Title: Foster Opportunity EITC Act of 2019
Policy area: Taxation

Summary:
Foster Opportunity EITC Act of 2019
This bill amends the Internal Revenue Code to modify earned income tax credit provisions to increase such credit for individuals with no children and extend from 65 to 68 the age limit for such credit. It also lowers the credit eligibility age for individuals with no children and for homelesss and qualified foster youth.
The bill establishes new reporting requirements by state, local, and tribal foster care agencies for youth in foster care.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2790 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2790

  To amend the Internal Revenue Act of 1986 to strengthen the earned 
  income tax credit and expand eligibility for childless individuals, 
           homeless youth, and youth formerly in foster care.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 6, 2019

Mr. Casey (for himself and Mrs. Murray) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Act of 1986 to strengthen the earned 
  income tax credit and expand eligibility for childless individuals, 
           homeless youth, and youth formerly in foster care.

    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 ``Foster Opportunity EITC Act of 
2019''.

SEC. 2. STRENGTHENING THE EARNED INCOME TAX CREDIT.

    (a) Increased Credit for Individuals With No Qualifying Children.--
            (1) In general.--The table in subparagraph (A) of section 
        32(b)(2) of the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``$4,220'' in the second column of 
                the third row and inserting ``$10,180'', and
                    (B) by striking ``$5,280'' in the third column of 
                the third row and inserting ``$11,380''.
            (2) Inflation adjustments.--Subparagraph (B) of section 
        32(j)(1) of such Code is amended--
                    (A) in clause (i)--
                            (i) by inserting ``(except as provided in 
                        clause (iii))'' after ``(b)(2)(A)'', and
                            (ii) by striking ``and'' at the end,
                    (B) by redesignating clause (ii) as clause (iii), 
                and
                    (C) by inserting after clause (i) the following new 
                clause:
                            ``(ii) in the case of the $10,180 and 
                        $11,380 amounts in the table in subsection 
                        (b)(2)(A), `calendar year 2017' for `calendar 
                        year 1992', and''.
    (b) Credit Increase and Reduction in Phaseout for Individuals With 
No Children.--The table contained in section 32(b)(1)(A) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``7.65'' in the second column of the fourth 
        row and inserting ``20'', and
            (2) by striking ``7.65'' in the third column of the fourth 
        row and inserting ``15.98''.
    (c) Eligibility Age Limits.--
            (1) Upper age limit.--Subclause (II) of section 
        32(c)(1)(A)(ii) of the Internal Revenue Code of 1986 is amended 
        by striking ``age 65'' and inserting ``age 68''.
            (2) Lowering eligibility age for certain childless 
        individuals, homeless youth, and qualified foster youth.--
                    (A) In general.--Subclause (II) of section 
                32(c)(1)(A)(ii) of such Code, as amended by paragraph 
                (1), is further amended by striking ``age 25'' and 
                inserting ``age 19 (or, in the case of homeless youth 
                and qualified foster youth, age 18)''.
                    (B) Homeless youth and qualified foster youth.--
                Paragraph (1) of section 32(c) of such Code is amended 
                by adding at the end the following new subparagraphs:
                    ``(G) Homeless youth.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A)(ii)(II), the term `homeless 
                        youth' means--
                                    ``(I) an unaccompanied youth who 
                                has not attained age 24 and who is a 
                                homeless child or youth (as defined in 
                                section 725 of the McKinney-Vento 
                                Homeless Assistance Act), or
                                    ``(II) an individual who is 
                                determined by a specified official to 
                                be unaccompanied, at risk of 
                                homelessness, and self-supporting.
                            ``(ii) Verification.--No credit shall be 
                        allowed under this section by reason of clause 
                        (i) to any individual unless such individual 
                        attests on the return of tax for the taxable 
                        year that the individual is a homeless youth 
                        and that no other taxpayer is entitled to claim 
                        such individual as a qualifying child for 
                        purposes of this section or section 24 for the 
                        taxable year. The Secretary, in consultation 
                        with the National Taxpayer Advocate and 
                        national homeless youth advocates, shall issue 
                        regulations--
                                    ``(I) determining the information 
                                on relevant tax forms or documentation 
                                necessary to demonstrate homeless youth 
                                status in the case of an audit of the 
                                return, and
                                    ``(II) providing that a documented 
                                telephone call with or a written 
                                statement from a specified official 
                                shall be treated as sufficient to 
                                verify the status of an individual as a 
                                homeless youth.
                            ``(iii) Specified official.--For purposes 
