[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6051 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 6051
To amend the Internal Revenue Code of 1986 to establish a refundable
tax credit to increase the take-home pay of American workers and
enhance their financial stability, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 18, 2021
Ms. Tlaib (for herself, Mr. Garcia of Illinois, Ms. Ocasio-Cortez, Ms.
Pressley, Ms. Norton, Ms. Velazquez, Mr. Mfume, Ms. Jackson Lee, Mr.
Bowman, Mr. Pocan, Mrs. Carolyn B. Maloney of New York, Ms. Lee of
California, Mrs. Dingell, and Ms. Clarke of New York) 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
tax credit to increase the take-home pay of American workers and
enhance their financial stability, and for other purposes.
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 ``Building Our Opportunities to
Survive and Thrive Act of 2021'' or the ``BOOST Act of 2021''.
SEC. 2. ESTABLISHMENT OF MIDDLE CLASS TAX CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 36 the following new section:
``SEC. 36A. MIDDLE CLASS TAX CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--In the case of an eligible individual,
there shall be allowed as a credit against the tax imposed by
this subtitle for the taxable year an amount equal to $3,000.
``(2) Phaseout of credit.--The amount of the credit
allowable to the taxpayer under paragraph (1) for the taxable
year shall be reduced (but not below zero) by an amount which
bears the same ratio to the amount of the credit determined
under such paragraph as--
``(A) the amount (not less than zero) equal to the
adjusted gross income of the taxpayer for the preceding
taxable year minus $30,000, bears to
``(B) $20,000.
``(3) Joint returns.--
``(A) In general.--For purposes of determining the
amount of the credit allowed under this section for any
taxable year, if a joint return was filed for the
preceding taxable year by an eligible individual and
such individual's spouse, each of the dollar amounts
under paragraphs (1) and (2) shall be doubled.
``(B) Married individuals.--For purposes of
determining the amount of the credit allowed under this
section for any taxable year, if an individual was
married during the preceding taxable year (within the
meaning of section 7703), this section shall apply only
if a joint return was filed for the preceding taxable
year under section 6013.
``(4) Head of household.--For purposes of determining the
amount of the credit allowed under this section for any taxable
year, if a taxpayer filed a return as a head of household for
the preceding taxable year, the reduction of the credit
allowable to the taxpayer under paragraph (1) shall be
determined under paragraph (2) by substituting `$80,000' for
`$30,000' in subparagraph (A) thereof.
``(5) Inflation adjustments.--
``(A) In general.--In the case of any taxable year
after 2021, each of the dollar amounts under paragraphs
(1), (2), and (4) 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,
determined by substituting `calendar year 2020'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--If any increase determined under
subparagraph (A) is not a multiple of $50, such
increase shall be rounded to the nearest multiple of
$50.
``(b) Eligible Individual.--For purposes of determining the credit
allowed under this section for any taxable year--
``(1) In general.--The term `eligible individual' means an
individual--
``(A) who attained 18 years of age before the close
of the preceding taxable year,
``(B) whose principal place of abode was in the
United States for more than one-half of the preceding
taxable year,
``(C) who was not a dependent for whom a deduction
is allowable under section 151 to another taxpayer for
any taxable year beginning in the same calendar year as
the preceding taxable year, and
``(D) who did not claim the benefits of section 911
for the preceding taxable year.
``(2) Limitation on eligibility of nonresident aliens.--The
term `eligible individual' shall not include any individual who
is a nonresident alien individual for any portion of the
preceding taxable year, unless such individual is treated for
such taxable year as a resident of the United States for
purposes of this chapter by reason of an election under
subsection (g) or (h) of section 6013.
``(3) Identification number requirement.--No credit shall
be allowed under this section to an eligible individual who
does not include on the return of tax for the taxable year--
``(A) such individual's taxpayer identification
number, and
``(B) if the individual was married during the
preceding taxable year (within the meaning of section
7703), the taxpayer identification number of such
individual's spouse.
``(4) Treatment of military personnel stationed outside of
the united states.--For purposes of subparagraph (A)(ii), the
principal place of abode of a member of the Armed Forces of the
United States shall be treated as in the United States during
any period during which such member is stationed outside the
United States while serving on extended active duty with the
Armed Forces of the United States. For purposes of the
preceding sentence, the term `extended active duty' means any
period of active duty pursuant to a call or order to such duty
for a period in excess of 90 days or for an indefinite period.
