S.Amdt. 1642

SA 1642. Mr. RUBIO (for himself and Mr. Lee) submitted an amendment
intended to be proposed to amendment SA 1618 proposed by Mr. McConnell
(for Mr. Hatch (for himself and Ms. Murkowski)) to the bill H.R. 1, to
provide for reconciliation pursuant to titles II and V of the
concurrent resolution on the budget for fiscal year 2018; which was
ordered to lie on the table; as follows:

Strike section 11022 and insert the following:

SEC. 11022. INCREASE IN AND MODIFICATION OF CHILD TAX CREDIT.

(a) In General.--Section 24 is amended by adding at the end
the following new subsection:
``(h) Special Rules for Taxable Years 2018 Through 2025.--
``(1) In general.--In the case of a taxable year beginning
after December 31, 2017, and before January 1, 2026, this
section shall be applied as provided in paragraphs (2)
through (8).
``(2) Credit amount.--Subsection (a) shall be applied by
substituting `$2,000' for `$1,000'.
``(3) Limitation.--In lieu of the amount determined under
subsection (b)(2), the threshold amount shall be--
``(A) in the case of a joint return, $500,000, and
``(B) in the case of an individual who is not married or a
married individual filing a separate return, $250,000.
``(4) Definition of qualifying child.--Paragraph (1) of
subsection (c) shall be applied by substituting `18' for
`17'.
``(5) Partial credit allowed for certain other
dependents.--
``(A) In general.--The credit determined under subsection
(a) (after the application of paragraph (2)) shall be
increased by $500 for each dependent of the taxpayer (as
defined in section 152) other than a qualifying child
described in subsection (c) (after the application of
paragraph (4)).
``(B) Exception for certain noncitizens.--Subparagraph (A)
shall not apply with respect to any individual who would not
be a dependent if subparagraph (A) of section 152(b)(3) were
applied without regard to all that follows `resident of the
United States'.
``(6) Portion of credit refundable.--In lieu of subsection
(d), the following provisions shall apply for purposes of the
credit allowable under this section:
``(A) In general.--The aggregate credits allowed to a
taxpayer under subpart C shall be increased by the lesser
of--
``(i) the credit which would be allowed under this section
without regard to this paragraph and the limitation under
section 26(a), or
``(ii) the amount by which the aggregate amount of credits
allowed by this subpart (determined without regard to this
paragraph) would increase if the limitation imposed by
section 26(a) were increased by an amount equal to the sum of
the taxpayer's payroll taxes for the taxable year.
``(B) Payroll taxes.--
``(i) In general.--For purposes of subparagraph (A), the
term `payroll taxes' means, with respect to any taxpayer for
any taxable year, the amount of the taxes imposed by--

``(I) section 1401 on the self-employment income of the
taxpayer for the taxable year,
``(II) section 3101 on wages received by the taxpayer
during the calendar year in which the taxable year begins,
``(III) section 3111 on wages paid by an employer with
respect to employment of the taxpayer during the calendar
year in which the taxable year begins,
``(IV) sections 3201(a) and 3211(a) on compensation
received by the taxpayer during the calendar year in which
the taxable year begins, and
``(V) section 3221(a) on compensation paid by an employer
with respect to services rendered by the taxpayer during the
calendar year in which the taxable year begins.

``(ii) Coordination with special refund of payroll taxes.--
The term `payroll taxes' shall not include any taxes to the
extent the taxpayer is entitled to a special refund of such
taxes under section 6413(c).
``(iii) Special rule.--Any amounts paid pursuant to an
agreement under section 3121(l) (relating to agreements
entered into by American employers with respect to foreign
affiliates) which are equivalent to the taxes referred to in
subclause (II) or (III) of clause (i) shall be treated as
taxes referred to in such clause.
``(C) Exception for taxpayers excluding foreign earned
income.--Subparagraph (A) shall not apply to any taxpayer for
any taxable year if such taxpayer elects to exclude any
amount from gross income under section 911 for such taxable
year.
``(7) Adjustment for inflation.--
``(A) In general.--In the case of a taxable year beginning
after 2017, the $2,000 amount in paragraph (2) shall be
increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins.
``(B) Rounding.--Any increase determined under subparagraph
(A) shall be rounded to the next highest multiple of $100.
``(8) Social security number required.--No credit shall be
allowed under subsection (d) to a taxpayer with respect to
any qualifying child unless the taxpayer includes the social
security number of such child on the return of tax for the
taxable year. For purposes of the preceding sentence, the
term `social security number' means 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 is issued
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.''.
(b) Increase in Corporate Tax Rate.--Subsection (b) of
section 11, as amended by section 13001 of this Act, is
amended by striking ``20 percent'' and inserting ``22
percent''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2017.
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