Section 1 Short title
This Act may be cited as the “Family Income Supplemental Credit Act” or the “FISC Act”.
Family Income Supplemental Credit Act
A BILL
To provide monthly payments for eligible pregnant women and parents to improve the ability of families to provide for their children and other family members, and for other purposes.
Sec. 2 Family income supplements
Applications—
In general—
Qualified pregnant woman— A pregnant woman may apply to the Commissioner of Social Security (in this section referred to as the “Commissioner”) for monthly payments under this section with respect to the pregnancy.
Qualified caregiver— A qualified caregiver of an eligible child may apply to the Commissioner for monthly payments under this section with respect to the eligible child.
Contents— The application shall contain the following:
Pregnant woman—
In general— An application submitted pursuant to paragraph (1)(A) shall contain—
the name, residential address, and social security account or tax identification number of the applicant;
the expected due date of the birth;
the name and address of the person who is providing pre-natal care with respect to the pregnancy;
a specification of the income of the applicant for the then most recently ended taxable year of the applicant; and
a statement as to whether the applicant is married.
Beginning of pregnancy— For purposes of this section, the date a pregnancy began shall be determined on the basis commonly used by licensed physicians.
Qualified caregiver— An application submitted pursuant to paragraph (1)(B) shall contain—
the name and residential address of the child and of each qualified caregiver of the child;
the age of the child;
the social security account or tax identification number of the child;
the social security account number or tax identification number of each qualified caregiver of the child;
a specification of the income of the applicant for the then most recently ended taxable year of the applicant; and
a statement as to whether the applicant is married.
Definitions— In this section:
Eligible child— The term “eligible child” means an individual who—
has not attained 18 years of age;
has provided not more than half of their own financial support during the most recent taxable year of the child; and
is a citizen or national of the United States, or a permanent resident alien.
Qualified caregiver—
In general— The term “qualified caregiver” means, with respect to a child, an individual who—
has attained 18 years of age;
resides with the child; and
provides economic support for the child.
Fraud disqualification— Notwithstanding subparagraph (A), the term “qualified caregiver” does not include an individual if—
the Commissioner, after notice and an opportunity for hearing, finds that the individual committed fraud in relation to the program under this section; and
the finding has not been reversed or vacated by a court of law.
Entitlement— On approval by the Commissioner of an application submitted pursuant to subsection (a), the applicant shall become a beneficiary entitled to monthly payments under this section—
for the calendar month in which the application is so submitted and each subsequent calendar month, if at any time in the month the beneficiary is a pregnant woman whose pregnancy has lasted for at least 20 weeks; and
for each calendar month after the calendar month in which an eligible child is born, in which the beneficiary is a qualified caregiver of the eligible child.
Amount of monthly payment—
In general—
With respect to a pregnancy— The amount of the monthly payment to a beneficiary under this section with respect to a pregnancy shall be $800.
With respect to an eligible child— The amount of the monthly payment to a beneficiary under this section with respect to each eligible child shall be—
$400, if the child has not attained 6 years of age; or
$250, if the child has attained 6 years of age.
Marriage bonus— The total amount of the monthly payment to a beneficiary under paragraph (1) shall be increased by 20 percent if the beneficiary is—
a married pregnant woman; or
married to a qualified caregiver of an eligible child of the beneficiary.
Phase-out— The total amount of the monthly payment to a beneficiary under the preceding provisions of this subsection shall be decreased (but not below zero) by $16.67 for each whole $1,000 by which—
the adjusted gross income of the beneficiary for the then most recently ended taxable year of the beneficiary exceeds $125,000; or
if the beneficiary and the spouse of the beneficiary filed a joint return of Federal income tax for that taxable year, the total adjusted gross income of the beneficiary and the spouse of the beneficiary for the taxable year exceeds $250,000.
Limitation— The total amount of the monthly payment to a beneficiary under the preceding provisions of this subsection shall not exceed 1/12 of the total adjusted gross income of the beneficiary and the spouse (if any) of the beneficiary for the then most recently ended taxable year of the beneficiary.
Recipient of payment— The Commissioner may make payments under the preceding provisions of this section with respect to an eligible child to only 1 qualified caregiver of the eligible child.
