S.Amdt. 3200

SA 3200. Mr. MANCHIN submitted an amendment intended to be proposed
by him to the bill H.R. 7024, to make improvements to the child tax
credit, to provide tax incentives to promote economic growth, to
provide special rules for the taxation of certain residents of Taiwan
with income from sources within the United States, to provide tax
relief with respect to certain Federal disasters, to make improvements
to the low-income housing tax credit, and for other purposes; which was
ordered to lie on the table; as follows:

At the end of title I, insert the following:

SEC. 106. ENSURING THAT CHILD TAX CREDIT DOES NOT EXCEED
PROJECTED COST.

(a) Reduction of Child Tax Credit in Case of Unanticipated
Deficit Increase.--
(1) In general.--In the case of the first taxable year
beginning after any applicable fiscal year for which there is
an unanticipated deficit increase, the amount of the credit
allowable under section 24 of the Internal Revenue Code of
1986 with respect to such taxable year shall be reduced by an
amount equal to the applicable percentage of the amount of
the credit otherwise allowable under such section (as
determined without regard to this section) with respect to
such taxable year.
(2) Nonapplication to subsequent taxable years.--Any
reduction pursuant to paragraph (1) in the amount of the
credit allowable under section 24 of the Internal Revenue
Code of 1986 for a taxable year shall not apply to any
subsequent taxable year.
(b) Applicable Percentage.--
(1) In general.--For purposes of subsection (a), with
respect to any applicable fiscal year, the applicable
percentage shall be the amount (expressed as a percentage)
equal to the quotient of--
(A) the unanticipated deficit increase with respect to such
fiscal year, divided by
(B) the projected child tax credit cost for such fiscal
year.
(2) Determination.--
(A) Treasury report.--Not later than July 31 of each
applicable fiscal year, the Secretary shall, based on the
most recent information available, submit a report to
Congress containing--
(i) an estimate of the total amount of credits allowed to
all taxpayers under section 24 of the Internal Revenue Code
of 1986 for the taxable year ending during such fiscal year,
(ii) a determination as to whether there was an
unanticipated deficit increase for such fiscal year, and
(iii) in the case of a determination under clause (ii) that
there was an unanticipated deficit increase for such fiscal
year, the projected applicable percentage with respect to the
first taxable year beginning after such fiscal year.
(B) CBO report.--
(i) In general.--Not later than 60 days after the issuance
of the report described in subparagraph (A), the Director of
the Congressional Budget Office shall publish a report
containing--

(I) estimates and determinations, as made by the
Congressional Budget Office in consultation with the Joint
Committee on Taxation, with respect to the items described in
clauses (i) through (iii) of subparagraph (A), and
(II) an explanation of any differences between the
estimates and determinations described in subclause (I) and
the estimates and determinations described in subparagraph
(A).

(ii) Provision of necessary information.--Notwithstanding
section 6103(j)(6) of the Internal Revenue Code of 1986, the
Secretary shall provide the Congressional Budget Office with
any return information necessary to prepare the report
described in clause (i), provided that such information is
provided in a manner to ensure that such information cannot
be associated with, or otherwise identify, directly or
indirectly, a particular taxpayer.
(C) Resolution of conflicting estimates.--In preparing the
report required under subparagraph (D)--
(i) the Secretary shall review the report described in
subparagraph (B)(i), and
(ii) if the Secretary determines that there is a
significant difference between the reports described in
subparagraphs (A) and (B)(i), the Secretary shall consult
with the Committee on Finance of the Senate and the Committee
on Ways and Means of the House of Representatives regarding
that difference, which shall include, to the extent
practicable, written communication to those committees that
affords such committees the opportunity to comment before the
issuance of the report described in subparagraph (D).
(D) Final report.--Not later than 45 days after the
publication of the report described in subparagraph (B)(i),
if the Secretary determines that there was an unanticipated
deficit increase for the applicable fiscal year described in
subparagraph (A), the Secretary shall publish on the public
website of the Internal Revenue Service--
(i) the applicable percentage with respect to the first
taxable year beginning after such fiscal year, and
(ii) the resulting reduction in the amount of the credit
allowable under section 24 of the Internal Revenue Code of
1986 for such taxable year.
(c) Definitions.--In this section:
(1) Applicable fiscal year.--The term ``applicable fiscal
year'' means fiscal year 2024 and each of the 9 succeeding
fiscal years.
(2) Projected child tax credit cost.--The term ``projected
child tax credit cost'' means, with respect to any fiscal
year, the sum of--
(A) the estimated cost to the Government for such fiscal
year attributable to section 24 of the Internal Revenue Code
of 1986 in the Budget and Economic Outlook: 2024 to 2034
Supplemental Revenue Projections of the Congressional Budget
Office, published February 7, 2024, and
(B) the amount equal to the sum of--
(i) the absolute value of the amount of the reduction in
revenue attributable to this title in the Congressional
Budget Office cost estimate for H.R. 7024, Tax Relief for
American Families and Workers Act of 2024, as published
January 25, 2024, for such fiscal year, and
(ii) the amount of direct spending attributable to this
title in the Congressional Budget Office cost estimate for
H.R. 7024, Tax Relief for American Families and Workers Act
of 2024, as published January 25, 2024, for such fiscal year.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the Secretary's delegate.
(4) Unanticipated deficit increase.--The term
``unanticipated deficit increase'' means, with respect to any
fiscal year, the excess (if any) of--
(A) the sum of--
(i) the absolute value of the amount of the reduction in
revenue attributable to section 24 of the Internal Revenue
Code of 1986 for such fiscal year, and
(ii) the amount of direct spending attributable to section
24 of such Code for such fiscal year, over
(B) the projected child tax credit cost for such fiscal
year.
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