lowance otherwise determined under paragraph 
(1) with respect to any taxpayer for such cal-
endar month (determined after the application 
of subparagraphs (A) and (B)) shall be reduced 
(but not below zero) by 1⁄12 of 5 percent of the 
excess (if any) of the taxpayer’s modified ad-
justed gross income for the applicable taxable 
year over the secondary threshold amount. 
‘‘(D) DEFINITIONS RELATED TO LIMITA-
TIONS BASED ON MODIFIED ADJUSTED GROSS 
INCOME.—For purposes of this paragraph— 
‘‘(i) INITIAL THRESHOLD AMOUNT.— 
The 
term 
‘initial 
threshold 
amount’ 
means— 
‘‘(I) $150,000, in the case of a 
joint return or surviving spouse (as 
defined in section 2(a)), 
‘‘(II) 1⁄2 the dollar amount in ef-
fect under subclause (I), in the case of 
a married individual filing a separate 
return, and 
‘‘(III) $112,500, in any other 
case. 
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‘‘(ii) 
SECONDARY
THRESHOLD 
AMOUNT.—The term ‘secondary threshold 
amount’ means— 
‘‘(I) $400,000, in the case of a 
joint return or surviving spouse (as 
defined in section 2(a)), 
‘‘(II) $300,000, in the case of a 
head of household (as defined in sec-
tion 2(b)), and 
‘‘(III) $200,000, in any other 
case. 
‘‘(iii) APPLICABLE TAXABLE YEAR.— 
The term ‘applicable taxable year’ means, 
with respect to any taxable year for which 
the credit under this section is deter-
mined— 
‘‘(I) such taxable year, or 
‘‘(II) if the taxpayer elects the 
application of this subclause (at such 
time and in such form and manner as 
the Secretary may provide), the pre-
ceding taxable year or the second pre-
ceding taxable year (as specified in 
such election). 
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‘‘(iv) MODIFIED ADJUSTED GROSS IN-
COME.—The term ‘modified adjusted gross 
income’ means adjusted gross income in-
creased by any amount excluded from 
gross income under section 911, 931, or 
933. 
‘‘(3) INFLATION ADJUSTMENTS.— 
‘‘(A) MONTHLY SPECIFIED CHILD ALLOW-
ANCE.—In the case of any month beginning 
after December 31, 2023, each dollar amount 
in paragraph (1) shall be increased by an 
amount equal to— 
‘‘(i) such dollar amount, multiplied 
by— 
‘‘(ii) the percentage (if any) by 
which— 
‘‘(I) the CPI (as defined in sec-
tion 1(f)(4)) for the calendar year 
preceding the calendar year in which 
such month begins, exceeds 
‘‘(II) the CPI (as so defined) for 
calendar year 2020. 
‘‘(B) INITIAL
THRESHOLD
AMOUNT.—In 
the case of any taxable year beginning after De-
cember 31, 2023, the dollar amounts in sub-
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clauses (I) and (III) of paragraph (2)(D)(i) 
shall each be increased by an amount equal 
to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the percentage (if any) which 
would be determined under subparagraph 
(A)(ii) if subclause (II) thereof were ap-
plied by substituting ‘2022’ for ‘2020’. 
‘‘(C) ROUNDING.— 
‘‘(i) MONTHLY SPECIFIED CHILD AL-
LOWANCE.—Any increase under subpara-
graph (A) which is not a multiple of $10 
shall be rounded to the nearest multiple of 
$10. 
‘‘(ii) INITIAL THRESHOLD AMOUNT.— 
Any increase under subparagraph (B) 
which is not a multiple of $5,000 shall be 
rounded to the nearest multiple of $5,000. 
‘‘(c) SPECIFIED CHILD.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘specified child’ 
means, with respect to any taxpayer for any cal-
endar month, an individual— 
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‘‘(A) who has the same principal place of 
abode as the taxpayer for more than one-half of 
such month, 
‘‘(B) who is younger than the taxpayer and 
will not, as of the close of such month, have at-
tained age 18, 
‘‘(C) who receives care from the taxpayer 
during such month that is not compensated, 
‘‘(D) who is not the spouse of the taxpayer 
at any time during such month, and 
‘‘(E) who either— 
‘‘(i) is a citizen, national, or resident 
of the United States, or 
‘‘(ii) if the taxpayer is a citizen or na-
tional of the United States, such individual 
is described in section 152(f)(1)(B) with 
respect to such taxpayer. 
