013’ for ‘calendar year 1992’ in subparagraph 
(B) thereof’’ and inserting ‘‘section 1(c)(2)(A) deter-
mined by substituting ‘calendar year 2013’ for ‘cal-
endar year 2016’ in clause (ii) thereof’’. 
(37) Section 7345(f)(2) is amended by striking 
‘‘section 1(f)(3) for the calendar year, determined by 
substituting ‘calendar year 2015’ for ‘calendar year 
1992’ in subparagraph (B) thereof’’ and inserting 
‘‘section 1(c)(2)(A) for the calendar year, deter-
mined by substituting ‘calendar year 2015’ for ‘cal-
endar year 2016’ in clause (ii) thereof’’. 
(38) Section 7430(c)(1) is amended by striking 
‘‘section 1(f)(3) for such calendar year, by sub-
stituting ‘calendar year 1995’ for ‘calendar year 
1992’ in subparagraph (B) thereof’’ in the flush text 
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at the end and inserting ‘‘section 1(c)(2)(A) for such 
calendar year, determined by substituting ‘calendar 
year 1995’ for ‘calendar year 2016’ in clause (ii) 
thereof’’. 
(39) Section 7872(g)(5) is amended to read as 
follows: 
‘‘(5) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
loan made during any calendar year after 2018 
to which paragraph (1) applies, the adjusted 
dollar amount shall be increased by an amount 
equal to— 
‘‘(i) such adjusted dollar amount, 
multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(c)(2)(A) for such 
calendar year, determined by substituting 
‘calendar year 2017’ for ‘calendar year 
2016’ in clause (ii) thereof. 
‘‘(B) ADJUSTED
DOLLAR
AMOUNT.—For 
purposes of this paragraph, the term ‘adjusted 
dollar amount’ means the dollar amount in 
paragraph (2) as in effect for calendar year 
2018. 
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‘‘(C) ROUNDING.—Any increase under sub-
paragraph (A) shall be rounded to the nearest 
multiple of $100.’’. 
(40) Section 219(b)(5)(C)(i)(II) is amended by 
striking ‘‘section 1(f)(3) for the calendar year in 
which the taxable year begins, determined by sub-
stituting ‘calendar year 2007’ for ‘calendar year 
1992’ in subparagraph (B) thereof’’ and inserting 
‘‘section 1(c)(2)(A) for the calendar year in which 
the taxable year begins, determined by substituting 
‘calendar year 2007’ for ‘calendar year 2016’ in 
clause (ii) thereof’’. 
(41) Section 219(g)(8)(B) is amended by strik-
ing ‘‘section 1(f)(3) for the calendar year in which 
the taxable year begins, determined by substituting 
‘calendar year 2005’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof’’ and inserting ‘‘section 
1(c)(2)(A) for the calendar year in which the taxable 
year begins, determined by substituting ‘calendar 
year 2005’ for ‘calendar year 2016’ in clause (ii) 
thereof’’. 
(b) OTHER CONFORMING AMENDMENTS.— 
(1) Section 36B(b)(3)(B)(ii)(I)(aa) is amended 
to read as follows: 
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posed on the taxable income of an electing Settlement 
Trust a tax at the rate specified in section 1(a)(1). Such 
tax shall be in lieu of the income tax otherwise imposed 
by this chapter on such income.’’. 
(7) Section 685(c) is amended by striking ‘‘Sec-
tion 1(e)’’ and inserting ‘‘Section 1’’. 
(8) Section 904(b)(3)(E)(ii)(I) is amended by 
striking ‘‘set forth in subsection (a), (b), (c), (d), or 
(e) of section 1 (whichever applies)’’ and inserting 
‘‘the highest rate of tax specified in section 1’’. 
(9) Section 1398(c)(2) is amended by striking 
‘‘subsection (d) of’’. 
(10) Section 3402(p)(1)(B) is amended by 
striking ‘‘any percentage applicable to any of the 3 
lowest income brackets in the table under section 
1(c),’’ and inserting ‘‘12 percent, 25 percent,’’. 
(11) Section 3402(q)(1) is amended by striking 
‘‘the product of third lowest rate of tax applicable 
under section 1(c) and’’ and inserting ‘‘25 percent 
of’’. 
(12) Section 3402(r)(3) is amended by striking 
‘‘the amount of tax which would be imposed by sec-
tion 1(c) (determined without regard to any rate of 
tax in excess of the fourth lowest rate of tax applica-
ble under section 1(c)) on an amount of taxable in-
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come equal to’’ and inserting ‘‘an amount equal to 
the product of 25 percent multiplied by’’. 
