US Codex
Bill
Notes

Division E — Anti-poverty Tax Provision

H.R. 2721 · 114th Congress · Jun 10, 2015 · Lineage

E Anti-poverty Tax Provision

XVI Child Tax Credit Permanency

Sec. 1601 Modifications of the child tax credit

(a)
Permanent extension—
(1)
In general— Clause (i) of section 24(d)(1)(B) of the Internal Revenue Code of 1986 is amended by striking “$10,000” and inserting “$3,000”.
(2)
Conforming amendments— Section 24(d) of such Code is amended by striking paragraphs (3) and (4).
(b)
Inflation adjustment— Section 24 of such Code is amended by adding at the end the following new subsection:

“(g) Inflation adjustment—In the case of any taxable year beginning in a calendar year after 2015, the $1,000 amount contained in subsection (a) shall be increased by an amount equal to—

“(1) such dollar amount, multiplied by

“(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2014” for “calendar year 1992” in subparagraph (B) thereof.”

(c)
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2015.

XVII Earned Income Tax Credit

Sec. 1701 Expansion of Earned Income Credit

(a)
Credit percentages for individuals with no qualifying children— The item in the table in section 32(b)(1) of the Internal Revenue Code of 1986 under the column relating to the credit percentage is amended by striking “7.65” and inserting “15.3”.
(b)
Phaseout percentage for individuals with no qualifying children— The item in the table in section 32(b)(1) of the Internal Revenue Code of 1986 under the column relating to the phaseout percentage is amended by striking “7.65” and inserting “15.3”.
(c)
Phaseout amount—
(1)
In general— The item in the table in section 32(b)(2)(A) of the Internal Revenue Code of 1986 under the column relating to the phaseout amount is amended by striking “$5,280” and inserting “$11,500”.
(2)
Inflation adjustment—
(A)
In general— Section 32(j) of the Internal Revenue Code of 1986 is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph:

“(2) Exception—In the case of the amount in subsection (b)(2)(A) under the column relating to the phaseout amount for taxable years beginning after 2016, paragraph (1)(B)(i) shall be applied by substituting “calendar year 2015” for “calendar year 1995” and paragraph (1) shall not apply to such amount for taxable years beginning in 2016.”

(B)
Conforming amendments— Section 32(j) of the Internal Revenue Code of 1986 is amended—
(i)
in paragraph (1)(B)(i) by inserting “except as provided in paragraph (2)” before “in the case of”, and
(ii)
in paragraph (2)(A) by inserting “or (2)” after “paragraph (1)”.
(d)
Expansion of age range of eligible individuals— Section 32(c)(1)(A)(ii)(II) of the Internal Revenue Code of 1986 is amended by striking “age 25 but not attained age 65” and inserting “age 21 but not attained retirement age (as defined in section 216(l) of the Social Security Act)”.
(e)
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2015.

XVIII Child Care Access and Refundability Expansion Act

Sec. 1801 Credit for dependent care expenses

(a)
Credit made refundable—
(1)
In general— The Internal Revenue Code of 1986 is amended by redesignating section 21 as section 36C and by moving such section after section 36B.
(2)
Credit not allowed to nonresident aliens— Section 36C(a)(1) of the Internal Revenue Code of 1986, as redesignated by this section, is amended by inserting “(other than a nonresident alien)” after “In the case of an individual”.
(3)
Conforming amendments—
(A)
Section 23(f)(1) of such Code is amended by striking “section 21(e)” and inserting “section 36C(e)”.
(B)
Section 35(g)(6) of such Code is amended by striking “section 21(e)” and inserting “section 36C(e)”.
(C)
Section 36C(a)(1) of such Code, as redesignated by this section, is amended by striking “this chapter” and inserting “this subtitle”.
(D)
Section 129(a)(2)(C) of such Code is amended by striking “section 21(e)” and inserting “section 36C(e)”.
(E)
Section 129(b)(2) of such Code is amended by striking “section 21(d)(2)” and inserting “section 36C(d)(2)”.
(F)
Section 129(e)(1) of such Code is amended by striking “section 21(b)(2)” and inserting “section 36C(b)(2)”.
(G)
Section 213(e) of such Code is amended by striking “section 21” and inserting “section 36C”.
(H)
Section 6211(b)(4)(A) of such Code is amended by inserting “36C,” after “36B,”.
(I)
Section 6213(g)(2)(H) of such Code is amended by striking “section 21” and inserting “section 36C”.
(J)
Section 6213(g)(2)(L) of such Code is amended by striking “section 21, 24, 32, or 6428 ” and inserting “section 24, 32, 36C, or 6428”.
(K)
Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting “36C,” after “36B,”.
(L)
The table of sections for subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking the item relating to section 21.
(M)
The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36B the following new item:
(b)
Inflation adjustment of income thresholds for credit phasedown— Section 36C(e) of the Internal Revenue Code of 1986, as redesignated by this section, is amended by adding at the end the following new paragraph:

“(11) Inflation adjustment

“(A) In general—In the case of any taxable year beginning in a calendar year after 2015, the $2,000 amount and the $15,000 amount in subsection (a)(2) shall each 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 “calendar year 2014” for “calendar year 1992” in subparagraph (B) thereof.

“(B) Rounding—Any increase determined under subparagraph (A) shall be rounded to the nearest multiple of—

“(i) in the case of the $2,000 amount, $50, and

“(ii) in the case of the $15,000 amount, $100.”

(c)
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2015.