‘‘(2) CERTAIN
INDIVIDUALS
INELIGIBLE.—In 
the case of an individual who is a specified child 
with respect to another taxpayer for any calendar 
month, such individual shall be treated for such cal-
endar month as having no specified children. 
‘‘(3) CARE FROM THE TAXPAYER.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided by the Secretary, whether any indi-
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vidual receives care from the taxpayer (within 
the meaning of paragraph (1)(C)) shall be de-
termined on the basis of facts and cir-
cumstances with respect to the following fac-
tors: 
‘‘(i) The supervision provided by the 
taxpayer regarding the daily activities and 
needs of the individual. 
‘‘(ii) The maintenance by the taxpayer 
of a secure environment at which the indi-
vidual resides. 
‘‘(iii) The provision or arrangement by 
the taxpayer of, and transportation by the 
taxpayer to, medical care at regular inter-
vals and as required for the individual. 
‘‘(iv) The involvement by the taxpayer 
in, and financial and other support by the 
taxpayer for, educational or similar activi-
ties of the individual. 
‘‘(v) Any other factor that the Sec-
retary determines to be appropriate to de-
termine whether the individual receives 
care from the taxpayer. 
‘‘(B) DETERMINATION OF WHETHER CARE 
IS
COMPENSATED.—For purposes of deter-
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mining if care is compensated within the mean-
ing of paragraph (1)(C), compensation from the 
Federal Government, a State or local govern-
ment, a Tribal government, or any possession of 
the United States shall not be taken into ac-
count. 
‘‘(4) APPLICATION OF TIE-BREAKER RULES.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (D), if any individual would (but 
for this paragraph) be a specified child of 2 or 
more taxpayers for any month, such individual 
shall be treated as the specified child only of 
the taxpayer who is— 
‘‘(i) the parent of the individual (or, if 
such individual would (but for this para-
graph) be a specified child of 2 or more 
parents of the individual for such month, 
the parent of the individual determined 
under subparagraph (B)), 
‘‘(ii) if the individual is not a specified 
child of any parent of the individual (deter-
mined without regard to this paragraph), 
the specified relative of the individual with 
the highest adjusted gross income for the 
taxable year which includes such month, or 
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year which includes such month is the total ad-
justed gross income shown on the joint return 
for the taxable year. 
‘‘(F) PARENT.—Except as otherwise pro-
vided by the Secretary, the term ‘parent’ shall 
have the same meaning as when used in section 
152(c)(4). 
‘‘(5) TREATMENT OF TEMPORARY ABSENCES.— 
Except as provided in regulations or other guidance 
issued by the Secretary, for purposes of this sub-
section— 
‘‘(A) IN GENERAL.—In the case of any in-
dividual’s temporary absence from such individ-
ual’s principal place of abode, each day com-
posing the temporary absence shall— 
‘‘(i) be treated as a day at such indi-
vidual’s principal place of abode, 
‘‘(ii) be treated as satisfying the care 
requirement described in paragraph (1)(C) 
for each day described in clause (i), and 
‘‘(iii) not be treated as a day at any 
other location. 
‘‘(B) TEMPORARY
ABSENCE.—For pur-
poses of subparagraph (A), an absence shall be 
treated as temporary if— 
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‘‘(i) the individual would have resided 
at the place of abode but for the absence, 
and 
‘‘(ii) 
under 
the 
facts 
and 
cir-
cumstances, it is reasonable to assume that 
the individual will return to reside at the 
place of abode. 
‘‘(6) SPECIAL RULE FOR DIVORCED PARENTS, 
ETC.—Rules similar to the rules section 152(e) shall 
apply for purposes of this subsection. 
