Sec. 110116. MAGA accounts contribution pilot program
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/bill/119/hr/1/rh/section-110116A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subchapter B of chapter 65 is amended by adding at the end the following new section: In the case of any taxpayer with respect to whom an eligible individual is a qualifying child, there shall be allowed a one-time credit of $1,000 with respect to each such eligible individual who is a qualifying child of such taxpayer which shall be payable by the Secretary only to the MAGA account with respect to which such eligible individual is the account beneficiary. In the case of any eligible individual that the Secretary determines is not the account beneficiary of any MAGA account as of the qualifying date of such eligible individual, the Secretary shall establish an account for the benefit of such eligible individual.
For purposes of paragraph (1), the term qualifying date means, with respect to an eligible individual, the first date on which a return of tax is filed by an individual with respect to whom such eligible individual is a qualifying child with respect to the taxable year to which such return relates. In the case of any eligible individual for the benefit of whom the Secretary establishes an account under paragraph (1), the Secretary shall— notify any individual with respect to whom such eligible individual is a qualifying child for the taxable year described in paragraph
(2)of the establishment of such account, and shall provide an opportunity to such individual to elect to decline the application of this subsection to such qualifying child. For purposes of selecting a trustee for an account established under paragraph (1), the Secretary shall take into account— the history of reliability and regulatory compliance of such trustee, the customer service experience of such trustee, the costs imposed by such trustee on the account or account beneficiary, and to the extent practicable, the preferences of any individual described in paragraph (3)(A) with respect to such eligible individual. For purposes of subsection (a), the term eligible individual means an individual— who is born after December 31, 2024, and before January 1, 2029, and who is a United States citizen at birth. No credit shall be allowed under subsection
(a)to a taxpayer unless such taxpayer includes on the return of tax for the taxable year— such individual’s social security number, if such individual is married, the social security number of such individual’s spouse, and the social security number of the eligible individual with respect to whom such credit is allowed. For purposes of paragraph (1), the term social security number shall have the meaning given such term in section 24(h)(7). For purposes of this section— The term qualifying child has the meaning given such term in section 152(c). The terms MAGA account and account beneficiary have the meaning given such terms in section 530A(b). . Part I of subchapter A of chapter 68 of subtitle F is amended by adding at the end the following new section: In the case of any taxpayer that makes an excessive claim for a credit under section 6434— if such excess is a result of negligence or disregard of the rules or regulations, there shall be imposed a penalty of $500, or if such excess is a result of fraud, there shall be imposed a penalty of $1,000. The terms negligence and disregard have the same meaning as when such terms are used in section 6662. . Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking and at the end of subparagraph (Y), by striking the period at the end of subparagraph
(Z)and inserting , and , and by inserting after subparagraph
(Z)the following new subparagraph: an omission of a correct social security number required under section 6434(d)(1) (relating to the MAGA accounts contribution pilot program). . The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item: Sec. 6434. MAGA accounts contribution pilot program. . The table of sections for part I of subchapter A of chapter 68 of subtitle F is amended by inserting after the item relating to section 6658 the following new item: Sec. 6659. Improper claim for MAGA account contribution pilot program credit. . The amendments made by this section shall apply to taxable years beginning after December 31, 2024.