Us Congress 2025-2026 Regular Session

Us Congress House Bill HB905 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 905
5	5	To amend the Internal Revenue Code of 1986 to extend the earned income
6	6	tax credit to all taxpayers with dependents and to qualifying students,
7	7	and for other purposes.
8	8	IN THE HOUSE OF REPRESENTATIVES
9	9	JANUARY31, 2025
10	10	Mrs. W
11	11	ATSONCOLEMAN(for herself, Mrs. HAYES, Mrs. MCIVER, Ms. NOR-
12	12	TON, Mr. BISHOP, Mr. JOHNSONof Georgia, Mr. THOMPSONof Mis-
13	13	sissippi, Ms. C
14	14	LARKEof New York, Mrs. CHERFILUS-MCCORMICK, Ms.
15	15	A
16	16	NSARI, Ms. MCDONALDRIVET, Ms. WILSONof Florida, Ms.
17	17	K
18	18	AMLAGER-DOVE, Mr. MFUME, Mrs. FOUSHEE, Ms. BROWN, and Ms.
19	19	M
20	20	CCLELLAN) introduced the following bill; which was referred to the
21	21	Committee on Ways and Means
22	22	A BILL
23	23	To amend the Internal Revenue Code of 1986 to extend
24	24	the earned income tax credit to all taxpayers with de-
25	25	pendents and to qualifying students, and for other pur-
26	26	poses.
27	27	Be it enacted by the Senate and House of Representa-1
28	28	tives of the United States of America in Congress assembled, 2
29	29	SECTION 1. SHORT TITLE. 3
30	30	This Act may be cited as the ‘‘EITC Modernization 4
31	31	Act’’. 5
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34	34	•HR 905 IH
35	35	SEC. 2. FINDINGS. 1
36	36	Congress finds the following: 2
37	37	(1) The Federal earned income tax credit is a 3
38	38	refundable tax credit for lower- and middle-income 4
39	39	working individuals and families whose earnings are 5
40	40	below an income threshold. 6
41	41	(2) Since its establishment in 1975, the credit 7
42	42	has increased family income, reduced child poverty, 8
43	43	and promoted employment by supplementing the 9
44	44	earnings of low-wage workers, including military 10
45	45	families. 11
46	46	(3) The credit has a positive impact on the edu-12
47	47	cation and health of children living in poverty. 13
48	48	(4) The credit has a positive economic impact 14
49	49	on local economies and businesses because it puts 15
50	50	more money in the hands of low- and middle-income 16
51	51	working people who spend the money on immediate 17
52	52	needs, such as groceries, school supplies, car repairs, 18
53	53	rent, and health care. 19
54	54	(5) The widening gap between the incomes of 20
55	55	the wealthiest Americans and those of middle- and 21
56	56	lower-income Americans is alarming. 22
57	57	(6) There is an urgent need to address that 23
58	58	gap, including through measures like this legislation 24
59	59	and by raising the Federal minimum wage which to-25
60	60	gether increase the wages of working Americans, 26
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63	63	•HR 905 IH
64	64	widen the path to income stability, and narrow in-1
65	65	come inequality. 2
66	66	SEC. 3. MODIFICATIONS OF THE EARNED INCOME TAX 3
67	67	CREDIT. 4
68	68	(a) I
69	69	NCLUSION OFINDIVIDUALSWITHQUALIFYING 5
70	70	D
71	71	EPENDENTS.— 6
72	72	(1) I
73	73	N GENERAL.—Section 32(c)(1) of the In-7
74	74	ternal Revenue Code of 1986 is amended— 8
75	75	(A) in subparagraph (A), by striking 9
76	76	‘‘qualifying child’’ each place such term appears 10
77	77	and inserting ‘‘qualifying dependent’’, and 11
78	78	(B) by striking subparagraphs (B) and (F) 12
79	79	and by redesignating subparagraphs (C), (D), 13
80	80	and (E) as subparagraphs (B), (C), and (D), 14
81	81	respectively. 15
82	82	(2) Q
83	83	UALIFYING DEPENDENT DEFINED .—Sec-16
84	84	tion 32(c) of such Code is amended by redesignating 17
85	85	paragraphs (3) and (4) as paragraphs (5) and (6), 18