‘‘(7) ELIGIBILITY DETERMINED ON BASIS OF 
PRESUMPTIVE ELIGIBILITY.— 
‘‘(A) IN
GENERAL.—If a period of pre-
sumptive eligibility is established under section 
7527B(c) for any individual with respect to any 
taxpayer— 
‘‘(i) such individual shall be treated as 
the specified child of such taxpayer for any 
month in such period of presumptive eligi-
bility, and 
‘‘(ii) such individual shall not be 
treated as the specified child of any other 
taxpayer with respect to whom a period of 
presumptive eligibility has not been estab-
lished for any such month. 
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‘‘(B) ABILITY OF CREDIT CLAIMANTS TO 
ESTABLISH PRESUMPTIVE ELIGIBILITY.—Noth-
ing in section 7527B(c) shall be interpreted to 
preclude a taxpayer from establishing a period 
of presumptive eligibility (including any such 
period described in section 7527B(c)(2)(D)) 
with respect to any specified child for purposes 
of this section solely because such taxpayer af-
firmatively elects not to receive monthly ad-
vance child payments under section 7527B. 
‘‘(d) CREDIT REFUNDABLE.—If the taxpayer (in the 
case of a joint return, either spouse) has a principal place 
of abode (determined as provided in section 32) in the 
United States or Puerto Rico for more than one-half of 
any calendar month during the taxable year, so much of 
the credit otherwise allowed under subsection (a) as is at-
tributable to monthly specified child allowances with re-
spect to any such calendar month shall be allowed under 
subpart C (and not allowed under this subpart). 
‘‘(e) IDENTIFICATION REQUIREMENTS.— 
‘‘(1) QUALIFYING CHILD IDENTIFICATION RE-
QUIREMENT.—No credit shall be allowed under this 
section to a taxpayer with respect to any qualifying 
child unless the taxpayer includes the name and tax-
payer identification number of such qualifying child 
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on the return of tax for the taxable year and such 
taxpayer identification number was issued on or be-
fore 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. 
‘‘(f) RESTRICTIONS ON TAXPAYERS WHO IMPROP-
ERLY
CLAIMED
CREDIT
OR
IMPROPERLY
RECEIVED 
MONTHLY ADVANCE CHILD PAYMENT.— 
‘‘(1) TAXPAYERS MAKING PRIOR FRAUDULENT 
OR RECKLESS CLAIMS.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under this section for any taxable year 
(and no payment shall be made under section 
7527B for any month) in the disallowance pe-
riod. 
‘‘(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 
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section or section 24 (or payment received 
under section 7527A or 7527B) was due to 
fraud, 
‘‘(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 or section 24 (or payment received 
under section 7527A or 7527B) was due to 
reckless or intentional disregard of rules 
and regulations (but not due to fraud), 
and 
‘‘(iii) in addition to any period deter-
mined under clause (i) or (ii) (as the case 
may be), the period beginning on the date 
of the final determination described in 
such clause and ending with the beginning 
of the period described in such clause. 
‘‘(2) TAXPAYERS
MAKING
IMPROPER
PRIOR 
CLAIMS.—In the case of a taxpayer who is denied 
credit under this section or section 24 for any tax-
able 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 tax-
able year (and no payment shall be made under sec-
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tion 7527B for any subsequent month) unless the 
taxpayer provides such information as the Secretary 
may require to demonstrate eligibility for such cred-
it. 
‘‘(3) COORDINATION
WITH
POSSESSIONS
OF 
THE UNITED STATES.—For purposes of this sub-
section, a taxpayer’s claim of credit under this sec-
tion or section 24 (or payment received under sec-
tion 7527A or section 7527B) includes a claim of 
credit under this section or section 24 of the income 
tax law of any jurisdiction other than the United 
States (or similar payment received under section 
7527A or section 7527B of such income tax law), 
and a claim made or a payment received from Amer-
ican Samoa pursuant to a plan described in sub-
section (i)(3)(B) or section 24(k)(3)(B). 
