S. 2490 - Child Tax Credit Extension Act

116TH CONGRESS
1ST SESSION

S. 2490

To amend the Internal Revenue Code of 1986 to make permanent
certain changes made by Public Law 115-97 to the child tax credit.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 17, 2019

Ms. MCSALLY (for herself, Ms. ERNST, Mr. BRAUN, and Mr. SCOTT
of Florida) introduced the following bill; which was read twice
and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to make permanent certain changes made by Public Law 115-97 to the child tax credit.

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 "Child Tax Credit Extension Act".

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

(a) INCREASE IN CREDIT AMOUNT. — Section 24(a) of the Internal Revenue Code of 1986 is amended by striking "$1,000" and inserting "$2,000".

(b) LIMITATION. — Paragraph (2) of section 24(b) of the Internal Revenue Code of 1986 is amended to read as follows:

"(2) THRESHOLD AMOUNT. — For purposes of paragraph (1), the term 'threshold amount' means —

"(A) $400,000 in the case of a joint return, and

"(B) $200,000 in any other case.".

(c) PARTIAL CREDIT ALLOWED FOR CERTAIN OTHER DEPENDENTS. — Subsection (h) of section 24 of the Internal Revenue Code of 1986 is amended to read as follows:

"(h) PARTIAL CREDIT ALLOWED FOR CERTAIN OTHER DEPENDENTS. —

"(1) IN GENERAL. — The credit determined under subsection (a) shall be increased by $500 for each dependent of the taxpayer (as defined in section 7706) other than a qualifying child described in subsection (c).

"(2) EXCEPTION FOR CERTAIN NONCITIZENS. — Paragraph (1) shall not apply with respect to any individual who would not be a dependent if subparagraph (A) of section 7706(b)(3) were applied without regard to all that follows 'resident of the United States'.

"(3) CERTAIN QUALIFYING CHILDREN. — In the case of any qualifying child with respect to whom a credit is not allowed under this section by reason of subsection (e)(1), such child shall be treated as a dependent to whom subparagraph (A) applies.".

(d) MAXIMUM AMOUNT OF REFUNDABLE CREDIT. — Subsection (d) of section 24 of the Internal Revenue Code of 1986 is amended by inserting after paragraph (3) the following new paragraph:

"(4) LIMITATION. —

"(A) IN GENERAL. — The amount determined under paragraph (1)(A) with respect to any qualifying child shall not exceed $1,400, and such paragraph shall be applied without regard to subsection (h).

"(B) ADJUSTMENT FOR INFLATION. — In the case of a taxable year beginning after 2018, the $1,400 amount in subparagraph (A) 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.

If any increase under this clause is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.".

(e) EARNED INCOME THRESHOLD FOR REFUNDABLE CREDIT. — Section 24(d)(1)(B) of the Internal Revenue Code of 1986 is amended by striking "$3,000" and inserting "$2,500".

(f) SOCIAL SECURITY NUMBER REQUIRED. — Paragraph (1) of section 24(e) of the Internal Revenue Code of 1986 is amended to read as follows:

"(1) QUALIFYING CHILD SOCIAL SECURITY NUMBER REQUIREMENT. — No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes the name and social security number of such child on the return of tax for the taxable year. For purposes of the preceding sentence, the term 'social security number' means 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) before the due date for such return.".

(g) EFFECTIVE DATE. — The amendments made by this section shall take effect as if included in the enactment of section 11022 of Public Law 115-97.