Permanent Tax Relief for Working Families Act
Bill: H.R.1380 | Sponsor: Rep. Smith, Jason (R-MO)
Policy area: Taxation

Summary:
Permanent Tax Relief for Working Families Act
This bill makes permanent the modifications to the child tax credit that were included in P.L. 115-97 (commonly known as the Tax Cuts and Jobs Act). (The provisions increased the amounts of the credit and created a nonrefundable credit for a taxpayer's dependents who are not qualifying children. Under current law, the provisions are scheduled to expire at the end of 2025.)

To amend the Internal Revenue Code of 1986 to make permanent certain 
       changes made by Public Law 115-97 to the child tax credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Permanent Tax Relief for Working 
Families Act''.

SEC. 2. INCREASE IN AND MODIFICATION OF CHILD TAX CREDIT.

    (a) In General.--Section 24 of the Internal Revenue Code of 1986 is 
amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Allowance of Credit.--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) $2,000 for each qualifying child of the taxpayer, and
            ``(2) $500 for each dependent of the taxpayer (as defined 
        in section 152, without regard to all that follows `resident of 
        the United States' in section 152(b)(3)(A)) other than a 
        qualifying child.'',
            (2) in subsection (b)--
                    (A) by striking ``the threshold amount'' in 
                paragraph (1) and inserting ``$400,000 in the case of a 
                joint return ($200,000 in any other case)'',
                    (B) by striking paragraph (2), and
                    (C) by striking ``Limitations'' and all that 
                follows through ``The amount'' and inserting 
                ``Limitation Based on Adjusted Gross Income.--The 
                amount'',
            (3) in subsection (d)(1)(A), by striking all that follows 
        ``under this section'' and inserting the following: 
        ``determined--
                            ``(i) by substituting `$1,400' for `$2,000' 
                        in subsection (a)(1),
                            ``(ii) without regard to subsection (a)(2), 
                        and
                            ``(iii) without regard to this subsection 
                        and the limitation under section 26(a).'',
            (4) in subsection (d)(1)(B)(i), by striking ``$3,000'' and 
        inserting ``$2,500'',
            (5) by inserting after subsection (d)(2) the following new 
        paragraph:
            ``(3) Adjustment for inflation.--In the case of a taxable 
        year beginning after 2018, the $1,400 amount in paragraph 
        (1)(A) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `2017' for `2016' in subparagraph (A)(ii) thereof.
        If any increase under this paragraph is not a multiple of $100, 
        such increase shall be rounded to the next lowest multiple of 
        $100.'',
            (6) by amending subsection (e) to read as follows:
    ``(e) Identification Requirements.--
            ``(1) Taxpayer.--No credit shall be allowed under this 
        section if the identifying number of the taxpayer was issued 
        after the due date for filing the return for the taxable year.
            ``(2) Qualifying child.--
                    ``(A) In general.--No credit shall be allowed under 
                this section to a taxpayer with respect to any 
                qualifying child unless the taxpayer includes the 
                social security number of such child on the return of 
                tax for the taxable year.
                    ``(B) Social security number defined.--For purposes 
                of this subsection, the term `social security number' 
                means a social security number issued to an individual 
                by the Social Security Administration, but only if the 
                social security number is issued--
                            ``(i) 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, and
                            ``(ii) before the due date for such return.
                    ``(C) Treatment of qualifying children disallowed 
                credit.--In the case of any qualifying child with 
                respect to whom a credit is not allowed under this 
                section by reason of subparagraph (A), such child shall 
                be treated as a dependent to whom subsection (a)(2) 
                applies.'', and
            (7) by striking subsection (h).
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 11022 of Public Law 
115-97.
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