‘‘(g) RECONCILIATION OF CREDIT AND MONTHLY 
ADVANCE CHILD PAYMENTS.— 
‘‘(1) IN GENERAL.—The amount otherwise de-
termined under subsection (a) with respect to any 
taxpayer for any taxable year shall be reduced (but 
not below zero) by the aggregate amount of pay-
ments made under section 7527B to such taxpayer 
for one or more calendar months in such taxable 
year. Any failure to so reduce the credit shall be 
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treated as arising out of a mathematical or clerical 
error and assessed according to section 6213(b)(1). 
‘‘(2) RECAPTURE
OF
EXCESS
ADVANCE
PAY-
MENTS IN CERTAIN CIRCUMSTANCES.—In the case 
of a taxpayer described in paragraph (3) for any 
taxable year, the tax imposed by this chapter for 
such taxable year shall be increased by the excess (if 
any) of— 
‘‘(A) the aggregate amount of payments 
made to the taxpayer under section 7527B for 
one or more calendar months in such taxable 
year, over 
‘‘(B) the amount determined under sub-
section (a) with respect to the taxpayer for such 
taxable year (without regard to paragraph (1) 
of this subsection). 
‘‘(3) TAXPAYERS SUBJECT TO RECAPTURE.— 
‘‘(A) FRAUD
OR
RECKLESS
OR
INTEN-
TIONAL
DISREGARD
OF
RULES
AND
REGULA-
TIONS.—A taxpayer is described in this para-
graph with respect to any taxable year if the 
Secretary determines that the amount described 
in paragraph (2)(A) with respect to the tax-
payer for such taxable year was determined on 
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the basis of fraud or a reckless or intentional 
disregard of rules and regulations. 
‘‘(B) 
UNDERSTATEMENT
OF
INCOME; 
CHANGES IN FILING STATUS.—If the amount 
described in paragraph (2)(A) with respect to 
the taxpayer for the taxable year was deter-
mined on the basis of an amount of the tax-
payer’s modified adjusted gross income which 
was less than the taxpayer’s modified adjusted 
gross income for the applicable taxable year (as 
defined in subsection (b))— 
‘‘(i) such taxpayer shall be treated as 
described in this paragraph, and 
‘‘(ii) the increase determined under 
paragraph (2) by reason of this subpara-
graph shall not exceed the excess of— 
‘‘(I) the amount described in 
paragraph (2)(A), over 
‘‘(II) the amount which would be 
so described if the payments described 
therein had been determined on the 
basis of the taxpayer’s modified ad-
justed gross income for the applicable 
taxable year (as defined in subsection 
(b)). 
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A rule similar to the rule of the preceding 
sentence shall apply if the amount de-
scribed in paragraph (2)(A) with respect to 
the taxpayer for the taxable year was de-
termined on the basis of a filing status of 
the taxpayer which differs from the tax-
payer’s filing status for the applicable tax-
able year (as so defined). 
‘‘(C) PAYMENTS
MADE
OUTSIDE
OF
PE-
RIOD
OF
PRESUMPTIVE
ELIGIBILITY.—If any 
payment described in paragraph (2)(A) with re-
spect to the taxpayer for the taxable year was 
made with respect to a child for a month which 
was not part of a period of presumptive eligi-
bility established under section 7527B(c) for 
such child with respect to such taxpayer— 
‘‘(i) such taxpayer shall be treated as 
described in this paragraph, and 
‘‘(ii) the increase determined under 
paragraph (2) by reason of this subpara-
graph shall not exceed the portion of such 
payment so made. 
‘‘(D) CERTAIN
PAYMENTS
MADE
AFTER 
NOTICE
FROM
SECRETARY.—If the Secretary 
notifies a taxpayer under section 7527B(j)(2) 
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that such taxpayer is subject to recapture with 
respect to any payments— 
‘‘(i) such taxpayer shall be treated as 
described in this paragraph, and 
‘‘(ii) the increase determined under 
paragraph (2) by reason of this subpara-
graph shall not exceed the aggregate 
amount of such payments. 
‘‘(E) TAXPAYERS
MOVING
TO
ANOTHER 
JURISDICTION.—To minimize the amount of ad-
vance payments made under section 7527B to 
ineligible individuals, the Secretary shall issue 
regulations or other guidance for purposes of 
this paragraph which apply with respect to tax-
payers 
who 
are 
described 
in 
section 
7527B(b)(4) with respect to the reference 
month but are not so described with respect to 
one or more months during the taxable year for 
which advance payments under section 7527B 
are made. 