86	86	and by inserting after paragraph (2) the following 19
87	87	new paragraphs: 20
88	88	‘‘(3) Q
89	89	UALIFYING DEPENDENT .— 21
90	90	‘‘(A) I
91	91	N GENERAL.—The term ‘qualifying 22
92	92	dependent’ means, with respect to a taxable 23
93	93	year— 24
94	94	‘‘(i) a qualifying child, 25
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97	97	•HR 905 IH
98	98	‘‘(ii) an aged dependent, or 1
99	99	‘‘(iii) a qualifying individual described 2
100	100	in subparagraph (B) or (C) of section 3
101	101	21(b)(1). 4
102	102	‘‘(B) I
103	103	DENTIFICATION REQUIREMENTS .— 5
104	104	No credit shall be allowed under this section 6
105	105	with respect to a qualifying dependent unless 7
106	106	the taxpayer includes the name, age, and TIN 8
107	107	of the individual on the return of tax for the 9
108	108	taxable year. 10
109	109	‘‘(C) P
110	110	LACE OF ABODE.—The term ‘quali-11
111	111	fying dependent’ shall not include an individual 12
112	112	unless such individual has a principal place of 13
113	113	abode in the United States for more than one- 14
114	114	half of such taxable year. 15
115	115	‘‘(4) A
116	116	GED DEPENDENT .—The term ‘aged de-16
117	117	pendent’ means a dependent for whom a deduction 17
118	118	is allowable under section 151 who has attained the 18
119	119	age of 65 before the close of the taxable year.’’. 19
120	120	(3) C
121	121	ONFORMING AMENDMENTS .— 20
122	122	(A) The tables in paragraphs (1) and (2) 21
123	123	of section 32(b) of such Code are each amend-22
124	124	ed— 23
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127	127	•HR 905 IH
128	128	(i) by striking ‘‘qualifying child’’ each 1
129	129	place it appears and inserting ‘‘qualifying 2
130	130	dependent’’, and 3
131	131	(ii) by striking ‘‘qualifying children’’ 4
132	132	each place it appears and inserting ‘‘quali-5
133	133	fying dependents’’. 6
134	134	(B) Section 32(c)(5) of such Code, as re-7
135	135	designated by this Act, is amended by striking 8
136	136	subparagraphs (C) and (D). 9
137	137	(C) Section 32(m) of such Code is amend-10
138	138	ed by striking ‘‘(c)(3)(D)’’ and inserting 11
139	139	‘‘(c)(3)(B)’’. 12
140	140	(b) I
141	141	NCLUSION OFQUALIFYINGSTUDENTS.— 13
142	142	(1) I
143	143	N GENERAL.—Section 32(c)(1)(A) of such 14
144	144	Code is amended by striking ‘‘or’’ at the end of 15
145	145	clause (i), by striking the period at the end of clause 16
146	146	(ii)(III) and inserting ‘‘, or’’, and by inserting after 17
147	147	clause (ii)(III) the following new clause: 18
148	148	‘‘(iii) any individual who is a quali-19
149	149	fying student.’’. 20
150	150	(2) Q
151	151	UALIFYING STUDENT DEFINED .—Section 21
152	152	32(c)(1) of such Code, as amended by subsection 22
153	153	(a), is further amended by adding at the end the fol-23
154	154	lowing new subparagraph: 24
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157	157	•HR 905 IH
158	158	‘‘(E) QUALIFYING STUDENT .—The term 1
159	159	‘qualifying student’ means, with respect to a 2
160	160	taxable year, an individual who is an eligible 3
161	161	student (as defined in section 25A(b)(3)) with 4
162	162	respect to an institution of higher education (as 5
163	163	defined in section 101 of the Higher Education 6
164	164	Act of 1965) who— 7
165	165	‘‘(i) is not a dependent for whom a 8
166	166	deduction is allowable under section 151 to 9
167	167	another taxpayer for any taxable year be-10
168	168	ginning in the same calendar year as such 11
169	169	taxable year, and 12
170	170	‘‘(ii) either— 13
171	171	‘‘(I) is qualified for a Federal 14
172	172	Pell Grant with respect to the aca-15
173	173	demic year beginning in such taxable 16
