such child may release such deduction to the non-
custodial parent.
‘‘(2) PROCEDURE.—The noncustodial parent
may claim a child described in paragraph (1) as a
dependent for the taxable year if—
‘‘(A) the custodial parent signs a written
declaration (in such manner and form as the
Secretary may by regulations prescribe) that
such custodial parent will not claim such child
as a dependent for any taxable year beginning
in such calendar year,
‘‘(B) the custodial parent and the non-
custodial parent provide over half of such
child’s support for the calendar year in which
the taxable years of such parents begin, and
‘‘(C) the noncustodial parent attaches such
written declaration to such noncustodial par-
ent’s return for the taxable year beginning dur-
ing such calendar year.
‘‘(3) DEFINITIONS.—For purposes of this
subsection—
‘‘(A) CUSTODIAL PARENT.—The term ‘cus-
todial parent’ means, with regard to an indi-
vidual, a parent who has custody of such indi-
vidual for a greater portion of the calendar year
than the noncustodial parent.
‘‘(B) NONCUSTODIAL PARENT.—The term
‘noncustodial parent’ means the parent who is
not the custodial parent.’’.
(2) 
PRE-1985
INSTRUMENTS.—Section
152(e)(4)(A) of such Code is amended by striking
‘‘A child’’ and all that follows through ‘‘noncustodial
parent’’ and inserting ‘‘A noncustodial parent de-
scribed in paragraph (1) shall be entitled to the de-
duction under section 151 for a taxable year with re-
spect to a child if’’.
(f) CONFORMING AMENDMENTS.—
(1) Section 1(g)(5)(A) of the Internal Revenue
Code of 1986 is amended by inserting ‘‘as in effect
on the day before the date of the enactment of the
Tax Relief for Working Families Act of 2000’’ after
‘‘152(e)’’.
(2) Section 2(b)(1)(A)(i) of such Code is
amended by striking ‘‘paragraph (2) or (4) of’’.
(3) Section 2(b)(3)(B)(i) of such Code is
amended by striking ‘‘paragraph (9)’’ and inserting
‘‘paragraph (2)(G)’’.
(4) Section 21(e)(5)(A) of such Code is amend-
ed by striking ‘‘paragraph (2) or (4) of’’.
(5) Section 21(e)(5) of such Code is amended
in the matter following subclause (B) by inserting
‘‘as in effect on the day before the date of the enact-
ment of the Tax Relief for Working Families Act of
2000’’ after ‘‘152(e)(1)’’.
(6) Section 32(c)(1)(G) of such Code is amend-
ed by striking ‘‘(3)(D).’’ and inserting ‘‘(1)(C). An
individual whose qualifying child or qualifying chil-
dren are not taken into account under subsection (b)
solely by reason of paragraph (3)(D) shall be treated
as an eligible individual if such individual otherwise
meets the requirements of subparagraph (A)(ii).’’.
(7) Section 32(c)(3)(B)(ii) of such Code is
amended by striking ‘‘paragraph (2) or (4) of’’.
(8) Section 51(i)(1)(C) of such Code is amend-
ed 
by 
striking 
‘‘152(a)(9)’’ 
and 
inserting
‘‘152(a)(2)(G)’’.
(9) Section 152(b) of such Code is amended by
striking ‘‘specified in subsection (a)’’ and inserting
‘‘specified in subsection (a)(2) or (f)(2)’’.
(10) Section 152(c) of such Code is amended by
striking ‘‘(a)’’ and inserting ‘‘(a)(1)’’.
(11) Section 7703(b)(1) of such Code is amend-
ed by striking ‘‘paragraph (2) or (4) of’’.
(12) The following provisions of such Code are
each amended by striking ‘‘paragraphs (1) through
(8) of section 152(a)’’ and inserting ‘‘subparagraphs
(A) through (F) of subsection (a)(2) or subsection
(f)(2) of section 152’’:
(A) Section 170(g)(3).
(B) Subparagraphs (A) and (B) of section
51(i)(1).
(C) The second sentence of section
213(d)(11).
(D) Section 529(e)(2)(B).
(E) Section 7702B(f)(2)(C)(iii).
(g) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 5. OTHER MODIFICATIONS TO EARNED INCOME TAX
CREDIT.
(a) MODIFICATION
OF JOINT RETURN REQUIRE-
MENT.—Subsection (d) of section 32 of the Internal Rev-
enue Code of 1986 is amended to read as follows:
‘‘(d) MARRIED INDIVIDUALS.—
‘‘(1) IN GENERAL.—If the taxpayer is married
at the close of the taxable year, the credit shall be
allowed under subsection (a) only if the taxpayer
and his spouse file a joint return for the taxable
year.
‘‘(2) MARITAL STATUS.—For purposes of para-
graph (1), an individual legally separated from his
spouse under a decree of divorce or of separate
maintenance shall not be considered as married.
‘‘(3) CERTAIN
MARRIED
INDIVIDUALS
LIVING
APART.—For purposes of paragraph (1), if—
‘‘(A) an individual —
‘‘(i) is married and files a separate re-
turn, and
‘‘(ii) has a qualifying child who is a
son, daughter, stepson, or stepdaughter of
such individual, and
‘‘(B) during the last 6 months of such tax-
able year, such individual and such individual’s
spouse do not have the same principal place of
abode,
such individual shall not be considered as married.’’
(b) MODIFICATION OF RULE WHERE THERE ARE 2
OR MORE ELIGIBLE INDIVIDUALS.—Subparagraph (C) of
section 32(c)(1) of such Code is amended to read as fol-
lows:
‘‘(C) 2 OR MORE ELIGIBLE INDIVIDUALS.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), if 2 or more individuals
would (but for this subparagraph and after
application of subparagraph (B)) be treat-
ed as eligible individuals with respect to
the same qualifying child for taxable years
beginning in the same calendar year, only
the individual with the highest modified
adjusted gross income for such taxable
years shall be treated as an eligible indi-
vidual with respect to such qualifying
child.
‘‘(ii) EXCEPTION FOR CERTAIN PAR-
ENTS.—An otherwise eligible individual
who is not treated under clause (i) as the
only eligible individual with respect to any
qualifying child shall be treated as an eligi-
ble individual with respect to such child
if—
‘‘(I) such child is the son, daugh-
ter, stepson, or stepdaughter of such
individual,
‘‘(II) such child is not taken into
account under subsection (b) by any
other individual, and
‘‘(III) the limitation under sub-
section (a)(2) for the individual who
would (but for this clause) be treated
under clause (i) as the only eligible in-
dividual with respect to such child
would be greater than zero (deter-
mined as if such individual had 2
qualifying children).’’
(c) EXPANSION OF MATHEMATICAL ERROR AUTHOR-
ITY.—Paragraph (2) of section 6213(g) of such Code is
amended by striking ‘‘and’’ at the end of subparagraph
(K), by striking the period at the end of subparagraph
(L) and inserting ‘‘, and’’, and by inserting after subpara-
graph (L) the following new subparagraph:
‘‘(M) the entry on the return claiming the
credit under section 32 with respect to a child
if, according to the Federal Case Registry of
Child Support Orders established under section
453(h) of the Social Security Act, the taxpayer
is a noncustodial parent of such child.’’
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to taxable years beginning after Decem-
ber 31, 2000.
(2) EXPANSION OF MATHEMATICAL ERROR AU-
THORITY.—The amendment made by subsection (c)
shall apply to taxable years beginning after Decem-
ber 31, 2001.
Æ