Sec. 1101. Enhancement of child tax credit and new family tax credit
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Section 24(a) is amended to read as follows: 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— with respect to each qualifying child of the taxpayer, $1,600, and for taxable years beginning before January 1, 2023, with respect to the taxpayer (each spouse in the case of a joint return) and each dependent of the taxpayer to whom paragraph
(1)does not apply, $300. . Section 24(c) is amended— by redesignating paragraphs
(1)and
(2)as paragraphs
(2)and (3), respectively, by striking 152(c) in paragraph
(2)(as so redesignated) and inserting 7706(c) , by inserting before paragraph
(2)(as so redesignated) the following new paragraph: The term dependent shall have the meaning given such term by section 7706. In the case of an individual with respect to whom a credit under this section is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, the amount applicable to such individual under subsection
(a)for such individual’s taxable year shall be zero. , in paragraph
(3)(as so redesignated)— by striking term and inserting qualifying child terms , and qualifying child and dependent by striking 152(b)(3) and inserting 7706(b)(3) , and in the heading by striking and inserting Qualifying . Dependent; qualifying The heading for section 24 is amended by inserting after and family . Child The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 24 and inserting the following new item: Sec. 24. Child and family tax credit. . Section 24(b)(2) is amended— by striking $110,000 in subparagraph
(A)and inserting $230,000 , by inserting and at the end of subparagraph (A), by striking $75,000 in the case of an individual who is not married and all that follows through the period at the end and inserting one-half of the amount in effect under subparagraph
(A)for the taxable year in the case of any other individual. . Section 24(d)(1)(A) is amended by striking all that follows under this section and inserting the following: determined— without regard to this subsection and the limitation under section 26(a), without regard to subsection (a)(2), and by substituting $1,000 for $1,600 in subsection (a)(1), or . Section 24(d) is amended by inserting after paragraph
(2)the following new paragraph: In the case of any taxable year beginning in a calendar year after 2017, the $1,000 amount in paragraph (1)(A)(iii) shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment under section 1(c)(2)(A) for such calendar year. Any increase determined under the preceding sentence shall be rounded to the next highest multiple of $100 and shall not exceed the amount in effect under subsection (a)(2). . The amendments made by this section shall apply to taxable years beginning after December 31, 2017.