H.R. 3300 — what changed
Economic Mobility Act of 2019
From Introduced in House to Reported in House. 4 sections amended and 1 added between Introduced in House and Reported in House.
Sec. 104 Elimination of disqualified investment income test
In general— Section 32 of the Internal Revenue Code of 1986 is amended by striking subsection (i).
Conforming amendments—
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Section 32(j)(1) of such Code is amended by striking “subsection “subsections (b)(2) and (i)(1)” and inserting “subsection (b)(2)”.
Section 32(j)(1)(B)(i) of such Code is amended by striking “subsections (b)(2)(A) and (i)(1)” and inserting “subsection (b)(2)(A)”.
Section 32(j)(2) of such Code is amended—
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by striking subparagraph (B); (B), and
by striking “Rounding.—” and all that follows through “If any dollar amount” and inserting the following: “Rounding.—If any dollar amount”.
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Sec. 202 Payments to possessions
Mirror code possession— The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the application of section 24 of the Internal Revenue Code of 1986 with respect to taxable years beginning after 2018. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.
Other possessions— The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the application of section 24 of such Code for taxable years beginning after 2018 if the provisions of such section had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession in a manner which replicates to the greatest degree practicable the benefits that would have been so provided to each such resident.
Coordination with credit allowed against United States income taxes—
In general— No credit shall be allowed against United States income taxes for any taxable year under section 24 of the Internal Revenue Code of 1986 to any person—
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to whom a credit is allowed against taxes imposed by a possession with a mirror code tax system by reason of the application of section 24 of such Code in such possession for such taxable year; year, or
who is eligible for a payment under a plan described in subsection (b) with respect to such taxable year.
Restriction on refundable credit— In the case of any person to whom a credit would be allowed against taxes imposed by a possession which does not have a mirror code tax system if the provisions of such section 24 had been in effect in such possession for the taxable year (and who is not described in paragraph (1)(B)), section 24(h)(8) of such Code (as added by this Act) shall not apply to such person for such taxable year.
Definitions and special rules—
Possession of the United States— For purposes of this section, the term “possession of the United States” includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands.
Mirror code tax system— For purposes of this section, the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.
Treatment of payments— For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from the credit allowed under section 24 of the Internal Revenue Code of 1986.
Sec. 203 Increased child tax credit for children who have not attained age 4
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In general— Section 24(h)(2) is amended to read to as follows:
added “(2) Credit amount
added “(A) In general—Except as provided in subparagraph (B), subsection (a) shall be applied by substituting “$2,000” for “$1,000”.
added “(B) Taxable years beginning in 2019 and 2020—In the case of any taxable year beginning in 2019 or 2020, subsection (a) shall be applied by substituting “$2,000 ($3,000 in the case of a qualifying child who has not attained age 4 as of the close of the calendar year in which the taxable year of the taxpayer begins)” for “$1,000”.”
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Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2018.
Sec. 301 Refundability and enhancement of child and dependent care tax credit
In general— Section 21 is amended by adding at the end the following new subsection:
“(g) Special rules for 2019 and 2020—In the case of any taxable year beginning in 2019 or 2020—
“(1) Credit made refundable—In the case of an individual other than a nonresident alien, the credit allowed under subsection (a) shall be treated as a credit allowed under subpart C (and not allowed under this subpart).
“(2) Increase in applicable percentage—Subsection (a)(2) shall be applied—
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“(A) by substituting “50 percent” for “35 percent”, percent ”, and
“(B) by substituting “$120,000” for “$15,000”.
“(3) Increase in dollar limit on amount creditable—Subsection (c) shall be applied—
“(A) by substituting “$6,000” for “$3,000” in paragraph (1) thereof, and
“(B) by substituting “twice the amount in effect under paragraph (1)” for “$6,000” in paragraph (2) thereof.
“(4) Inflation adjustment of dollar amounts—In the case of any taxable year beginning after 2019, the $120,000 amount in paragraph (2)(B) and the $6,000 amount in paragraph (3)(A) shall each be increased by an amount equal to—
“(A) such dollar amount, multiplied by
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“(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 “2018” for “2016” in subparagraph (A)(ii) thereof.”thereof.
added “(5) Income limitation
added “(A) In general—Paragraphs (1) through (4) of this subsection shall not apply to any taxpayer for any taxable year if the modified adjusted gross income of such taxpayer for such taxable year exceeds $1,000,000.
added “(B) Modified adjusted gross income—For purposes of this paragraph, the term “modified adjusted gross income” means adjusted gross income determined without regard to sections 911, 931, and 933.”
Conforming amendment— Section 1324(b)(2) of title 31, United States Code, is amended by inserting “21 (by reason of subsection (g) thereof),” before “25A”.
Coordination with possession tax systems— Section 21(g)(1) of the Internal Revenue Code of 1986 (as added by this section) shall not apply to any person—
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to whom a credit is allowed against taxes imposed by a possession with a mirror code tax system by reason of the application of section 21 of such Code in such possession for such taxable year; year, or
to whom a credit would be allowed against taxes imposed by a possession which does not have a mirror code tax system if the provisions of section 21 of such Code had been in effect in such possession for such taxable year.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2018.
Sec. 401 Repeal of inclusion of certain fringe benefit expenses in unrelated business taxable income
In general— Section 512(a) is amended by striking paragraph (7).
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Effective date— The amendment made by this subsection section shall take effect as if included in the amendments made by section 13703 of Public Law 115–97.