(13) Section 3406(a)(1) is amended by striking 
‘‘the product of the fourth lowest rate of tax applica-
ble under section 1(c) and’’ and inserting ‘‘25 per-
cent of’’. 
(14) Section 6103(e)(1)(A)(iii) is amended by 
inserting ‘‘(as in effect on the day before the date 
of the enactment of the Tax Cuts and Jobs Act)’’ 
after ‘‘section 1(g)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
Subtitle B—Simplification and Re-
form of Family and Individual 
Tax Credits 
SEC. 1101. ENHANCEMENT OF CHILD TAX CREDIT AND NEW 
FAMILY TAX CREDIT. 
(a) INCREASE IN CREDIT AMOUNT AND ADDITION OF 
OTHER DEPENDENTS.— 
(1) IN GENERAL.—Section 24(a) is amended to read 
as follows: 
‘‘(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— 
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‘‘(1) with respect to each qualifying child of the 
taxpayer, $1,600, and 
‘‘(2) for taxable years beginning before January 
1, 2023, with respect to the taxpayer (each spouse 
in the case of a joint return) and each dependent of 
the taxpayer to whom paragraph (1) does not apply, 
$300.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 24(c) is amended— 
(i) by redesignating paragraphs (1) and 
(2) as paragraphs (2) and (3), respectively, 
(ii) by striking ‘‘152(c)’’ in paragraph (2) 
(as so redesignated) and inserting ‘‘7706(c)’’, 
(iii) by inserting before paragraph (2) (as 
so redesignated) the following new paragraph: 
‘‘(1) DEPENDENT.— 
‘‘(A) IN GENERAL.—The term ‘dependent’ 
shall have the meaning given such term by sec-
tion 7706. 
‘‘(B) CERTAIN INDIVIDUALS NOT TREATED 
AS DEPENDENTS.—In the case of an individual 
with respect to whom a credit under this section 
is allowable to another taxpayer for a taxable 
year beginning in the calendar year in which 
the individual’s taxable year begins, the amount 
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applicable to such individual under subsection 
(a) for such individual’s taxable year shall be 
zero.’’, 
(iv) in paragraph (3) (as so redesig-
nated)— 
(I) by striking ‘‘term ‘qualifying 
child’ ’’ and inserting ‘‘terms ‘qualifying 
child’ and ‘dependent’ ’’, and 
(II) by striking ‘‘152(b)(3)’’ and in-
serting ‘‘7706(b)(3)’’, and 
(v) in the heading by striking ‘‘QUALI-
FYING’’ and inserting ‘‘DEPENDENT; QUALI-
FYING’’. 
(B) The heading for section 24 is amended by 
inserting ‘‘AND FAMILY’’ after ‘‘CHILD’’. 
(C) 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 and inserting 
the following new item: 
‘‘Sec. 24. Child and family tax credit.’’. 
(b) ELIMINATION OF MARRIAGE PENALTY.—Section 
24(b)(2) is amended— 
(1) by striking ‘‘$110,000’’ in subparagraph (A) and 
inserting ‘‘$230,000’’, 
(2) by inserting ‘‘and’’ at the end of subparagraph 
(A), 
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(3) by striking ‘‘$75,000 in the case of an individual 
who is not married’’ and all that follows through the pe-
riod at the end and inserting ‘‘one-half of the amount in 
effect under subparagraph (A) for the taxable year in the 
case of any other individual.’’. 
(c) CREDIT
REFUNDABLE
UP
TO
$1,000 PER 
CHILD.— 
(1) IN GENERAL.—Section 24(d)(1)(A) is amended 
by striking all that follows ‘‘under this section’’ and insert-
ing the following: ‘‘determined— 
‘‘(i) without regard to this subsection 
and the limitation under section 26(a), 
‘‘(ii) without regard to subsection 
(a)(2), and 
‘‘(iii) by substituting ‘$1,000’ for 
‘$1,600’ in subsection (a)(1), or’’. 
(2) INFLATION
ADJUSTMENT.—Section 24(d) is 
amended by inserting after paragraph (2) the following 
new paragraph: 
‘‘(3) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 
2017, the $1,000 amount in paragraph (1)(A)(iii) 
shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
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‘‘(B) the cost-of-living adjustment under 
section 1(c)(2)(A) for such calendar year. 
