[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2763 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2763
To amend the Internal Revenue Code of 1986 to establish a refundable
child tax credit with monthly advance payment.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 9, 2025
Ms. DeLauro (for herself, Ms. DelBene, Mr. Torres of New York, Mr.
McGovern, Ms. Norton, Ms. Chu, Ms. Schakowsky, Mr. Mrvan, Mrs. Ramirez,
Ms. Adams, Mr. Horsford, Mr. Foster, Mr. Thompson of Mississippi, Mr.
Fields, Ms. Lee of Pennsylvania, Mr. Amo, Mr. Davis of Illinois, Mr.
Casten, Mr. McGarvey, Ms. Scanlon, Ms. Moore of Wisconsin, Mrs.
Foushee, Ms. Tlaib, Mr. Evans of Pennsylvania, Ms. Williams of Georgia,
Ms. Balint, Mr. Johnson of Georgia, Mrs. McBath, Ms. Garcia of Texas,
Mr. Raskin, Ms. Omar, Mr. Soto, Mr. Larson of Connecticut, Mr. Himes,
Mr. Beyer, Ms. Sewell, Ms. Ross, Ms. Jacobs, Mr. Doggett, Ms. Wasserman
Schultz, Ms. Brown, Mr. Moulton, Ms. McClellan, Ms. Budzinski, Mr.
Swalwell, Ms. Pingree, Mrs. Dingell, Ms. Dexter, Mr. Boyle of
Pennsylvania, Mr. Carson, Ms. Escobar, Mr. Morelle, Ms. Sanchez, Mr.
Connolly, Mr. Quigley, Mr. Courtney, Mr. Espaillat, Ms. Stansbury, Mr.
Deluzio, Mr. Larsen of Washington, Mr. Casar, Mr. Pallone, Ms. Kelly of
Illinois, Mr. Bishop, Mr. Pocan, Mr. Veasey, Ms. Salinas, Mr. Scott of
Virginia, Ms. Titus, Mr. Subramanyam, Mrs. Hayes, Ms. McBride, Ms.
Brownley, Mr. Stanton, Ms. McCollum, Mr. Case, Mrs. Torres of
California, Ms. Lofgren, Mr. Tonko, Ms. Ocasio-Cortez, Ms. Dean of
Pennsylvania, Mr. Landsman, Mr. Levin, Mr. Sherman, Ms. Houlahan, Mr.
Costa, Mr. Ivey, Ms. Matsui, Mr. Frost, Ms. Tokuda, Mr. Kennedy of New
York, Ms. Castor of Florida, Ms. Pettersen, Mr. Garamendi, Mr.
Gottheimer, Mr. Jackson of Illinois, Ms. Randall, Ms. Lee of Nevada,
Ms. Hoyle of Oregon, Mr. Neguse, Ms. Wilson of Florida, Mr. Thanedar,
Mrs. Trahan, Mr. Schneider, Mrs. Beatty, Mr. Carter of Louisiana, Mr.
Olszewski, Mr. Goldman of New York, Mr. Carbajal, Mr. Peters, Mr.
Vargas, Mrs. McClain Delaney, Ms. Lois Frankel of Florida, Mrs. Watson
Coleman, Mr. Mullin, Ms. Clark of Massachusetts, Mrs. Cherfilus-
McCormick, Ms. Barragan, Ms. Velazquez, Mrs. McIver, Ms. Strickland,
Ms. Pressley, Ms. Meng, Ms. Clarke of New York, Mr. Auchincloss, Mr.
Khanna, Mr. Garcia of California, Mr. Aguilar, Ms. Leger Fernandez, Mr.
Vindman, Ms. Waters, Mr. Takano, Mr. Latimer, Ms. Bonamici, Ms.
Jayapal, Ms. McDonald Rivet, Mr. David Scott of Georgia, Ms. Stevens,
Mr. Smith of Washington, Mr. Keating, Mr. Lieu, Ms. Morrison, Mr.
Panetta, Mr. Lynch, Mr. DeSaulnier, Mr. Sorensen, Ms. Bynum, Ms. Simon,
Ms. Underwood, Mr. Tran, Ms. DeGette, Ms. Sherrill, Mr. Suozzi, Mr.
Cleaver, Mr. Menendez, Mr. Min, Ms. Ansari, Ms. Pou, Mr. Gomez, Ms.
Friedman, Mr. Bera, Mr. Garcia of Illinois, Mr. Nadler, Mr. Ruiz, Mr.
Huffman, Mr. Castro of Texas, Mr. Figures, Ms. Elfreth, Mr. Mfume, Mr.
Cisneros, Mr. Ryan, Mr. Vasquez, Ms. Schrier, Mr. Cohen, Ms. Scholten,
Mr. Riley of New York, Ms. Craig, Ms. Johnson of Texas, Mr. Whitesides,
Mr. Moskowitz, Mr. Hoyer, Mr. Cuellar, Mr. Liccardo, Mr. Gray, Ms.
