Title: Grandparents Tax Credit Act of 2017
Policy area: Taxation

Summary:
Grandparents Tax Credit Act of 2017
This bill amends the Internal Revenue Code to allow a grandparent a refundable tax credit for up to $500 of the cost of household items (food, clothing, and other items typically used by or for the benefit of children) purchased for the benefit of a grandchild who is under the age of 18 if, for more than half of the year, the child lives with the grandparent and at least one parent whose adjusted gross income does not exceed 300% of the federal poverty level.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3796 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3796

To amend the Internal Revenue Code of 1986 to assist in the support of 
     children living in poverty by allowing a refundable credit to 
grandparents of those children for the purchase of household items for 
         the benefit of those children, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 2017

  Mr. Veasey introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to assist in the support of 
     children living in poverty by allowing a refundable credit to 
grandparents of those children for the purchase of household items for 
         the benefit of those children, and for other purposes.

    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 ``Grandparents Tax Credit Act of 
2017''.

SEC. 2. REFUNDABLE CREDIT FOR HOUSEHOLD ITEMS PURCHASED BY GRANDPARENTS 
              FOR GRANDCHILDREN LIVING IN POVERTY.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by inserting after section 36B the following new section:

``SEC. 36C. CREDIT FOR HOUSEHOLD ITEMS PURCHASED BY GRANDPARENTS FOR 
              GRANDCHILDREN LIVING IN POVERTY.

    ``(a) In General.--In the case of an eligible individual, 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 purposes of this 
section--
            ``(1) Eligible individual.--The term `eligible individual' 
        means, with respect to any child, any individual who is a 
        grandparent of such child.
            ``(2) Household items.--The term `household items' includes 
        food, clothing, and other items typically used by or for the 
        benefit of children.
            ``(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 begins,
                    ``(B) for more than one-half of such taxable year, 
                such individual has the same principal 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 established by the Director of 
                the Office of Management and Budget), and
                    ``(E) such place of abode is in the United States.
            ``(4) Grandparents.--An older individual shall be treated 
        as a grandparent of another individual 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 descendant 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 information 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 Revenue 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 
                            grandchildren living in poverty.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.
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