Sec. 2. Increase in and modification of child tax credit
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Section 24 of the Internal Revenue Code of 1986 is amended by striking subsections (a), (b), and
(c)and inserting the following new subsections: 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— $2,000 for each qualifying child of the taxpayer, and $500 for each qualifying dependent (other than a qualifying child) of the taxpayer. 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. For purposes of this section— The term qualifying child means any qualifying dependent of the taxpayer— who is a qualifying child (as defined in section 7706(c)) of the taxpayer, who has not attained age 17 at the close of the calendar year in which the taxable year of the taxpayer begins, and whose name and social security number are included on the taxpayer’s return of tax for the taxable year. 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. 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— 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 on or before the due date of filing such return. . Section 24(d)(1)(A) of the Internal Revenue Code of 1986 is amended to read as follows: the credit which would be allowed under this section determined— by substituting $1,400 for $2,000 in subsection (a)(1), without regard to subsection (a)(2), and without regard to this subsection and the limitation under section 26(a), or . Section 24(d)(1)(B)(i) of such Code is amended by striking $3,000 and inserting $2,500 . Section 24(d) of such Code is amended by inserting after paragraph
(3)the following new paragraph: 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— 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 2017 for 2016 in subparagraph (A)(ii) thereof. If any increase under subparagraph
(A)is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. The amount of any increase under subparagraph
(A)(after the application of subparagraph (B)) shall not exceed $600. . Section 24(e) of such Code is amended to read as follows: 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. . Section 24 of such Code is amended by striking subsection (h). The amendments made by this section shall apply to taxable years beginning after December 31, 2017.