Goodlander, Mr. Conaway, Mr. Correa, Mr. Magaziner, Mrs. Fletcher, Ms.
Pelosi, Mr. Bell, Ms. Crockett, Mrs. Sykes, Ms. Kaptur, Mr. Green of
Texas, Ms. Plaskett, Mr. Mannion, Mr. Jeffries, Mr. Crow, Ms. Kamlager-
Dove, Mr. Clyburn, Mr. Krishnamoorthi, Mr. Norcross, Mr. Davis of North
Carolina, Mr. Vicente Gonzalez of Texas, Ms. Davids of Kansas, Ms.
Rivas, Mr. Meeks, Mr. Pappas, Mr. Harder of California, and Mr.
Hernandez) 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 establish a refundable
child tax credit with monthly advance payment.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Family Act''.
SEC. 2. ESTABLISHMENT OF REFUNDABLE CHILD TAX CREDIT WITH MONTHLY
ADVANCE PAYMENT.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 24 the following new sections:
``SEC. 24A. MONTHLY CHILD TAX CREDIT.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year the sum of
the monthly specified child allowances determined with respect to the
taxpayer under subsection (b) for each calendar month during such
taxable year.
``(b) Monthly Specified Child Allowance.--
``(1) In general.--For purposes of this section, the term
`monthly specified child allowance' means, with respect to any
taxpayer for any calendar month, the sum of--
``(A) $300, with respect to each specified child of
such taxpayer who will (as of the close of such month)
have attained age 6, plus
``(B) 120 percent of the dollar amount in effect
for such month under subparagraph (A), with respect to
each specified child of such taxpayer who will not (as
of the close of such month) have attained age 6.
In the case of any specified child of such taxpayer who will
not (as of the close of such month) have attained the age of 1
month, subparagraph (B) shall be applied by substituting `800
percent' for `120 percent'.
``(2) Limitations based on modified adjusted gross
income.--
``(A) Initial reduction.--The monthly specified
child allowance otherwise determined under paragraph
(1) with respect to any taxpayer for any calendar month
shall be reduced (but not below zero) by \1/12\ of 5
percent of the excess (if any) of the taxpayer's
modified adjusted gross income for the applicable
taxable year over the initial threshold amount in
effect for such applicable taxable year.
``(B) Limitation on initial reduction.--The amount
of the reduction under subparagraph (A) shall not
exceed the lesser of--
``(i) the excess (if any) of--
``(I) the monthly specified child
allowance with respect to the taxpayer
for such calendar month (determined
without regard to this paragraph), over
``(II) the amount which would be
determined under subclause (I) if the
dollar amounts in effect under
subparagraphs (A) and (B) of paragraph
(1) were each equal to $166.67, or
``(ii) \1/12\ of 5 percent of the excess of
the secondary threshold amount over the initial
threshold amount.
``(C) Secondary reduction.--The monthly specified
child allowance otherwise determined under paragraph
(1) with respect to any taxpayer for such calendar
month (determined after the application of
subparagraphs (A) and (B)) shall be reduced (but not
below zero) by \1/12\ of 5 percent of the excess (if
any) of the taxpayer's modified adjusted gross income
for the applicable taxable year over the secondary
threshold amount.
``(D) Definitions related to limitations based on
modified adjusted gross income.--For purposes of this
paragraph--
``(i) Initial threshold amount.--The term
`initial threshold amount' means--
``(I) $150,000, in the case of a
joint return or surviving spouse (as
defined in section 2(a)),
``(II) \1/2\ the dollar amount in
effect under subclause (I), in the case
of a married individual filing a
separate return, and
``(III) $112,500, in any other
case.
``(ii) Secondary threshold amount.--The
term `secondary threshold amount' means--
``(I) $400,000, in the case of a
joint return or surviving spouse (as
defined in section 2(a)),
``(II) $200,000, in the case of a
married individual filing a separate
return, and
``(III) $300,000, in any other
case.
``(iii) Applicable taxable year.--The term
`applicable taxable year' means, with respect
to any taxable year for which the credit under
this section is determined--
``(I) such taxable year, or
``(II) if the taxpayer elects the
application of this subclause (at such
time and in such form and manner as the
Secretary may provide), the preceding
taxable year or the second preceding
taxable year (as specified in such
election).
``(iv) Modified adjusted gross income.--The
term `modified adjusted gross income' means
adjusted gross income increased by any amount
excluded from gross income under section 911,
931, or 933.
