HR 5142 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide an economic stimulus for individuals.CommentsClose CommentsPermalink

January 28, 2008

Mr. ENGLISH of Pennsylvania introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide an economic stimulus for individuals.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `Family Economic Stimulus Act of 2008'.CommentsClose CommentsPermalink

SEC. 2. RETROACTIVE, 2-YEAR MORATORIUM ON INCLUSION OF UNEMPLOYMENT COMPENSATION IN GROSS INCOME.

(a) In General- Section 85 of the Internal Revenue Code of 1986 (relating to unemployment compensation) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(c) Moratorium- This section shall not apply to any taxable year beginning in 2007 or 2008.'.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 3. TEMPORARY INCREASE IN CHILD CREDIT.

(a) In General- Subsection (a) of section 24 of the Internal Revenue Code of 1986 (relating to allowance of credit) is amended by inserting `($1,200 in the case of the first taxable year beginning in 2008)' after `$1,000'.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 4. 2008 STIMULUS CREDIT.

(a) In General- Section 6428 of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink

`SEC. 6428. 2008 STIMULUS CREDIT.

`(a) In General- In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by chapter 1 for the taxpayer's first taxable year beginning in 2008 an amount equal to $400 ($800 in the case of a joint return).CommentsClose CommentsPermalink





`(b) Limitation Based on Adjusted Gross Income-CommentsClose CommentsPermalink





`(1) IN GENERAL- The amount of the credit allowable under subsection (a) shall be zero if the modified adjusted gross income of the taxpayer exceeds the threshold amount. For purposes of the preceding sentence, the term `modified adjusted gross income' means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.CommentsClose CommentsPermalink





`(2) THRESHOLD AMOUNT- For purposes of paragraph (1), the term `threshold amount' means--CommentsClose CommentsPermalink





`(A) $115,000 in the case of a joint return and head of household (as defined in section 2(b)),CommentsClose CommentsPermalink





`(B) $75,000 in the case of an individual who is not married, andCommentsClose CommentsPermalink





`(C) $57,500 in the case of a married individual filing a separate return.CommentsClose CommentsPermalink





For purposes of this paragraph, marital status shall be determined under section 7703.CommentsClose CommentsPermalink





`(c) Credit Treated as Nonrefundable Personal Credit- For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of chapter 1.CommentsClose CommentsPermalink





`(d) Eligible Individual- For purposes of this section, the term `eligible individual' means any individual other than--CommentsClose CommentsPermalink





`(1) any estate or trust,CommentsClose CommentsPermalink





`(2) any nonresident alien individual, andCommentsClose CommentsPermalink





`(3) 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.CommentsClose CommentsPermalink





`(e) Coordination With Advance Refunds of Credit-CommentsClose CommentsPermalink





`(1) IN GENERAL- The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).CommentsClose CommentsPermalink





`(2) JOINT RETURNS- In the case of a refund or credit made or allowed under subsection (f) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.CommentsClose CommentsPermalink





`(f) Advance Refunds of Credit Based on Prior Year Data-CommentsClose CommentsPermalink





`(1) IN GENERAL- Each individual who was an eligible individual for such individual's first taxable year beginning in 2006 shall be treated as having made a payment against the tax imposed by chapter 1 for such first taxable year in an amount equal to the advance refund amount for such taxable year.CommentsClose CommentsPermalink





`(2) ADVANCE REFUND AMOUNT- For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if--CommentsClose CommentsPermalink





`(A) this section (other than subsections (c) and (e) and this subsection) had applied to such taxable year, andCommentsClose CommentsPermalink





`(B) the credit for such taxable year were not allowed to exceed the excess (if any) of--CommentsClose CommentsPermalink





`(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, overCommentsClose CommentsPermalink





`(ii) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits).CommentsClose CommentsPermalink





`(3) TIMING OF PAYMENTS- In the case of any overpayment attributable to this subsection, the Secretary shall, subject to the provisions of this title, refund or credit such overpayment as rapidly as possible and, to the extent practicable, before the date which is 120 days after the date of the enactment of this section. No refund or credit shall be made or allowed under this subsection after December 31, 2008.CommentsClose CommentsPermalink





`(4) NO INTEREST- No interest shall be allowed on any overpayment attributable to this subsection.'.CommentsClose CommentsPermalink





(b) Conforming Amendment- Paragraph (1) of section 1(i) of such Code is amended by striking subparagraph (D).CommentsClose CommentsPermalink





(c) Clerical Amendment- The item relating to section 6428 in the table of sections for subchapter B of chapter 65 of such Code is amended to read as follows:CommentsClose CommentsPermalink





`Sec. 6428. 2008 stimulus credit.'.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 5. ALTERNATIVE EXTENDED-BENEFITS INDICATORS.

(a) In General- For purposes of determining whether there are State `on' or `off' indicators (within the meaning of section 203(d) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note)) for any of the first 52 weeks beginning on or after the date of the enactment of this Act, such section 203(d) shall be applied by substituting `4' for `5' each place it appears.CommentsClose CommentsPermalink





(b) Definitions- For purposes of this section, the terms `State' and `week' have the respective meanings given such terms by section 205 of such Act.CommentsClose CommentsPermalink

SEC. 6. REQUIRED DISTRIBUTION OF STATE-SPECIFIC INFORMATION PACKETS.

(a) In General- Subsection (a) of section 3304 of the Internal Revenue Code of 1986 (relating to approval of State laws) is amended by striking `and' at the end of paragraph (18), by striking the period at the end of paragraph (19) and inserting `; and', and by inserting after paragraph (19) the following new paragraph:CommentsClose CommentsPermalink





`(20) the State will distribute to unemployed individuals State-specific information packets explaining unemployment insurance eligibility conditions.'.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by subsection (a) shall apply to certifications of States for 2008 and thereafter, except that section 3304(a)(20) of the Internal Revenue Code of 1986, as added by subsection (a), shall not be a requirement for the State law of any State prior to July 1, 2009, if the legislature of such State does not meet in a regular session which closes during the calendar year 2008.CommentsClose CommentsPermalink