‘‘(F) OTHER CIRCUMSTANCES TO PREVENT 
ABUSE.—A taxpayer is described in this para-
graph with respect to any taxable year pursuant 
to regulations or other guidance of the Sec-
retary describing other recapture circumstances 
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to facilitate the administration and enforcement 
by the Secretary of section 7527B to minimize 
the amount of advance payments made under 
section 7527B to ineligible individuals and to 
prevent abuse. 
‘‘(4) JOINT
RETURNS.—Except as otherwise 
provided by the Secretary, in the case of an advance 
payment made under section 7527B with respect to 
a joint return, half of such payment shall be treated 
as having been made to each individual filing such 
return. 
‘‘(5) COORDINATION
WITH
POSSESSIONS
OF 
THE UNITED STATES.—For purposes of this sub-
section, payments made under section 7527B include 
payments made by any jurisdiction other than the 
United States under section 7527B of the income 
tax law of such jurisdiction, and advance payments 
made by American Samoa pursuant to a plan de-
scribed in subsection (h)(3)(B). Any increase in tax 
imposed on a taxpayer by reason of paragraph (2) 
of the income tax law of a jurisdiction other than 
the United States shall be considered to reduce the 
aggregate amount of payments made to such tax-
payer by such jurisdiction. In carrying out this sec-
tion, the Secretary shall coordinate with each posses-
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sion of the United States to prevent any application 
of this paragraph that is inconsistent with the pur-
poses of this subsection. 
‘‘(h) APPLICATION OF CREDIT IN POSSESSIONS.— 
‘‘(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 with-
out regard to this subsection) with respect to 
taxable years beginning in calendar years after 
2023. Such amounts shall be determined by the 
Secretary based on information provided by the 
government of the respective possession. 
‘‘(B) COORDINATION
WITH
CREDIT
AL-
LOWED
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 im-
posed by a possession of the United States with 
a mirror code tax system by reason of the appli-
cation of this section in such possession for 
such taxable year. 
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‘‘(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 li-
ability 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) CROSS REFERENCES RELATED TO APPLI-
CATION
OF
CREDIT
TO
RESIDENTS
OF
PUERTO 
RICO.— 
‘‘(A) For application of refundable credit 
to residents of Puerto Rico, see subsection (d). 
‘‘(B) For application of advance payment 
to residents of Puerto Rico, see section 
7527B(b)(4). 
‘‘(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 resi-
dents of American Samoa by reason of the ap-
plication of this section for taxable years begin-
ning in calendar years after 2023 if the provi-
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sions of this section had been in effect in Amer-
ican Samoa (applied as if American Samoa 
were the United States and without regard to 
the application of this section to residents of 
Puerto Rico under subsection (d)). 
‘‘(B) DISTRIBUTION REQUIREMENT.—Sub-
paragraph (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 
residents. 
‘‘(C) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.— 
‘‘(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 subsection) 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), subsection (d) 
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shall be applied by substituting ‘, Puerto 
Rico, or American Samoa’ for ‘or Puerto 
Rico’. 
‘‘(4) TREATMENT
OF
PAYMENTS.—For pur-
poses 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. 
‘‘(i) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as the Secretary determines 
necessary or appropriate to carry out the purposes of this 
section, including regulations or other guidance— 
‘‘(1) for determining whether an individual re-
ceives care from a taxpayer for purposes of sub-
section (c)(1), and 
‘‘(2) to coordinate or modify the application of 
this section and sections 24, 7527A, and 7527B in 
the case of any taxpayer— 
‘‘(A) whose taxable year is other than a 
calendar year, 
‘‘(B) whose filing status for a taxable year 
is different from the status used for deter-
mining one or more monthly payments under 
section 7527B during such taxable year, or 
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‘‘(C) whose principal place of abode for 
any month is different from the principal place 
of abode used for determining the monthly pay-
ment under section 7527B for such month. 