Any increase determined under the preceding sen-
tence shall be rounded to the next highest multiple 
of $100 and shall not exceed the amount in effect 
under subsection (a)(2).’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 1102. REPEAL OF NONREFUNDABLE CREDITS. 
(a) REPEAL OF SECTION 22.— 
(1) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 is amended by striking sec-
tion 22 (and by striking the item relating to such 
section in the table of sections for such subpart). 
(2) CONFORMING AMENDMENT.— 
(A) Section 86(f) is amended by striking 
paragraph (1) and by redesignating paragraphs 
(2), (3), and (4) as paragraphs (1), (2), and 
(3), respectively. 
(B)(i) Subsections (c)(3)(B) and (d)(4)(A) 
of section 7706, as redesignated by this Act, 
are each amended by striking ‘‘(as defined in 
section 22(e)(3)’’. 
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(ii) Section 7706(f), as redesignated by 
this Act, is amended by redesignating para-
graph (7) as paragraph (8) and by inserting 
after paragraph (6) the following new para-
graph: 
‘‘(7) PERMANENT AND TOTAL DISABILITY DE-
FINED.—An individual is permanently and totally 
disabled if he is unable to engage in any substantial 
gainful activity by reason of any medically deter-
minable physical or mental impairment which can be 
expected to result in death or which has lasted or 
can be expected to last for a continuous period of 
not less than 12 months. An individual shall not be 
considered to be permanently and totally disabled 
unless he furnishes proof of the existence thereof in 
such form and manner, and at such times, as the 
Secretary may require.’’. 
(iii) Section 415(c)(3)(C)(i) is amended by 
striking ‘‘22(e)(3)’’ and inserting ‘‘7706(f)(7)’’. 
(iv) Section 422(c)(6) is amended by strik-
ing ‘‘22(e)(3)’’ and inserting ‘‘7706(f)(7)’’. 
(b) TERMINATION OF SECTION 25.—Section 25, as 
amended by section 3601, is amended by adding at the 
end the following new subsection: 
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‘‘(k) TERMINATION.—No credit shall be allowed 
under this section with respect to any mortgage credit cer-
tificate issued after December 31, 2017.’’. 
(c) REPEAL OF SECTION 30D.— 
(1) IN GENERAL.—Subpart B of part IV of 
subchapter A of chapter 1 is amended by striking 
section 30D (and by striking the item relating to 
such section in the table of sections for such sub-
part). 
(2) CONFORMING AMENDMENTS.— 
(A) Section 38(b) is amended by striking 
paragraph (35). 
(B) Section 1016(a) is amended by strik-
ing paragraph (37). 
(C) Section 6501(m) is amended by strik-
ing ‘‘30D(e)(4),’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by this 
section shall apply to taxable years beginning after 
December 31, 2017. 
(2) SUBSECTION (b).—The amendment made 
by subsection (c) shall apply to taxable years ending 
after December 31, 2017. 
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(3) SUBSECTION (c).—The amendments made 
by subsection (d) shall apply to vehicles placed in 
service in taxable years beginning after December 
31, 2017. 
SEC. 1103. REFUNDABLE CREDIT PROGRAM INTEGRITY. 
(a) IDENTIFICATION REQUIREMENTS
FOR CHILD 
AND FAMILY TAX CREDIT.— 
(1) IN GENERAL.—Section 24(e) is amended to 
read as follows: 
‘‘(e) IDENTIFICATION REQUIREMENTS.— 
‘‘(1) 
REQUIREMENTS
FOR
QUALIFYING 
CHILD.—No credit shall be allowed under this sec-
tion to a taxpayer with respect to any qualifying 
child unless the taxpayer includes the name and so-
cial security number of such qualifying child on the 
return of tax for the taxable year. The preceding 
sentence shall not prevent a qualifying child from 
being treated as a dependent described in subsection 
(a)(2). 
‘‘(2) 
OTHER
IDENTIFICATION
REQUIRE-
MENTS.—No credit shall be allowed under this sec-
tion with respect to any individual unless the tax-
payer identification number of such individual is in-
cluded on the return of tax for the taxable year and 
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such identifying number was issued before the due 
date for filing the return for the taxable year. 
‘‘(3) SOCIAL
SECURITY
NUMBER.—For pur-
poses of this subsection, the term ‘social security 
number’ means a social security number issued by 
the Social Security Administration (but only if the 
social security number is issued to a citizen of the 
United States or pursuant to subclause (I) (or that 
portion of subclause (III) that relates to subclause 
(I)) of section 205(c)(2)(B)(i) of the Social Security 
Act)).’’. 
