S.Amdt. 366

SA 366. Mr. KERRY submitted an amendment intended to be proposed to
amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus) to
the bill H.R. 1, making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal year ending September 30, 2009, and for other
purposes; which was ordered to lie on the table; as follows:

Beginning on page 436, line 13, strike all through page
437, line 10, and insert the following:
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Eligible individual.--
``(A) In general.--The term `eligible individual' means any
individual other than--
``(i) any nonresident alien individual,

[[Page S1708]]

``(ii) any individual with respect to whom a deduction
under section 151 is allowable to another taxpayer for a
taxable year beginning in the calendar year in which the
individual's taxable year begins, and
``(iii) an estate or trust.
``(B) Identification requirement.--
``(i) In general.--Except as provided in clause (ii), such
term shall not include any individual unless the requirements
of section 32(c)(1)(E) are met with respect to such
individual.
``(ii) Special rules for married individuals.--In the case
of--

``(I) a married individual (within the meaning of section
7703) filing a separate return, the requirements of clause
(i) with respect to such return shall not apply to the
individual's spouse, and
``(II) clause (i) shall not apply to a joint return where
at least 1 spouse was a member of the Armed Forces of the
United States at any time during the taxable year.

``(2) Earned income.--The term `earned income' has the
meaning given such term by section 32(c)(2), except that such
term shall not include net earnings from self-employment
which are not taken into account in computing taxable income.
For purposes of the preceding sentence, 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.
``(3) Special rule for certain eligible individuals.--In
the case of any taxable year beginning in 2009, if an
eligible individual receives any amount as a pension or
annuity for service performed in the employ of the United
States or any State, or any instrumentality thereof, which is
not considered employment for purposes of chapter 21, the
amount of the credit allowed under subsection (a) (determined
without regard to subsection (c)) with respect to such
eligible individual shall be equal to the greater of--
``(A) the amount of the credit determined without regard to
this paragraph or subsection (c), or
``(B) $300 ($600 in the case of a joint return where both
spouses are eligible individuals described in this
paragraph).
If the amount of the credit is determined under subparagraph
(B) with respect to any eligible individual, the modified
adjusted gross income limitation under subsection (b) shall
not apply to such credit.
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