                        of this subparagraph, the term `specified 
                        official' means--
                                    ``(I) a local educational agency 
                                homeless liaison designated pursuant to 
                                section 722(g)(1)(J)(ii) of the 
                                McKinney-Vento Homeless Assistance Act 
                                (or a designee of such liaison),
                                    ``(II) the director of an emergency 
                                or transitional shelter street outreach 
                                program, homeless youth drop-in center, 
                                or other program servicing homeless 
                                youth (or a designee of such director),
                                    ``(III) the director of a Federal 
                                TRIO program under chapter 1 of subpart 
                                2 of part A of title IV of the Higher 
                                Education Act of 1965 (20 U.S.C. 1070a-
                                11 et seq.) or a Gaining Early 
                                Awareness and Readiness for 
                                Undergraduate Program under chapter 2 
                                of subpart 2 of part A of title IV of 
                                such Act (20 U.S.C. 1070a-21 et seq.) 
                                (or a designee of such director), or
                                    ``(IV) a financial aid 
                                administrator (within the meaning of 
                                the Higher Education Act of 1965) (or a 
                                designee of such administrator).
                    ``(H) Qualified foster youth.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A)(ii)(II), the term `qualified 
                        foster youth' means an individual who was in 
                        foster care on or after the date that such 
                        individual attained age 14, if such care was 
                        under the supervision or administration of a 
                        State or tribal agency administering (or 
                        eligible to administer) a plan under part B or 
                        part E of the Social Security Act (without 
                        regard to whether Federal assistance was 
                        provided with respect to such child under such 
                        part E).
                            ``(ii) Verification.--The Secretary, in 
                        consultation with the National Taxpayer 
                        Advocate and the Children's Bureau, 
                        Administration for Children and Families, shall 
                        issue regulations determining the information 
                        on relevant tax forms providing criteria for 
                        verifying an individual as a qualified foster 
                        youth during any transition period between the 
                        date of the enactment of this subparagraph and 
                        the establishment of an operational data 
                        reporting system described in section 6050Z(a) 
                        if such individual is not listed in the 
                        verification database described in such 
                        section, or in the case of an audit of the 
                        return. The Secretary shall consider the use 
                        for such purposes of court or official State 
                        documentation, verification from entities such 
                        as a child welfare agency, case worker, Court 
                        Appointed Special Advocate, attorney, guardian 
                        ad litem, Federal TRIO program under chapter 1 
                        of subpart 2 of part A of title IV of the 
                        Higher Education Act of 1965 (20 U.S.C. 1070a-
                        11 et seq.), Gaining Early Awareness and 
                        Readiness for Undergraduate Program under 
                        chapter 2 of subpart 2 of part A of title IV of 
                        such Act (20 U.S.C. 1070a-21 et seq.), or other 
                        recognized State, county, or tribal authority, 
                        and verification through the John H. Chafee 
                        Foster Care Program for Successful Transition 
                        to Adulthood under section 477 of the Social 
                        Security Act (42 U.S.C. 677). During any 
                        transition period between the date of the 
                        enactment of this subparagraph and the 
                        establishment of an operational data reporting 
                        system described in section 6050Z(a), no credit 
                        shall be allowed under this section by reason 
                        of clause (i) to any individual unless such 
                        individual attests on the return of tax for the 
                        taxable year that the individual is a qualified 
                        foster youth and that no other taxpayer is 
                        entitled to claim such individual as a 
                        qualified child for purposes of this section or 
                        section 24 for the taxable year. In the 
                        situation that an adult can claim a qualified 
                        foster youth for purposes of this section or 
                        section 24, the Secretary shall develop a form 
                        to indicate that the adult will not claim the 
                        qualified foster youth for the taxable year.''.
                    (C) Returns relating to youth in foster care.--
                            (i) In general.--Subpart B of part III of 
                        subchapter A of chapter 61 of such Code is 
                        amended by inserting after section 6050Y the 
                        following new section:

``SEC. 6050Z. RETURNS RELATING TO YOUTH IN FOSTER CARE.

