Child Credit Preservation and Expansion Act of 2004

(This measure has not been amended since it was introduced. The summary of that version is repeated here.)

Child Credit Preservation and Expansion Act of 2004 - Amends the Internal Revenue Code to repeal the scheduled reductions in the amount of the child tax credit for taxable years beginning in 2005 through 2009 (from $1,000 to $700 in 2005 through 2008 and $800 in 2009). Makes the $1,000 credit amount permanent.

Increases the income threshold amount for calculating reductions in the credit amount to $125,000 ($250,000 for married taxpayers filing a joint return). Eliminates the reduction in the percentage of earned income for calculating the refundable portion of the credit (15 to 10 percent) for taxable years beginning before 2005.

Includes in earned income for purposes of calculating the refundable portion of the credit otherwise tax excludable combat zone compensation of members of the armed forces.

Exempts from the general termination date in the Economic Growth and Tax Relief Reconciliation Act of 2001 (December 31, 2010) provisions of that Act disregarding as income any refunds from the child tax credit for purposes of determining eligibility for federally funded assistance programs.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4359 Introduced in House (IH)]







108th CONGRESS
  2d Session
                                H. R. 4359

 To amend the Internal Revenue Code of 1986 to increase the child tax 
                                credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 13, 2004

 Mr. Porter (for himself, Mr. Blunt, Mr. Cantor, Mr. Otter, Mr. Crane, 
Mr. Pickering, Mr. Brown of South Carolina, Mr. Simpson, Mr. Kingston, 
   Mr. Baker, Mr. Burns, Mr. Wicker, Mr. Hayworth, Mrs. Myrick, Mr. 
  Fossella, Mr. Rogers of Alabama, Mr. Istook, Mr. Schrock, Mr. Mario 
 Diaz-Balart of Florida, Mr. Kirk, Mr. Murphy, Mr. Sensenbrenner, Mr. 
   Barrett of South Carolina, Mr. Weldon of Florida, Mr. Bachus, Mr. 
 Gibbons, Mr. Simmons, Mr. Akin, Mr. Shimkus, Mr. Rogers of Michigan, 
 Mr. Wilson of South Carolina, Mr. DeMint, Mr. King of Iowa, Ms. Hart, 
   Mrs. Capito, Mr. Ryun of Kansas, Mr. Sessions, Mr. Beauprez, Mrs. 
  Miller of Michigan, Mr. Gingrey, Mr. Gilchrest, Mr. Doolittle, Mr. 
  Duncan, Mrs. Jo Ann Davis of Virginia, Mr. Smith of New Jersey, Mr. 
      Camp, Mr. Tiberi, Mr. Gillmor, Mr. Forbes, Mr. Souder, Mr. 
Frelinghuysen, Ms. Pryce of Ohio, Mr. Ose, and Mr. Manzullo) 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 increase the child tax 
                                credit.

    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 ``Child Credit Preservation and 
Expansion Act of 2004''.

SEC. 2. INCREASE IN CHILD TAX CREDIT.

    (a) In General.--Subsection (a) of section 24 of the Internal 
Revenue Code of 1986 (relating to child tax credit) is amended to read 
as follows:
    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year with 
respect to each qualifying child of the taxpayer an amount equal to 
$1,000.''.
    (b) Increase in Phaseout Thresholds.--Paragraph (2) of section 
24(b) of such Code is amended to read as follows:
            ``(2) Threshold amount.--For purposes of paragraph (1), the 
        term `threshold amount' means $125,000 ($250,000 in the case of 
        a joint return).''.
    (c) Acceleration of Increase in Refundable Portion of Credit.--
Clause (i) of section 24(d)(1)(B) of such Code is amended by striking 
``(10 percent in the case of taxable years beginning before January 1, 
2005)''.
    (d) Combat Pay Taken Into Account.--Paragraph (1) of section 24(d) 
of such Code is amended by adding at the end the following new 
sentence: ``For purposes of subparagraph (B), any amount excluded from 
gross income by reason of section 112 shall be treated as earned income 
which is taken into account in computing taxable income for the taxable 
year.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.

SEC. 3. REPEAL OF SUNSET.

    Title IX of the Economic Growth and Tax Relief Reconciliation Act 
of 2001 shall not apply to the provisions of, and amendments made by, 
sections 201 and 203 of such Act.
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