Title: To amend the Internal Revenue Code of 1986 to make permanent the increase in the standard deduction, the increase in and modifications of the child tax credit, and the repeal of the deduction for personal exemptions contained in Public Law 115-97.
Policy area: Taxation

Summary:
This bill makes permanent several tax provisions that were enacted in 2017 and are scheduled to expire at the end of 2025. The provisions that are made permanent increase the standard deduction, increase and modify the child tax credit, and eliminate the deduction for personal exemptions.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 22 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                 H. R. 22

   To amend the Internal Revenue Code of 1986 to make permanent the 
 increase in the standard deduction, the increase in and modifications 
 of the child tax credit, and the repeal of the deduction for personal 
               exemptions contained in Public Law 115-97.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2019

  Mr. Brady 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 make permanent the 
 increase in the standard deduction, the increase in and modifications 
 of the child tax credit, and the repeal of the deduction for personal 
               exemptions contained in Public Law 115-97.

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

SECTION 1. INCREASE IN STANDARD DEDUCTION.

    (a) In General.--Section 63(c)(2) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``$4,400'' in subparagraph (B) and 
        inserting ``$18,000''; and
            (2) by striking ``$3,000'' in subparagraph (C) and 
        inserting ``$12,000''.
    (b) Inflation Adjustment.--Section 63(c)(4) of such Code is amended 
to read as follows:
            ``(4) Adjustments for inflation.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2018, each dollar amount in paragraph 
                (2)(B), (2)(C), or (5) or subsection (f) shall be 
                increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting for `2016' in 
                        subparagraph (A)(ii) thereof--
                                    ``(I) in the case of the dollar 
                                amounts contained in paragraph (2)(B) 
                                or (2)(C), `2017',
                                    ``(II) in the case of the dollar 
                                amounts contained in paragraph (5)(A) 
                                or subsection (f), `1987', and
                                    ``(III) in the case of the dollar 
                                amount contained in paragraph (5)(B), 
                                `1997'.
                    ``(B) Rounding.--If any increase under subparagraph 
                (A) is not a multiple of $50, such increase shall be 
                rounded to the next lowest multiple of $50.''.
    (c) Conforming Amendments.--
            (1) Section 1(f)(7)(A) of such Code is amended by striking 
        ``section 63(c)(4),''.
            (2) Section 1(f)(7)(B) of such Code is amended by striking 
        ``sections 63(c)(4) and'' and inserting ``section''.
            (3) Section 63(c) of such Code is amended by striking 
        paragraph (7).
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

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

    (a) In General.--Section 24 of the Internal Revenue Code of 1986 is 
amended by striking subsections (a), (b), and (c) and inserting the 
following new subsections:
    ``(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 qualifying dependent (other than a 
        qualifying child) of the taxpayer.
    ``(b) Limitation Based on Adjusted Gross Income.--The amount of the 
credit allowable under subsection (a) shall be reduced (but not below 
zero) by $50 for each $1,000 (or fraction thereof) by which the 
taxpayer's modified adjusted gross income exceeds $400,000 in the case 
of a joint return ($200,000 in any other case). For purposes of the 
preceding sentence, the term `modified adjusted gross income' means 
adjusted gross income increased by any amount excluded from gross 
income under section 911, 931, or 933.
    ``(c) Qualifying Child; Qualifying Dependent.--For purposes of this 
section--
            ``(1) Qualifying child.--The term `qualifying child' means 
        any qualifying dependent of the taxpayer--
                    ``(A) who is a qualifying child (as defined in 
                section 7706(c)) of the taxpayer,
                    ``(B) who has not attained age 17 at the close of 
                the calendar year in which the taxable year of the 
                taxpayer begins, and
                    ``(C) whose name and social security number are 
                included on the taxpayer's return of tax for the 
                taxable year.
            ``(2) Qualifying dependent.--The term `qualifying 
        dependent' means any dependent of the taxpayer (as defined in 
        section 7706 without regard to all that follows `resident of 
        the United States' in section 7706(b)(3)(A)) whose name and TIN 
        are included on the taxpayer's return of tax for the taxable 
        year.
            ``(3) Social security number defined.--For purposes of this 
        subsection, the term `social security number' means, with 
        respect to a return of tax, a social security number issued to 
        an individual by the Social Security Administration, but only 
        if the social security number is issued--
                    ``(A) 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
                    ``(B) on or before the due date of filing such 
                return.''.
    (b) Portion of Credit Refundable.--
            (1) In general.--Section 24(d)(1)(A) of the Internal 
        Revenue Code of 1986 is amended to read as follows:
                    ``(A) the credit which would be allowed under this 
                section 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), or''.
            (2) Modification of limitation based on earned income.--
        Section 24(d)(1)(B)(i) of such Code is amended by striking 
        ``$3,000'' and inserting ``$2,500''.
            (3) Inflation adjustment.--Section 24(d) of such Code is 
        amended by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Adjustment for inflation.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2018, the $1,400 amount in paragraph 
                (1)(A)(i) shall be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) 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.
                    ``(B) Rounding.--If any increase under subparagraph 
                (A) is not a multiple of $100, such increase shall be 
                rounded to the next lowest multiple of $100.
                    ``(C) Limitation.--The amount of any increase under 
                subparagraph (A) (after the application of subparagraph 
                (B)) shall not exceed $600.''.
            (4) Conforming amendments.--
                    (A) Section 24(e) of such Code is amended to read 
                as follows:
    ``(e) Taxpayer Identification Requirement.--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 of tax for the 
taxable year.''.
                    (B) Section 24 of such Code is amended by striking 
                subsection (h).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

SEC. 3. ELIMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS.

    (a) In General.--Section 151(d)(5) of the Internal Revenue Code of 
1986 is amended by striking ``, and before January 1, 2026''.
    (b) Conforming Amendments.--
            (1) Section 152(d)(1)(B) is amended by inserting after 
        ``section 151(d))'' the following: ``or, in the case of a 
        taxable year for which the exemption amount is zero, the dollar 
        amount in effect for the taxable year under section 
        6334(d)(4)(B)''.
            (2) The heading of section 151(d)(5) of such Code is 
        amended by striking ``2018 through 2025'' and inserting ``after 
        2017''.
            (3) The second sentence of section 6334(d)(4)(C) is amended 
        by striking ``$100'' each place it appears and inserting 
        ``$50''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.
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