SEC. 2. REFUNDABLE CREDIT FOR HOUSEHOLD ITEMS 
PURCHASED 
BY 
GRANDPARENTS 
FOR 
GRANDCHILDREN LIVING IN POVERTY. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable credits) is amended by insert-
ing after section 36B the following new section: 
‘‘SEC. 36C. CREDIT FOR HOUSEHOLD ITEMS PURCHASED BY 
GRANDPARENTS FOR GRANDCHILDREN LIV-
ING IN POVERTY. 
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, there shall be allowed as a credit against the tax 
imposed by this subtitle an amount equal to the amount 
paid or incurred by the taxpayer during the taxable year 
for household items for the benefit of any qualified child. 
‘‘(b) MAXIMUM CREDIT.—The credit allowed by this 
section for the taxable year shall not exceed $500. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
individual’ means, with respect to any child, any in-
dividual who is a grandparent of such child. 
‘‘(2) HOUSEHOLD ITEMS.—The term ‘household 
items’ includes food, clothing, and other items typi-
cally used by or for the benefit of children. 
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‘‘(3) QUALIFIED CHILD.—The term ‘qualified 
child’ means any individual if— 
‘‘(A) such individual has not attained the 
age of 18 as of the close of the calendar year 
in which the taxable year of the taxpayer be-
gins, 
‘‘(B) for more than one-half of such tax-
able year, such individual has the same prin-
cipal place of abode as— 
‘‘(i) the taxpayer, and 
‘‘(ii) at least 1 parent of such child, 
‘‘(C) such parent is entitled to claim, and 
claims, a deduction for such child under section 
151 (relating to allowance of deductions for 
personal exemptions), 
‘‘(D) the modified adjusted gross income 
(as defined in section 24(b)) of such parent (or 
parents in the case of a joint return) does not 
exceed 300 percent of the Federal poverty level 
(as determined in accordance with criteria es-
tablished by the Director of the Office of Man-
agement and Budget), and 
‘‘(E) such place of abode is in the United 
States. 
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‘‘(4) GRANDPARENTS.—An older individual 
shall be treated as a grandparent of another indi-
vidual only if such individual is— 
‘‘(A) a biological descendant of the older 
individual, or 
‘‘(B) an adopted child (within the meaning 
of section 152(f)(1)(B)) of a biological descend-
ant of the older individual. 
‘‘(d) IDENTIFICATION REQUIREMENTS.— 
‘‘(1) IN GENERAL.—A qualifying child shall not 
be taken into account under this section unless the 
taxpayer includes the name, age, and TIN of the 
qualifying child on the return of tax for the taxable 
year. 
‘‘(2) OTHER
METHODS.—The Secretary may 
prescribe other methods for providing the informa-
tion described in paragraph (1).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 
(2) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting 
‘‘36C,’’ after ‘‘36B,’’. 
(3) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
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enue Code of 1986 is amended by inserting after the 
item relating to section 36C the following new item: 
‘‘Sec. 36C. Credit for household items purchased by grandparents for grand-
children living in poverty.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
Æ 
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