174	174	year, or 17
175	175	‘‘(II) has modified adjusted gross 18
176	176	income of less than 250 percent of the 19
177	177	poverty line for the size of the family 20
178	178	involved for the taxable year. 21
179	179	‘‘(F) D
180	180	EFINITIONS.—For purposes of this 22
181	181	subparagraph: 23
182	182	‘‘(i) M
183	183	ODIFIED ADJUSTED GROSS IN -24
184	184	COME.—The term ‘modified adjusted gross 25
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187	187	•HR 905 IH
188	188	income’ means the adjusted gross income 1
189	189	of the taxpayer for the taxable year in-2
190	190	creased by any amount excluded from 3
191	191	gross income under section 911, 931, or 4
192	192	933. 5
193	193	‘‘(ii) P
194	194	OVERTY LINE.— 6
195	195	‘‘(I) I
196	196	N GENERAL.—The term 7
197	197	‘poverty line’ has the meaning given 8
198	198	such term in section 673(2) of the 9
199	199	Community Services Block Grant Act 10
200	200	(42 U.S.C. 9902(2)), including any 11
201	201	revision required by such section. 12
202	202	‘‘(II) F
203	203	AMILY SIZE.—For pur-13
204	204	poses of determining the poverty line 14
205	205	applicable to the taxpayer, the family 15
206	206	size with respect to any taxpayer shall 16
207	207	be equal to the number of individuals 17
208	208	for whom the taxpayer is allowed a 18
209	209	deduction under section 151 (relating 19
210	210	to allowance of deduction for personal 20
211	211	exemptions) for the taxable year.’’. 21
212	212	(3) C
213	213	ONFORMING AMENDMENT .—Section 22
214	214	32(c)(1)(A)(ii) of such Code is amended by inserting 23
215	215	‘‘(other than a qualifying student)’’ after ‘‘any other 24
216	216	individual’’. 25
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219	219	•HR 905 IH
220	220	(c) MINIMUMCREDIT FORSTUDENTS AND FOR INDI-1
221	221	VIDUALSWITHCERTAINQUALIFYINGDEPENDENTS.— 2
222	222	Section 32(a) of such Code is amended by adding at the 3
223	223	end the following new paragraph: 4
224	224	‘‘(3) M
225	225	INIMUM CREDIT FOR STUDENTS AND 5
226	226	FOR INDIVIDUALS WITH CERTAIN QUALIFYING DE -6
227	227	PENDENTS.— 7
228	228	‘‘(A) I
229	229	N GENERAL.—In the case of a quali-8
230	230	fying student, or an eligible individual who has 9
231	231	a specified dependent for the taxable year, the 10
232	232	amount determined under paragraph (1) (be-11
233	233	fore the application of paragraph (2)) and the 12
234	234	amount determined under paragraph (2)(A) 13
235	235	shall not be less than $1,200. 14
236	236	‘‘(B) S
237	237	PECIFIED DEPENDENT .—For pur-15
238	238	poses of this paragraph, the term ‘specified de-16
239	239	pendent’ means any qualifying dependent (other 17
240	240	than a qualifying child who has attained the 18
241	241	age of 7 before the close of the taxable year).’’. 19
242	242	(d) M
243	243	ONTHLYPAYMENT.—Section 32 of such Code, 20
244	244	as amended by this Act, is further amended by adding 21
245	245	at the end the following new subsection: 22
246	246	‘‘(n) M
247	247	ONTHLYPAYMENT.— 23
248	248	‘‘(1) I
249	249	N GENERAL.—In the case of an individual 24
250	250	who is entitled to a refund relating to an overpay-25
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253	253	•HR 905 IH
254	254	ment of tax imposed by this subtitle that exceeds 1
255	255	$240 (but only to the extent such refund does not 2
256	256	exceed the credit allowed under this section) such in-3
257	257	dividual may elect to have the Secretary, in lieu of 4
258	258	such refund, make a payment equal to— 5
259	259	‘‘(A)
260	260	2
261	261	⁄13of such refund (with interest) 6
262	262	during the earlier of the first practicable month 7