(2) OMISSIONS TREATED AS MATHEMATICAL OR 
CLERICAL ERROR.— 
(A) IN
GENERAL.—Section 6213(g)(2)(I) 
is amended to read as follows: 
‘‘(I) an omission of a correct social secu-
rity number, or a correct TIN, required under 
section 24(e) (relating to child tax credit), to be 
included on a return,’’. 
(b) SOCIAL SECURITY NUMBER MUST BE PRO-
VIDED.— 
(1) IN
GENERAL.—Section 25A(f)(1)(A), as 
amended by section 1201 of this Act, is amended by 
striking ‘‘taxpayer identification number’’ each place 
it appears and inserting ‘‘social security number’’. 
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(2) OMISSION TREATED AS MATHEMATICAL OR 
CLERICAL ERROR.—Section 6213(g)(2)(J) is amend-
ed by striking ‘‘TIN’’ and inserting ‘‘social security 
number and employer identification number’’. 
(c) INDIVIDUALS PROHIBITED FROM ENGAGING IN 
EMPLOYMENT IN UNITED STATES NOT ELIGIBLE FOR 
EARNED INCOME TAX CREDIT.—Section 32(m) is amend-
ed— 
(1) by striking ‘‘(other than:’’ and all that fol-
lows through ‘‘of the Social Security Act)’’, and 
(2) by inserting before the period at the end the 
following: ‘‘, but only if, in the case of subsection 
(c)(1)(E), the social security number is issued to a 
citizen of the United States or pursuant to subclause 
(I) (or that portion of subclause (III) that relates to 
subclause (I)) of section 205(c)(2)(B)(i) of the So-
cial Security Act’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 1104. PROCEDURES TO REDUCE IMPROPER CLAIMS 
OF EARNED INCOME CREDIT. 
(a) CLARIFICATION REGARDING DETERMINATION OF 
SELF-EMPLOYMENT INCOME WHICH IS TREATED
AS 
EARNED INCOME.—Section 32(c)(2)(B) is amended by 
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striking ‘‘and’’ at the end of clause (v), by striking the 
period at the end of clause (vi) and inserting ‘‘, and’’, and 
by adding at the end the following new clause: 
‘‘(vii) in determining the taxpayer’s 
net earnings from self-employment under 
subparagraph (A)(ii) there shall not fail to 
be taken into account any deduction which 
is allowable to the taxpayer under this sub-
title.’’. 
(b) REQUIRED QUARTERLY REPORTING OF WAGES 
OF EMPLOYEES.—Section 6011 is amended by adding at 
the end the following new subsection: 
‘‘(i) EMPLOYER REPORTING OF WAGES.—Every per-
son required to deduct and withhold from an employee a 
tax under section 3101 or 3402 shall include on each re-
turn or statement submitted with respect to such tax, the 
name and address of such employee and the amount of 
wages for such employee on which such tax was with-
held.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years ending after the date of 
the enactment of this Act. 
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(2) REPORTING.—The Secretary of the Treas-
ury, or his designee, may delay the application of the 
amendment made by subsection (b) for such period 
as such Secretary (or designee) determines to be 
reasonable to allow persons adequate time to modify 
electronic (or other) systems to permit such person 
to comply with the requirements of such amend-
ment. 
SEC. 1105. CERTAIN INCOME DISALLOWED FOR PURPOSES 
OF THE EARNED INCOME TAX CREDIT. 
(a) SUBSTANTIATION REQUIREMENT.—Section 32 is 
amended by adding at the end the following new sub-
section: 
‘‘(n) INCONSISTENT INCOME REPORTING.—If the 
earned income of a taxpayer claimed on a return for pur-
poses of this section is not substantiated by statements 
or returns under sections 6051, 6052, 6041(a), or 6050W 
with respect to such taxpayer, the Secretary may require 
such taxpayer to provide books and records to substantiate 
such income, including for the purpose of preventing 
fraud.’’. 
(b) EXCLUSION
OF UNSUBSTANTIATED AMOUNT 
FROM EARNED INCOME.—Section 32(c)(2) is amended by 
adding at the end the following new subparagraph: 
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‘‘(C) EXCLUSION.—In the case of a tax-
payer with respect to which there is an incon-
sistency described in subsection (n) who fails to 
substantiate such inconsistency to the satisfac-
tion of the Secretary, the term ‘earned income’ 
shall not include amounts to the extent of such 
inconsistency.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Subtitle C—Simplification and 
Reform of Education Incentives 
SEC. 1201. AMERICAN OPPORTUNITY TAX CREDIT. 