``(c) Taxable Year Must Be Full Taxable Year.--Except in the case
of a taxable year closed by reason of the death of the taxpayer, no
credit shall be allowable under this section in the case of a taxable
year covering a period of less than 12 months.
``(d) Restrictions on Taxpayer Who Improperly Claimed Credit in
Prior Year.--Rules similar to the rules of section 32(k) shall apply
for purposes of this section.
``(e) Reconciliation of Credit and Advance Payments.--The amount of
the credit allowed under this section for any taxable year shall be
reduced (but not below zero) by the aggregate amount of any advance
payments of such credit under section 7527B for such taxable year.''.
(b) Advance Payment of Middle Class Tax Credit.--
(1) In general.--Chapter 77 of the Internal Revenue Code of
1986 is amended by inserting after section 7527A the following
new section:
``SEC. 7527B. ADVANCE PAYMENT OF MIDDLE CLASS TAX CREDIT.
``(a) In General.--Not later than 6 months after the date of the
enactment of the Building Our Opportunities to Survive and Thrive Act
of 2021, the Secretary shall establish a program for making advance
payments of the credit allowed under section 36A on a monthly basis
(determined without regard to subsection (f) of such section) to any
taxpayer who--
``(1) the Secretary has determined will be allowed such
credit for the taxable year, and
``(2) has made an election under subsection (c).
``(b) Amount of Advance Payment.--
``(1) In general.--For purposes of subsection (a), the
amount of the monthly advance payment of the credit provided to
a taxpayer during the applicable period shall be equal to the
lesser of--
``(A) an amount equal to--
``(i) the amount of the credit which the
Secretary has determined will be allowed to
such taxpayer under section 36A for the taxable
year ending in such applicable period, divided
by
``(ii) 12, or
``(B) such other amount as is elected by the
taxpayer.
``(2) Applicable period.--For purposes of this section, the
term `applicable period' means the 12-month period from the
month of July of the taxable year through the month of June of
the subsequent taxable year.
``(c) Election of Advance Payment.--A taxpayer may elect to receive
an advance payment of the credit allowed under section 36A for any
taxable year by including such election on a timely filed return for
the preceding taxable year.
``(d) Internal Revenue Service Notification.--The Internal Revenue
Service shall take such steps as may be appropriate to ensure that
taxpayers who are eligible to receive the credit under section 36A are
aware of the availability of the advance payment of such credit under
this section.
``(e) Authority.--The Secretary may prescribe such regulations or
other guidance as may be appropriate or necessary for the purposes of
carrying out this section.''.
(c) Income Disregard.--Any credit or refund allowed or made to any
individual by reason of section 36A of the Internal Revenue Code of
1986 (as added by this section) shall not be taken into account as
income and shall not be taken into account as resources for purposes of
determining the eligibility of such individual or any other individual
for benefits or assistance, or the amount or extent of benefits or
assistance, under any Federal program or under any State or local
program financed in whole or in part with Federal funds.
(d) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of the Internal Revenue Code of
1986 is amended by inserting ``36A,'' after ``36,''.
(2) Section 6213(g)(2) of such Code is amended--
(A) in subparagraph (F), by inserting ``or section
36A'' after ``credit)'',
(B) in subparagraph (G), by inserting ``or 36A''
after ``section 32'',
(C) by striking subparagraph (K) and inserting the
following:
``(K) an omission of information required by
section 32(k)(2) or 36(e) or an entry on the return
claiming--
``(i) the credit under section 32 for a
taxable year for which the credit is disallowed
under subsection (k)(1) thereof, or
``(ii) the credit under section 36A for a
taxable year for which the credit is disallowed
under subsection (d) thereof,''; and
(D) in subparagraph (L), by inserting ``36A,''
after ``32,''.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 36 the following new item:
``Sec. 36A. Middle class tax credit.''.
(4) The table of sections for chapter 77 of such Code is
amended by inserting after the item relating to section 7527A
the following:
``Sec. 7527B. Advance payment of middle class tax credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2020.
SEC. 3. SENSE OF THE HOUSE OF REPRESENTATIVES.
It is the sense of the House of Representatives that the costs of
carrying out this Act and the amendments made by this Act should be
fully offset through--
(1) the repeal of Public Law 115-97, with the exception of
any provisions or amendments under such Public Law that provide
relief to taxpayers with less than $100,000 in annual income;
and
(2) a fee, in such amount as is determined appropriate by
the Secretary of the Treasury for purposes of offsetting the
costs of carrying out this Act and the amendments made by this
Act, to be assessed on any financial institution that has total
consolidated assets of more than $50,000,000,000.
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