263	263	or the second month that begins after the date 8
264	264	the return was filed, and 9
265	265	‘‘(B)
266	266	1
267	267	⁄13of such refund (with interest) 10
268	268	during each of the 11 months subsequent to the 11
269	269	month determined under subparagraph (A). 12
270	270	‘‘(2) M
271	271	ETHOD OF PAYMENT .—A payment made 13
272	272	under this subsection shall be made by direct deposit 14
273	273	or by general-use prepaid card, or by such other 15
274	274	method (other than by check) as the Secretary may 16
275	275	prescribe and the taxpayer may elect. 17
276	276	‘‘(3) O
277	277	NE-TIME INCREASE.—The first time an 18
278	278	individual receives a payment under this subsection, 19
279	279	paragraph (1)(A) shall be applied by substituting 20
280	280	‘
281	281	4
282	282	⁄13’ for ‘
283	283	2
284	284	⁄13’.’’. 21
285	285	(e) S
286	286	PECIALRULE FORNEWLOW-INCOMEPAR-22
287	287	ENTS.—Section 32 of such Code, as amended by this Act, 23
288	288	is further amended by adding at the end the following new 24
289	289	subsection: 25
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292	292	•HR 905 IH
293	293	‘‘(o) SPECIALRULE FORNEWLOW-INCOMEPAR-1
294	294	ENTS.— 2
295	295	‘‘(1) I
296	296	N GENERAL.—In the case of an individual 3
297	297	who— 4
298	298	‘‘(A) is eligible for payments under sub-5
299	299	section (o)(1) with respect to a refund for a 6
300	300	taxable year, and 7
301	301	‘‘(B) has a qualifying child who is born or 8
302	302	adopted during the following taxable year and 9
303	303	not later than the penultimate month for which 10
304	304	the taxpayer is eligible for such payments, 11
305	305	the amount of any such payments made after such 12
306	306	birth or adoption shall be adjusted to the amount 13
307	307	such payments would be if such qualifying child were 14
308	308	a qualifying child of the taxpayer under this section 15
309	309	for the taxable year to which such payments relate. 16
310	310	‘‘(2) Q
311	311	UALIFYING CHILD DETERMINATION .— 17
312	312	For purposes of determining if a child is a quali-18
313	313	fying child for purposes of this subsection, sub-19
314	314	section (m) shall be applied by inserting ‘or, in the 20
315	315	case of an adoption, such other identifying informa-21
316	316	tion as specified by the Secretary’ before the period 22
317	317	at the end.’’. 23
318	318	(f) A
319	319	GE OFELIGIBLEINDIVIDUALSWITHOUTDE-24
320	320	PENDENTS.—Section 32(c)(1)(A)(ii)(II) of such Code is 25
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323	323	•HR 905 IH
324	324	amended by striking ‘‘age 25 but not attained age 65’’ 1
325	325	and inserting ‘‘age 18’’. 2
326	326	(g) E
327	327	FFECTIVEDATE.—The amendments made by 3
328	328	this section shall apply to taxable years beginning after 4
329	329	the date of the enactment of this Act. 5
330	330	SEC. 4. RETURN PREPARATION PROGRAMS FOR LOW-IN-6
331	331	COME TAXPAYERS. 7
332	332	(a) I
333	333	NGENERAL.—Chapter 77 of such Code is 8
334	334	amended by inserting after section 7526A the following 9
335	335	new section: 10
336	336	‘‘SEC. 7526B. RETURN PREPARATION PROGRAMS FOR LOW- 11
337	337	INCOME TAXPAYERS. 12
338	338	‘‘(a) E
339	339	STABLISHMENT OF VOLUNTEERINCOMETAX 13
340	340	A
341	341	SSISTANCEMATCHINGGRANTPROGRAM.—The Sec-14
342	342	retary, through the Internal Revenue Service, shall estab-15
343	343	lish a Community Volunteer Income Tax Assistance 16
344	344	Matching Grant Program under which the Secretary may, 17
345	345	subject to the availability of appropriated funds, make 18
346	346	grants to provide matching funds for the development, ex-19
347	347	pansion, or continuation of qualified return preparation 20