(a) IN GENERAL.—Section 25A is amended to read 
as follows: 
‘‘SEC. 25A. AMERICAN OPPORTUNITY TAX CREDIT. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal to 
the sum of— 
‘‘(1) 100 percent of so much of the qualified 
tuition and related expenses paid by the taxpayer 
during the taxable year (for education furnished to 
any eligible student for whom an election is in effect 
under this section for such taxable year during any 
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academic period beginning in such taxable year) as 
does not exceed $2,000, plus 
‘‘(2) 25 percent of so much of such expenses so 
paid as exceeds the dollar amount in effect under 
paragraph (1) but does not exceed twice such dollar 
amount. 
‘‘(b) PORTION OF CREDIT REFUNDABLE.—40 per-
cent of the credit allowable under subsection (a)(1) (deter-
mined without regard to this subsection and section 26(a) 
and after application of all other provisions of this section) 
shall be treated as a credit allowable under subpart C (and 
not under this part). The preceding sentence shall not 
apply to any taxpayer for any taxable year if such tax-
payer is a child to whom section 1(d) applies for such tax-
able year. 
‘‘(c) LIMITATION BASED ON MODIFIED ADJUSTED 
GROSS INCOME.— 
‘‘(1) IN GENERAL.—The amount allowable as a 
credit under subsection (a) for any taxable year shall 
be reduced (but not below zero) by an amount which 
bears the same ratio to the amount so allowable (de-
termined without regard to this subsection and sub-
section (b) but after application of all other provi-
sions of this section) as— 
‘‘(A) the excess of— 
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‘‘(i) the taxpayer’s modified adjusted 
gross income for such taxable year, over 
‘‘(ii) $80,000 (twice such amount in 
the case of a joint return), bears to 
‘‘(B) $10,000 (twice such amount in the 
case of a joint return). 
‘‘(2) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this subsection, the term ‘modified 
adjusted gross income’ means the adjusted gross in-
come of the taxpayer for the taxable year increased 
by any amount excluded from gross income under 
section 911, 931, or 933. 
‘‘(d) OTHER LIMITATIONS.— 
‘‘(1) CREDIT ALLOWED ONLY FOR 5 TAXABLE 
YEARS.—An election to have this section apply may 
not be made for any taxable year if such an election 
(by the taxpayer or any other individual) is in effect 
with respect to such student for any 5 prior taxable 
years. 
‘‘(2) CREDIT
ALLOWED
ONLY
FOR
FIRST
YEARS OF POSTSECONDARY EDUCATION.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under subsection (a) for a taxable year 
with respect to the qualified tuition and related 
expenses of an eligible student if the student 
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has completed (before the beginning of such 
taxable year) the first 5 years of postsecondary 
education at an eligible educational institution. 
‘‘(B) FIFTH YEAR LIMITATIONS.—In the 
case of an eligible student with respect to whom 
an election has been in effect for 4 preceding 
taxable years for purposes of the fifth taxable 
year— 
‘‘(i) the amount of the credit allowed 
under this section for the taxable year 
shall not exceed an amount equal to 50 
percent of the credit otherwise determined 
with respect to such student under this 
section (without regard to this subpara-
graph), and 
‘‘(ii) the amount of the credit deter-
mined under subsection (b) and allowable 
under subpart C shall not exceed an 
amount equal to 40 percent of the amount 
determined with respect to such student 
under clause (i). 
‘‘(e) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE STUDENT.—The term ‘eligible 
student’ means, with respect to any academic period, 
a student who— 
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‘‘(A) meets the requirements of section 
484(a)(1) of the Higher Education Act of 1965 
(20 U.S.C. 1091(a)(1)), as in effect on August 
5, 1997, and 
‘‘(B) is carrying at least 1⁄2 the normal 
full-time work load for the course of study the 
student is pursuing. 
‘‘(2) QUALIFIED
TUITION
AND
RELATED
EX-
PENSES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
tuition and related expenses’ means tuition, 
fees, and course materials, required for enroll-
ment or attendance of— 
‘‘(i) the taxpayer, 
‘‘(ii) the taxpayer’s spouse, or 
‘‘(iii) any dependent of the taxpayer, 
at an eligible educational institution for courses 
of instruction of such individual at such institu-
tion. 