‘‘SEC. 24B. CREDIT FOR CERTAIN OTHER DEPENDENTS. 
‘‘(a) IN GENERAL.—There shall be allowed as a cred-
it against the tax imposed by this chapter for the taxable 
year an amount equal to $500 with respect to each speci-
fied dependent of such taxpayer for such taxable year. 
‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED 
GROSS INCOME.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowable under subsection (a) shall be reduced (but 
not below zero) by $50 for each $1,000 (or fraction 
thereof) by which the taxpayer’s modified adjusted 
gross income exceeds the threshold amount. 
‘‘(2) THRESHOLD AMOUNT.—For purposes of 
this 
subsection, 
the 
term 
‘threshold 
amount’ 
means— 
‘‘(A) $400,000, in the case of a joint re-
turn or surviving spouse (as defined in section 
2(a)), 
‘‘(B) $300,000, in the case of a head of 
household (as defined in section 2(b)), and 
‘‘(C) $200,000, in any other case. 
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‘‘(3) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this subsection, the term ‘modified 
adjusted gross income’ means adjusted gross income 
increased by any amount excluded from gross in-
come under section 911, 931, or 933. 
‘‘(c) SPECIFIED DEPENDENT.—For purposes of this 
section, the term ‘specified dependent’ means, with respect 
to any taxpayer for any taxable year, any dependent of 
such taxpayer for such taxable year unless such depend-
ent— 
‘‘(1) is a specified child of the taxpayer, or any 
other taxpayer, for any month during such taxable 
year, or 
‘‘(2) would not be a dependent if subparagraph 
(A) of section 152(b)(3) were applied without regard 
to all that follows ‘resident of the United States’. 
‘‘(d) IDENTIFICATION REQUIREMENTS.—Rules simi-
lar to the rules of section 24A(e) shall apply for purposes 
of this section. 
‘‘(e) 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-
able under this section in the case of a taxable year cov-
ering a period of less than 12 months. 
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‘‘(f) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as the Secretary determines 
necessary or appropriate to carry out the purposes of this 
section.’’. 
(b) MONTHLY PAYMENT OF CHILD TAX CREDIT.— 
Chapter 77 of such Code is amended by inserting after 
section 7527A the following new section: 
‘‘SEC. 7527B. MONTHLY PAYMENTS OF CHILD TAX CREDIT. 
‘‘(a) IN GENERAL.—The Secretary shall establish a 
program for making payments to taxpayers with respect 
to each calendar month equal to the monthly advance child 
payment determined with respect to such taxpayer for 
such month. 
‘‘(b) MONTHLY ADVANCE CHILD PAYMENT.—For 
purposes of this section and except as otherwise provided 
in this section, the term ‘monthly advance child payment’ 
means, with respect to any taxpayer for any calendar 
month, the amount (if any) which is estimated by the Sec-
retary as being equal to the monthly specified child allow-
ance which would be determined under section 24A(b) 
with respect to such taxpayer for such calendar month if— 
‘‘(1) unless determined by the Secretary based 
on any information known to the Secretary, the only 
specified children of such taxpayer for such calendar 
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month are the specified children of such taxpayer for 
the reference month, 
‘‘(2) unless determined by the Secretary based 
on any information known to the Secretary, the ages 
of such children (and the status of such children as 
specified children) are determined for such calendar 
month by taking into account the passage of time 
since such reference month, 
‘‘(3) the limitations of section 24A(b)(2) were 
applied with respect to the reference taxable year 
rather than with respect to the applicable taxable 
year, and 
‘‘(4) unless determined by the Secretary based 
on any information known to the Secretary, no 
monthly specified child allowance were determined 
with respect to such taxpayer for such calendar 
month unless the taxpayer (in the case of a joint re-
turn, either spouse) has a principal place of abode 
(determined as provided in section 32) in the United 
States or Puerto Rico for more than one-half of the 
reference month. 
‘‘(c) PRESUMPTIVE ELIGIBILITY.— 
‘‘(1) IN
GENERAL.—An individual shall be 
treated as a specified child of a taxpayer for pur-
poses of determining any monthly advance child pay-
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