348	348	programs assisting low-income taxpayers and members of 21
349	349	underserved populations. 22
350	350	‘‘(b) U
351	351	SE OFFUNDS.— 23
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354	354	•HR 905 IH
355	355	‘‘(1) IN GENERAL.—Qualified return prepara-1
356	356	tion programs may use grants received under this 2
357	357	section for— 3
358	358	‘‘(A) ordinary and necessary costs associ-4
359	359	ated with program operation in accordance with 5
360	360	cost principles under the applicable Office of 6
361	361	Management and Budget circular, including— 7
362	362	‘‘(i) wages or salaries of persons co-8
363	363	ordinating the activities of the program, 9
364	364	‘‘(ii) developing training materials, 10
365	365	conducting training, and performing qual-11
366	366	ity reviews of the returns prepared under 12
367	367	the program, 13
368	368	‘‘(iii) equipment purchases, and 14
369	369	‘‘(iv) vehicle-related expenses associ-15
370	370	ated with remote or rural tax preparation 16
371	371	services, 17
372	372	‘‘(B) outreach and educational activities 18
373	373	described in subsection (c)(2)(B), and 19
374	374	‘‘(C) services related to financial education 20
375	375	and capability, asset development, and the es-21
376	376	tablishment of savings accounts in connection 22
377	377	with tax return preparation. 23
378	378	‘‘(2) U
379	379	SE OF GRANTS FOR OVERHEAD EX -24
380	380	PENSES PROHIBITED.—No grant received under this 25
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383	383	•HR 905 IH
384	384	section may be used for overhead expenses that are 1
385	385	not directly related to a qualified return preparation 2
386	386	program. 3
387	387	‘‘(c) A
388	388	PPLICATION.— 4
389	389	‘‘(1) I
390	390	N GENERAL.—Each applicant for a grant 5
391	391	under this section shall submit an application to the 6
392	392	Secretary at such time, in such manner, and con-7
393	393	taining such information as the Secretary may rea-8
394	394	sonably require. 9
395	395	‘‘(2) P
396	396	RIORITY.—In awarding grants under this 10
397	397	section, the Secretary shall give priority to applica-11
398	398	tions which demonstrate— 12
399	399	‘‘(A) assistance to low-income taxpayers, 13
400	400	with emphasis on outreach to, and services for, 14
401	401	such taxpayers, 15
402	402	‘‘(B) taxpayer outreach and educational 16
403	403	activities relating to eligibility and availability 17
404	404	of income supports available through the Inter-18
405	405	nal Revenue Code of 1986, including the earned 19
406	406	income tax credit, and 20
407	407	‘‘(C) specific outreach and focus on one or 21
408	408	more underserved populations. 22
409	409	‘‘(3) A
410	410	MOUNTS TAKEN INTO ACCOUNT .—In de-23
411	411	termining matching grants under this section, the 24
412	412	Secretary shall only take into account amounts pro-25
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415	415	•HR 905 IH
416	416	vided by the qualified return preparation program 1
417	417	for expenses described in subsection (b). 2
418	418	‘‘(d) A
419	419	CCURACYREVIEWS.— 3
420	420	‘‘(1) I
421	421	N GENERAL.—The Secretary shall estab-4
422	422	lish procedures for, and shall conduct, periodic site 5
423	423	visits of qualified return preparation programs oper-6
424	424	ating under a grant under this section— 7
425	425	‘‘(A) to ensure such programs are carrying 8
426	426	out the purposes of this section, and 9
427	427	‘‘(B) to determine the return preparation 10
428	428	accuracy rate of the program. 11
429	429	‘‘(2) A
430	430	DDITIONAL REQUIREMENTS FOR GRANT 12
431	431	RECIPIENTS NOT MEETING MINIMUM STANDARDS .— 13