‘‘(B) EXCEPTION FOR EDUCATION INVOLV-
ING SPORTS, ETC.—Such term does not include 
expenses with respect to any course or other 
education involving sports, games, or hobbies, 
unless such course or other education is part of 
the individual’s degree program. 
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‘‘(C) 
EXCEPTION
FOR
NONACADEMIC 
FEES.—Such term does not include student ac-
tivity fees, athletic fees, insurance expenses, or 
other expenses unrelated to an individual’s aca-
demic course of instruction. 
‘‘(3) ELIGIBLE EDUCATIONAL INSTITUTION.— 
The term ‘eligible educational institution’ means an 
institution— 
‘‘(A) which is described in section 481 of 
the Higher Education Act of 1965 (20 U.S.C. 
1088), as in effect on August 5, 1997, and 
‘‘(B) which is eligible to participate in a 
program under title IV of such Act. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) IDENTIFICATION REQUIREMENTS.— 
‘‘(A) STUDENT.—No credit shall be al-
lowed under subsection (a) to a taxpayer with 
respect to the qualified tuition and related ex-
penses of an individual unless the taxpayer in-
cludes the name and taxpayer identification 
number of such individual on the return of tax 
for the taxable year, and such taxpayer identi-
fication number was issued on or before the due 
date for filing such return. 
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‘‘(B) TAXPAYER.—No credit shall be al-
lowed under this section if the identifying num-
ber of the taxpayer was issued after the due 
date for filing the return for the taxable year. 
‘‘(C) INSTITUTION.—No credit shall be al-
lowed under this section unless the taxpayer in-
cludes the employer identification number of 
any institution to which qualified tuition and 
related expenses were paid with respect to the 
individual. 
‘‘(2) ADJUSTMENT
FOR
CERTAIN
SCHOLAR-
SHIPS, ETC.—The amount of qualified tuition and 
related expenses otherwise taken into account under 
subsection (a) with respect to an individual for an 
academic period shall be reduced (before the applica-
tion of subsection (c)) by the sum of any amounts 
paid for the benefit of such individual which are allo-
cable to such period as— 
‘‘(A) a qualified scholarship which is ex-
cludable from gross income under section 117, 
‘‘(B) an educational assistance allowance 
under chapter 30, 31, 32, 34, or 35 of title 38, 
United States Code, or under chapter 1606 of 
title 10, United States Code, and 
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‘‘(C) a payment (other than a gift, be-
quest, devise, or inheritance within the meaning 
of section 102(a)) for such individual’s edu-
cational expenses, or attributable to such indi-
vidual’s enrollment at an eligible educational in-
stitution, which is excludable from gross income 
under any law of the United States. 
‘‘(3) TREATMENT OF EXPENSES PAID BY DE-
PENDENT.—If an individual is a dependent of an-
other taxpayer for a taxable year beginning in the 
calendar year in which such individuals taxable year 
begins— 
‘‘(A) no credit shall be allowed under sub-
section (a) to such individual for such individ-
ual’s taxable year, and 
‘‘(B) qualified tuition and related expenses 
paid by such individual during such individual’s 
taxable year shall be treated for purposes of 
this section as paid by such other taxpayer. 
‘‘(4) 
TREATMENT
OF
CERTAIN
PREPAY-
MENTS.—If qualified tuition and related expenses 
are paid by the taxpayer during a taxable year for 
an academic period which begins during the first 3 
months following such taxable year, such academic 
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period shall be treated for purposes of this section 
as beginning during such taxable year. 
‘‘(5) DENIAL OF DOUBLE BENEFIT.—No credit 
shall be allowed under this section for any amount 
for which a deduction is allowed under any other 
provision of this chapter. 
‘‘(6) NO
CREDIT
FOR
MARRIED
INDIVIDUALS 
FILING SEPARATE RETURNS.—If the taxpayer is a 
married individual (within the meaning of section 
7703), this section shall apply only if the taxpayer 
and the taxpayer’s spouse file a joint return for the 
taxable year. 
‘‘(7) NONRESIDENT ALIENS.—If the taxpayer is 
a nonresident alien individual for any portion of the 
taxable year, this section shall apply only if such in-
dividual is treated as a resident alien of the United 
States for purposes of this chapter by reason of an 
election under subsection (g) or (h) of section 6013. 
