I 
108TH CONGRESS 
1ST SESSION H. R. 2756
To direct the Commissioner of Internal Revenue to establish an earned income 
credit public awareness campaign to increase public awareness and edu-
cate Americans of the earned income credit. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 16, 2003
Mr. HASTINGS of Florida introduced the following bill; which was referred to 
the Committee on Ways and Means 
A BILL 
To direct the Commissioner of Internal Revenue to establish 
an earned income credit public awareness campaign to 
increase public awareness and educate Americans of the 
earned income credit.
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 ‘‘Earned Income Credit 
Public Awareness Campaign Act’’. 
SEC. 2. FINDINGS. 
The Congress finds the following:
(1) In 2001, the earned income credit provided 
over $30,000,000,000 in tax relief to 18,500,000 
low-income taxpayers. 
(2) The earned income credit is the second larg-
est program, after Medicaid, that provides assistance 
to low-income individuals combating poverty. 
(3) Data from the United States Census Bu-
reau Current Population Survey indicates that in 
1999, the earned income credit assisted 4,700,000 
people, including 2,600,000 children of low-income 
workers, to rise above the poverty line. 
(4) Each year, between 15 and 25 percent of 
those who are eligible to receive the earned income 
credit fail to claim their credit, either because they 
are unaware of it or cannot obtain the assistance 
they may need to properly complete the appropriate 
tax return. 
(5) Lack of education, language barriers, fear 
or intimidation, limited financial resources, and 
unawareness of the earned income credit all con-
tribute to low-income families and individuals not 
taking advantage of the credit. 
(6) The Taxpayer Advocate’s Fiscal Year 2002 
Annual Report notes, ‘‘The laws and regulations 
governing family status in the Internal Revenue
Code are numerous and complex. As a result, tax-
payers must often seek the service of paid tax pre-
parers to claim credits and benefits on returns. Low 
income taxpayers are particularly susceptible to this 
need. They rely extensively on paid preparers to as-
sist in navigating the intricacies of the Earned In-
come Tax Credit’’. 
(7) 2002 Internal Revenue Service data indi-
cates that nearly 68 percent of earned income credit 
recipients pay someone to prepare their tax returns, 
and fewer than 1 in 10 have their tax returns pre-
pared for free by the Volunteer Income Tax Assist-
ance program. 
(8) An estimated $994,000,000 in earned in-
come credit refunds were paid by the taxpayer di-
rectly to tax preparers and related businesses for 
costs associated with preparation, filing, loans, and 
check cashing. 
(9) Many low-income families and individuals 
are disproportionately disadvantaged in meeting the 
financial obligation of hiring tax preparers and pur-
chasing tax preparation products. 
(10) According to the Taxpayer Advocate’s Fis-
cal Year 2002 Annual Report, ‘‘The Internal Rev-
enue Service must undertake a significant consumer
education campaign so that low income taxpayers 
are able to make informed choices between tax pre-
parers and tax preparation products’’. 
(11) Increasing public awareness about the 
earned income credit will lead to increased utiliza-
tion of the credit by low-income families and individ-
uals. 
SEC. 3. EARNED INCOME TAX CREDIT AWARENESS CAM-
PAIGN. 
(a) ESTABLISHMENT OF NATIONAL CAMPAIGN.—The 
Commissioner of Internal Revenue (hereafter in this Act 
referred to as the ‘‘Commissioner’’) shall establish and 
carry out a national public awareness campaign to educate 
Americans of the availability of the credit allowable under 
section 32 of the Internal Revenue Code of 1986 (here-
after in this Act referred to as the ‘‘earned income credit’’. 
(b) SPECIAL TARGETED CAMPAIGN.—In carrying out 
subsection (a), the Commissioner shall make special ef-
forts to conduct outreach to—
(1) low-income families and individuals; 
(2) students; 
(3) single parents; 
(4) businesses and corporations; 
(5) limited English proficient individuals; 
(6) transient workers; and
(7) military personnel. 
(c) EDUCATIONAL ACTIVITIES.—In carrying out sub-
section (a), the Commissioner shall make special efforts 
to—
(1) produce and distribute educational mate-
rials to be distributed nationwide to groups identi-
fied under subsection (b); 
(2) conduct a targeted media campaign high-
lighting the earned income tax credit; 
(3) encourage businesses and corporations to 
make available and distribute educational materials 
produced under paragraph (1) to their employees; 
and 
(4) make educational materials available to 
public libraries, post offices, State agencies, and 
other public locations where tax information and 
forms are readily available or tax preparation serv-
ices are offered. 
(d) REPORTS TO CONGRESS.—
(1) ANNUAL REPORT.—Not later than 1 year 
after the date of enactment of this Act, and annually 
thereafter, the Commissioner shall submit to the 
Congress a report detailing the activities carried out 
by the Commissioner under this section and section
5 of this Act and recommendations for amendments 
to this Act. 
SEC. 4. EARNED INCOME TAX CREDIT STATE GRANT PRO-
GRAM. 
(a) IN GENERAL.—The Commissioner shall make 
grants to State agencies for the purposes of carrying out 
an earned income credit Statewide public awareness cam-
paign in conjunction with the national campaign under 
section 3. 
(b) ALLOTMENTS.—The Commission shall allot to 
each State for each fiscal year an amount which bears the 
same ratio to the amount appropriated to carry out sub-
section (a) for such fiscal year as the total amount of 
earned income credit claims made by residents in that 
State on returns filed during the second preceding fiscal 
year bears to the total amount of earned income credit 
claims on returns filed during such second preceding fiscal 
year. 
(c) REQUIREMENT OF MATCHING FUNDS.—To be eli-
gible to receive an allotment under this section, a State 
shall provide matching funds to a grant made available 
under this section. 
(d) APPLICATIONS.—To be eligible to receive an allot-
ment under this section, a State shall submit an applica-
tion to the Commissioner at such time, in such manner,
and containing such information as the Commissioner may 
require. 
(e) ACCOUNTABILITY.—To be eligible to receive an 
allotment under this section, within 180 days of receiving 
an allotment, a State shall submit to the Commissioner 
a detailed report indicating steps taken by the State to 
implement subsection (a) of this section. 
(f) FUNDING.—No less than 25 percent and no more 
than 50 percent of the funds appropriated to carry out 
this Act shall be made available to carry out this section. 
SEC. 5. AUTHORIZATION OF FUNDS. 
(a) IN GENERAL.—There is authorized to be appro-
priated to the Internal Revenue Service $15,000,000 for 
each of fiscal years 2004 through 2014. 
(b) LIMITATION OF ADMINISTRATIVE EXPENSES.—
Not more than 3 percent of the funds appropriated to 
carry out this Act shall be spent on administrative costs 
of the Internal Revenue Service.
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