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)]
<DOC>
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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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