``(3) Inflation adjustments.--
``(A) Monthly specified child allowance.--In the
case of any month beginning after December 31, 2025,
the $300 amount in paragraph (1)(A) shall be increased
by an amount equal to--
``(i) such dollar amount, multiplied by--
``(ii) the percentage (if any) by which--
``(I) the CPI (as defined in
section 1(f)(4)) for the calendar year
preceding the calendar year in which
such month begins, exceeds
``(II) the CPI (as so defined) for
calendar year 2024.
``(B) Initial threshold amount.--In the case of any
taxable year beginning after December 31, 2024, the
dollar amounts in subclauses (I) and (III) of paragraph
(2)(D)(i) shall each be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the percentage (if any) which would
be determined under subparagraph (A)(ii) if
subclause (II) thereof were applied by
substituting `2022' for `2024'.
``(C) Rounding.--
``(i) Monthly specified child allowance.--
Any increase under subparagraph (A) which is
not a multiple of $10 shall be rounded to the
nearest multiple of $10.
``(ii) Initial threshold amount.--Any
increase under subparagraph (B) which is not a
multiple of $5,000 shall be rounded to the
nearest multiple of $5,000.
``(c) Specified Child.--For purposes of this section--
``(1) In general.--The term `specified child' means, with
respect to any taxpayer for any calendar month, an individual--
``(A) who has the same principal place of abode as
the taxpayer for more than one-half of such month,
``(B) who is younger than the taxpayer and will
not, as of the close of such month, have attained age
18,
``(C) who receives care from the taxpayer during
such month that is not compensated,
``(D) who is not the spouse of the taxpayer at any
time during such month, and
``(E) who either--
``(i) is a citizen, national, or resident
of the United States, or
``(ii) if the taxpayer is a citizen or
national of the United States, such individual
is a legally adopted individual of such
taxpayer or is lawfully placed with such
taxpayer for legal adoption by such taxpayer.
``(2) Certain individuals ineligible.--In the case of an
individual who is a specified child with respect to another
taxpayer for any calendar month, such individual shall be
treated for such calendar month as having no specified
children.
``(3) Care from the taxpayer.--
``(A) In general.--Except as otherwise provided by
the Secretary, whether any individual receives care
from the taxpayer (within the meaning of paragraph
(1)(C)) shall be determined on the basis of facts and
circumstances with respect to the following factors:
``(i) The supervision provided by the
taxpayer regarding the daily activities and
needs of the individual.
``(ii) The maintenance by the taxpayer of a
secure environment at which the individual
resides.
``(iii) The provision or arrangement by the
taxpayer of, and transportation by the taxpayer
to, medical care at regular intervals and as
required for the individual.
``(iv) The involvement by the taxpayer in,
and financial and other support by the taxpayer
for, educational or similar activities of the
individual.
``(v) Any other factor that the Secretary
determines to be appropriate to determine
whether the individual receives care from the
taxpayer.
``(B) Determination of whether care is
compensated.--For purposes of determining if care is
compensated within the meaning of paragraph (1)(C),
compensation from the Federal Government, a State or
local government, a Tribal government, or any
possession of the United States shall not be taken into
account.
``(4) Application of tie-breaker rules.--
``(A) In general.--Except as provided in
subparagraph (D), if any individual would (but for this
paragraph) be a specified child of 2 or more taxpayers
for any month, such individual shall be treated as the
specified child only of the taxpayer who is--
``(i) the parent of the individual (or, if
such individual would (but for this paragraph)
be a specified child of 2 or more parents of
the individual for such month, the parent of
the individual determined under subparagraph
(B)),
``(ii) if the individual is not a specified
child of any parent of the individual
(determined without regard to this paragraph),
the specified relative of the individual with
the highest adjusted gross income for the
taxable year which includes such month, or
``(iii) if the individual is neither a
specified child of any parent of the individual
nor a specified child of any specified relative
of the individual (in both cases determined
without regard to this paragraph), the taxpayer
with the highest adjusted gross income for the
taxable year which includes such month.
``(B) Tie-breaker among parents.--If any individual
would (but for this paragraph) be the specified child
of 2 or more parents of the individual for any month,
such child shall be treated only as the specified child
of--
``(i) the parent with whom the child
resided for the longest period of time during
such month, or
``(ii) if the child resides with both
parents for the same amount of time during such
month, the parent with the highest adjusted
gross income for the taxable year which
includes such month.
``(C) Specified relative.--For purposes of this
paragraph, the term `specified relative' means an
individual who is--
``(i) an ancestor of a parent of the
specified child,
``(ii) a brother or sister of a parent of
the specified child, or
``(iii) a brother, sister, stepbrother, or
stepsister of the specified child.
``(D) Certain parents or specified relatives not
taken into account.--This paragraph shall be applied
without regard to any parent or specified relative of
an individual for any month if--
``(i) such parent or specified relative
elects to have such individual not be treated
as a specified child of such parent or
specified relative for such month,
``(ii) in the case of a parent of such