    ``(a) Requirement of Reporting.--
            ``(1) In general.--Any State, local, or tribal agency 
        providing foster care under a plan approved under part B or E 
        of title IV of the Social Security Act shall make a return, at 
        such times as the Secretary may prescribe, described in 
        subsection (b) with respect to any individual under the 
        placement and responsibility of such State, locality, or tribe 
        on or after the date that such individual attained age 14.
            ``(2) Development of data reporting system.--The Secretary, 
        in coordination with the Children's Bureau, Administration for 
        Children and Families, shall develop a data reporting system 
        which satisfies the return requirements of paragraph (1).
            ``(3) Single return.--Except as provided by the Secretary, 
        a State, local, or tribal agency described in paragraph (1) 
        which has made a return for an individual described in such 
        paragraph shall not be required to make a return for such 
        individual for any subsequent calendar year.
    ``(b) Form and Manner of Returns.--A return is described in this 
subsection if such return--
            ``(1) is in such form as the Secretary may prescribe, and
            ``(2) contains, with respect to each individual described 
        in subsection (a)(1)--
                    ``(A) the name, date of birth, and TIN of such 
                individual, and
                    ``(B) such other information as the Secretary may 
                prescribe in consultation with the Children's Bureau, 
                Administration for Children and Families.
    ``(c) Statement To Be Furnished to Individuals With Respect to Whom 
Information Is Required.--
            ``(1) In general.--Every person required to make a return 
        under subsection (a) shall furnish to each person whose name is 
        required to be set forth in such return a written statement 
        showing--
                    ``(A) the name and address of the person required 
                to make such return and the telephone number of the 
                information contact for such person, and
                    ``(B) the information required to be shown on the 
                return with respect to such individual.
            ``(2) Date.--The written statement required under paragraph 
        (1) shall be furnished on or before January 31 of the year 
        following the calendar year for which the return under 
        subsection (a) is required to be made.''.
                            (ii) Assessable penalties.--Subparagraph 
                        (B) of section 6724(d)(1) of such Code is 
                        amended--
                                    (I) by striking ``or'' at the end 
                                of clause (xxv),
                                    (II) by striking ``and'' at the end 
                                of clause (xxvi) and inserting ``or'', 
                                and
                                    (III) by inserting after clause 
                                (xxvi) the following new clause:
                            ``(xxvii) section 6050Z (relating to 
                        returns relating to youth in foster care),''.
                            (iii) Conforming amendment.--The table of 
                        sections for subpart B of part III of 
                        subchapter A of chapter 61 of such Code is 
                        amended by adding at the end the following new 
                        item:

``Sec. 6050Z. Returns relating to youth in foster care.''.
    (d) Eligibility for Working Homeless and Qualified Foster Youth Who 
Are Full-Time Students.--Subparagraph (B) of section 32(c)(1) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following: ``The preceding sentence shall not apply to--
            ``(1) a homeless youth (as defined in subparagraph (G)), or
            ``(2) a qualified foster youth (as defined in subparagraph 
        (H)),
who is a student (as defined in section 152(f)(2)) for the taxable 
year.''.
    (e) Information Return Matching.--Not later than 1 year after the 
date of the enactment of this Act, the Secretary of the Treasury (or 
the Secretary's delegate) shall develop and implement procedures for 
checking an individual's claim for the credit under section 32 of the 
Internal Revenue Code of 1986 against claims by other taxpayers for tax 
credits relating to higher education with respect to dependent college 
students.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2018.
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