Provisional continuation of benefits for limited period in certain cases— In the case of a beneficiary under this section with respect to a pregnancy that results in the birth of a child—
the entitlement of the beneficiary with respect to the pregnancy is deemed to be converted into an entitlement to benefits under this section with respect to the child, subject to the submission by a qualified caregiver of the child, within 90 days after the birth, of an application pursuant to subsection (a)(1)(B) and the approval by the Commissioner of the application; and
the Commissioner—
shall ensure that benefit payments under this section to a qualified caregiver of the child are not interrupted during that 90-day period; and
may not seek to recover any benefit payment made under this section to a qualified caregiver of the child on account of the entitlement with respect to the child, if such a qualified caregiver does not submit such an application within that 90-day period or an application so submitted is disapproved.
Administrative provisions—
Bureau of Family Statistics— There is established in the Social Security Administration the Bureau of Family Statistics (in this section referred to as the “Bureau”).
Duties— The Bureau shall gather and provide to the Commissioner such statistical purpose (as defined in section 3561 of title 44, United States Code) information as is necessary to enable the Commissioner to carry out this section.
Regulations—
In general— The Commissioner shall prescribe such regulations as are necessary to carry out this section.
System for reporting change in status— The Commissioner shall develop and implement a system to allow an applicant or beneficiary pursuant to this section to report a change in the marital or caregiver status of the applicant or beneficiary.
Annual reports— The Commissioner shall prepare and submit to the Congress annual reports on the activities undertaken under this section. Each such report shall, with respect to the then most recently completed calendar year—
specify the average length of time from the date the Commissioner received an application submitted pursuant to this section with respect to a pregnancy or an eligible child to the date the 1st payment is made under this section with respect to the pregnancy or the eligible child;
include recommendations to reduce the average; and
specify the total of the amounts paid under this section in the calendar year.
Appropriation— Out of any amounts in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as are necessary to carry out this section.
Effective date— This section shall take effect on the 1st day of the 1st calendar month that begins 1 year or more after the date of the enactment of this section.
Sec. 3 Repeal of child tax credit
In general— Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 24 (and by striking the item relating to such section in the table of sections for such subpart).
Conforming amendments—
Section 26(b)(2) of such Code is amended by striking subparagraph (Z).
Section 45R(f)(3)(B) of such Code is amended to read as follows:
“(B) Special rule—Any amounts paid pursuant to an agreement under section 3121(l) (relating to agreements entered into by American employers with respect to foreign affiliates) which are equivalent to the taxes referred to in subparagraph (A) shall be treated as taxes referred to in such subparagraph.”
Section 48D(d)(4) of such Code is amended—
by striking “possessions.—In the case of” and inserting the following:
“(A) In general—In the case of”
by striking “(as defined in section 24(k)”, and
by adding at the end the following new subparagraph:
“(B) Mirror code tax system—For purposes of this paragraph, 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.”
Section 152(f)(6)(B) of such Code is amended by striking clause (ii).
The second sentence of section 501(c)(26) of such Code is amended—
by striking “(as defined in section 24(c))”, and
by adding at the end the following: “For purposes of the preceding sentence, the term “qualifying child” has the meaning given such term by section 152(c), except such term shall not include any individual who has attained the age of 17 or who would not be a dependent if subparagraph (A) of section 152(b)(3) were applied without regard to all that follows “resident of the United States”.”.
Section 3402(f)(1) of such Code is amended by striking subparagraph (C).
Section 6402(m) of such Code is amended by striking “section 24 (by reason of subsection (d) thereof) or”.
Section 6211(b)(4)(A) of such Code is amended by striking “24 by reason of subsections (d) and (i)(1) thereof,”.
Section 6417(f) of such Code is amended by striking “(as defined in section 24(k))” and inserting “(as defined in section 48D(d)(4)(B))”.
Chapter 77 of such Code is amended by striking section 7527A (and by striking the item relating to such section in the table of sections for such chapter).
Section 6211(b)(4)(A) of such Code is amended by striking “7527A,”.
Section 6213(g)(2) of such Code is amended by striking subparagraphs (I) and (P).
Section 6695(g)(2) of such Code is amended by striking “24,”.
Section 1324(b)(2) of title 31, United States Code, is amended by striking “, 24”.
Effective date—
In general— The amendments made by this section shall apply to taxable years beginning after the first taxable year during which the 1st calendar month described in section 2(l) begins.
Transition rule— In the case of any such first taxable year which does not begin with such 1st calendar month, the credit otherwise determined under section 24 of the Internal Revenue Code of 1986 shall be reduced to an amount which bears the same ratio to the amount of such credit (determined without regard to this paragraph) as—
the number of calendar months ending during such taxable year before such 1st calendar month, bears to
12.