‘‘(8) RESTRICTIONS ON TAXPAYERS WHO IM-
PROPERLY CLAIMED CREDIT IN PRIOR YEAR.— 
‘‘(A) TAXPAYERS MAKING PRIOR FRAUDU-
LENT OR RECKLESS CLAIMS.— 
‘‘(i) IN GENERAL.—No credit shall be 
allowed under this section for any taxable 
year in the disallowance period. 
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‘‘(ii) DISALLOWANCE
PERIOD.—For 
purposes of clause (i), the disallowance pe-
riod is— 
‘‘(I) the period of 10 taxable 
years after the most recent taxable 
year for which there was a final deter-
mination 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 deter-
mination 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). 
‘‘(B) 
TAXPAYERS
MAKING
IMPROPER 
PRIOR CLAIMS.—In the case of a taxpayer who 
is denied credit under this section for any tax-
able year as a result of the deficiency proce-
dures 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 Secretary may 
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require to demonstrate eligibility for such cred-
it. 
‘‘(g) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a taxable 
year beginning after 2018, the $80,000 amount in 
subsection (c)(1)(A)(ii) shall each be increased by an 
amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(c)(2)(A) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2017’ for 
‘calendar year 2016’ in clause (ii) thereof. 
‘‘(2) ROUNDING.—If any amount as adjusted 
under paragraph (1) is not a multiple of $1,000, 
such amount shall be rounded to the next lowest 
multiple of $1,000. 
‘‘(h) REGULATIONS.—The Secretary may prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out this section, including regula-
tions providing for a recapture of the credit allowed under 
this section in cases where there is a refund in a subse-
quent taxable year of any amount which was taken into 
account in determining the amount of such credit.’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 72(t)(7)(B) is amended by striking 
‘‘section 
25A(g)(2)’’ 
and 
inserting 
‘‘section 
25A(f)(2)’’. 
(2) Section 529(c)(3)(B)(v)(I) is amended by 
striking ‘‘section 25A(g)(2)’’ and inserting ‘‘section 
25A(f)(2)’’. 
(3) Section 529(e)(3)(B)(i) is amended by strik-
ing ‘‘section 25A(b)(3)’’ and inserting ‘‘section 
25A(d)’’. 
(4) Section 530(d)(2)(C) is amended— 
(A) by striking ‘‘section 25A(g)(2)’’ in 
clause (i)(I) and inserting ‘‘section 25A(f)(2)’’, 
and 
(B) by striking ‘‘HOPE
AND
LIFETIME 
LEARNING CREDITS’’ in the heading and insert-
ing ‘‘AMERICAN OPPORTUNITY TAX CREDIT’’. 
(5) Section 530(d)(4)(B)(iii) is amended by 
striking ‘‘section 25A(g)(2)’’ and inserting ‘‘section 
25A(d)(4)(B)’’. 
(6) Section 6050S(e) is amended by striking 
‘‘subsection 
(g)(2)’’ 
and 
inserting 
‘‘subsection 
(f)(2)’’. 
(7) Section 6211(b)(4)(A) is amended by strik-
ing ‘‘subsection (i)(6)’’ and inserting ‘‘subsection 
(b)’’. 
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(8) Section 6213(g)(2)(J) is amended by strik-
ing ‘‘TIN required under section 25A(g)(1)’’ and in-
serting ‘‘TIN, and employer identification number, 
required under section 25A(f)(1)’’. 
(9) Section 6213(g)(2)(Q) is amended to read 
as follows: 
‘‘(Q) an omission of information required 
by section 25A(f)(8)(B) or an entry on the re-
turn claiming the credit determined under sec-
tion 25A(a) for a taxable year for which the 
credit 
is 
disallowed 
under 
section 
25A(f)(8)(A).’’. 
(10) Section 1004(c) of division B of the Amer-
ican Recovery and Reinvestment Tax Act of 2009 is 
amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘section 25A(i)(6)’’ 
each place it appears and inserting ‘‘sec-
tion 25A(b)’’, and 
(ii) by striking ‘‘with respect to tax-
able years beginning after 2008 and before 
2018’’ each place it appears and inserting 
‘‘with respect to each taxable year’’, 
(B) in paragraph (2), by striking ‘‘Section 
25A(i)(6)’’ and inserting ‘‘Section 25A(b)’’, and 
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(C) in paragraph (3)(C), by striking ‘‘sub-
section (i)(6)’’ and inserting ‘‘subsection (b)’’. 
(11) 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 25A and insert-
ing the following new item: 
‘‘Sec. 25A. American opportunity tax credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 
1202. 
