Sec. 202. Establishment of fully refundable child tax credit
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The Internal Revenue Code of 1986 is amended— by redesignating section 24 as section 36C; and by moving section 36C (as so redesignated) from subpart A of part IV of subchapter A of chapter 1 to the location immediately before section 37 in subpart C of part IV of subchapter A of chapter 1. Section 36C of such Code, as redesignated by subsection (a), is amended by striking subsection (d). The table of sections for subpart A of part IV of subchapter A of chapter 1 of subtitle A of such Code is amended by striking the item relating to section 24.
The table of sections for subpart C of part IV of subchapter A of chapter 1 of subtitle A of such Code is amended by inserting after the item relating to section 36B the following: Sec. 36C. Child tax credit. . Subparagraph
(B)of section 45R(f)(3) of such Code is amended to read as follows: 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 152(f)(6)(B)(ii) of such Code is amended by striking section 24 and inserting section 36C . Paragraph
(26)of section 501(c) of such Code is amended in the flush matter at the end by striking section 24(c) and inserting section 36C(c) . Section 6211(b)(4)(A) of such Code is amended— by striking 24(d), ; and by inserting , 36C after 36B . Section 6213(g)(2) of such Code is amended— in subparagraph (I), by striking section 24(e) and inserting section 36C(e) ; in subparagraph (L), by striking 24, or 32 and inserting 32, or 36C ; and in subparagraph (P)— by striking 24(h)(2) and inserting 36C(g)(2) ; by striking 24 and inserting 36C ; and by striking (h)(2) thereof and inserting (g)(2) thereof . Section 6402(m) of such Code is amended by striking 24 (by reason of subsection
(d)thereof) or 32 and inserting 32 or 36C . Section 6695(g) of such Code is amended by striking 24, 25A(a)(1), or 32 and inserting 25A(a)(1), 32, or 36C . Paragraph
(2)of section 1324(b) of title 31, United States Code, is amended by inserting , 36C after 36B . Subsection
(a)of section 36C of the Internal Revenue Code of 1986, as redesignated by subsection (a)(1), is amended to read as follows: In the case of a taxpayer with 1 or more qualifying children, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to 45 percent of the taxpayer's earned income (within the meaning of section 32) which is taken into account in computing taxable income for the taxable year. . Subsection
(b)of section 36C of such Code, as so redesignated, is amended to read as follows: The amount of the credit determined under subsection
(a)for any taxable year shall not exceed an amount equal to the product of $1,000 and the number of qualifying children of the taxpayer for the taxable year. The amount which would (but for this paragraph) be allowable as a credit under this section (determined after the application of paragraph (1)) 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— $110,000, in the case of a joint return, $75,000, in the case of an individual who is not married, and $55,000, in the case of a married individual filing a separate return. For purposes of this paragraph— marital status shall be determined under section 7703, and the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. . Section 36C of such Code, as so redesignated, is amended by inserting after subsection
(c)the following new subsection: In the case of any taxable year beginning after 2017, the $1,000 amount in subsection (b)(1) shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting calendar year 2016 for calendar year 1992 in subparagraph
(B)thereof. If any increase determined under paragraph
(1)is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50. . The amendments made by this section shall apply to taxable years beginning after December 31, 2016.