CONSOLIDATION 
OF 
EDUCATION 
SAVINGS 
RULES. 
(a) NO NEW CONTRIBUTIONS TO COVERDELL EDU-
CATION SAVINGS ACCOUNT.—Section 530(b)(1)(A) is 
amended to read as follows: 
‘‘(A) Except in the case of rollover con-
tributions, no contribution will be accepted after 
December 31, 2017.’’. 
(b) LIMITED DISTRIBUTION ALLOWED FOR ELEMEN-
TARY AND SECONDARY TUITION.— 
(1) IN GENERAL.—Section 529(c) is amended 
by adding at the end the following new paragraph: 
‘‘(7) TREATMENT OF ELEMENTARY AND SEC-
ONDARY TUITION.—Any reference in this subsection 
to the term ‘qualified higher education expense’ shall 
include a reference to expenses for tuition in connec-
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tion with enrollment at an elementary or secondary 
school.’’. 
(2) 
LIMITATION.—Section 
529(e)(3)(A) 
is 
amended by adding at the end the following: ‘‘The 
amount of cash distributions from all qualified tui-
tion programs described in subsection (b)(1)(A)(ii) 
with respect to a beneficiary during any taxable 
year, shall, in the aggregate, include not more than 
$10,000 in expenses for tuition incurred during the 
taxable year in connection with the enrollment or at-
tendance of the beneficiary as an elementary or sec-
ondary school student at a public, private, or reli-
gious school.’’. 
(c) ROLLOVERS TO QUALIFIED TUITION PROGRAMS 
PERMITTED.—Section 530(d)(5) is amended by inserting 
‘‘, or into (by purchase or contribution) a qualified tuition 
program (as defined in section 529),’’ after ‘‘into another 
Coverdell education savings account’’. 
(d) DISTRIBUTIONS FROM QUALIFIED TUITION PRO-
GRAMS FOR CERTAIN EXPENSES ASSOCIATED WITH REG-
ISTERED
APPRENTICESHIP
PROGRAMS.—Section 
529(e)(3) is amended by adding at the end the following 
new subparagraph: 
‘‘(C) CERTAIN
EXPENSES
ASSOCIATED 
WITH
REGISTERED
APPRENTICESHIP
PRO-
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GRAMS.—The term ‘qualified higher education 
expenses’ shall include books, supplies, and 
equipment required for the enrollment or at-
tendance of a designated beneficiary in an ap-
prenticeship program registered and certified 
with the Secretary of Labor under section 1 of 
the National Apprenticeship Act (29 U.S.C. 
50).’’. 
(e) UNBORN CHILDREN ALLOWED
AS ACCOUNT 
BENEFICIARIES.—Section 529(e) is amended by adding at 
the end the following new paragraph: 
‘‘(6) TREATMENT OF UNBORN CHILDREN.— 
‘‘(A) IN GENERAL.—Nothing shall prevent 
an unborn child from being treated as a des-
ignated beneficiary or an individual under this 
section. 
‘‘(B) UNBORN
CHILD.—For purposes of 
this paragraph— 
‘‘(i) IN GENERAL.—The term ‘unborn 
child’ means a child in utero. 
‘‘(ii) CHILD
IN
UTERO.—The term 
‘child in utero’ means a member of the 
species homo sapiens, at any stage of de-
velopment, who is carried in the womb.’’. 
(f) EFFECTIVE DATES.— 
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(B) Section 3402(m)(1) is amended by 
striking ‘‘(other than paragraph (10) thereof)’’. 
(3) RELATED TO REPEAL OF SECTION 71.— 
(A) Section 121(d)(3) is amended— 
(i) by striking ‘‘(as defined in section 
71(b)(2))’’ in subparagraph (B), and 
(ii) by adding at the end the following 
new subparagraph: 
‘‘(C) DIVORCE
OR
SEPARATION
INSTRU-
MENT.—For purposes of this paragraph, the 
term 
‘divorce 
or 
separation 
instrument’ 
means— 
‘‘(i) a decree of divorce or separate 
maintenance or a written instrument inci-
dent to such a decree, 
‘‘(ii) a written separation agreement, 
or 
‘‘(iii) a decree (not described in clause 
(i)) requiring a spouse to make payments 
for the support or maintenance of the 
other spouse.’’. 
(B) Section 220(f)(7) is amended by strik-
ing ‘‘subparagraph (A) of section 71(b)(2)’’ and 
inserting ‘‘clause (i) of section 121(d)(3)(C)’’. 
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