432	432	In the case of any qualified return preparation pro-14
433	433	gram which— 15
434	434	‘‘(A) is awarded a grant under this section, 16
435	435	and 17
436	436	‘‘(B) is subsequently determined— 18
437	437	‘‘(i) to have a less than 90 percent av-19
438	438	erage accuracy rate for preparation of tax 20
439	439	returns, or 21
440	440	‘‘(ii) not to be otherwise carrying out 22
441	441	the purposes of this section, 23
442	442	such program shall not be eligible for any addi-24
443	443	tional grants under this section unless such pro-25
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446	446	•HR 905 IH
447	447	gram provides sufficient documentation of cor-1
448	448	rective measures established to address any 2
449	449	such deficiencies determined. 3
450	450	‘‘(e) D
451	451	EFINITIONS.—For purposes of this section— 4
452	452	‘‘(1) Q
453	453	UALIFIED RETURN PREPARATION PRO -5
454	454	GRAM.—The term ‘qualified return preparation pro-6
455	455	gram’ means any program— 7
456	456	‘‘(A) which provides assistance to individ-8
457	457	uals, not less than 90 percent of whom are low- 9
458	458	income taxpayers, in preparing and filing Fed-10
459	459	eral income tax returns, 11
460	460	‘‘(B) which is administered by a qualified 12
461	461	entity, 13
462	462	‘‘(C) in which all volunteers who assist in 14
463	463	the preparation of Federal income tax returns 15
464	464	meet the training requirements prescribed by 16
465	465	the Secretary, and 17
466	466	‘‘(D) which uses a quality review process 18
467	467	which reviews 100 percent of all returns. 19
468	468	‘‘(2) Q
469	469	UALIFIED ENTITY.— 20
470	470	‘‘(A) I
471	471	N GENERAL.—The term ‘qualified 21
472	472	entity’ means any entity which— 22
473	473	‘‘(i) is an eligible organization, 23
474	474	‘‘(ii) is in compliance with Federal tax 24
475	475	filing and payment requirements, 25
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479	479	‘‘(iii) is not debarred or suspended 1
480	480	from Federal contracts, grants, or coopera-2
481	481	tive agreements, and 3
482	482	‘‘(iv) agrees to provide documentation 4
483	483	to substantiate any matching funds pro-5
484	484	vided pursuant to the grant program under 6
485	485	this section. 7
486	486	‘‘(B) E
487	487	LIGIBLE ORGANIZATION.—The term 8
488	488	‘eligible organization’ means— 9
489	489	‘‘(i) an institution of higher education 10
490	490	which is described in section 102 (other 11
491	491	than subsection (a)(1)(C) thereof) of the 12
492	492	Higher Education Act of 1965 (20 U.S.C. 13
493	493	1002), as in effect on the date of the en-14
494	494	actment of this section, and which has not 15
495	495	been disqualified from participating in a 16
496	496	program under title IV of such Act, 17
497	497	‘‘(ii) an organization described in sec-18
498	498	tion 501(c) and exempt from tax under 19
499	499	section 501(a), 20
500	500	‘‘(iii) a local government agency, in-21
501	501	cluding— 22
502	502	‘‘(I) a county or municipal gov-23
503	503	ernment agency, and 24
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506	506	•HR 905 IH
507	507	‘‘(II) an Indian tribe, as defined 1
508	508	in section 4(13) of the Native Amer-2
509	509	ican Housing Assistance and Self-De-3
510	510	termination Act of 1996 (25 U.S.C. 4
511	511	4103(13)), including any tribally des-5
512	512	ignated housing entity (as defined in 6
513	513	section 4(22) of such Act (25 U.S.C. 7
514	514	4103(22))), tribal subsidiary, subdivi-8
515	515	sion, or other wholly owned tribal en-9
516	516	tity, 10
517	517	‘‘(iv) a local, State, regional, or na-11
518	518	tional coalition (with one lead organization 12
519	519	which meets the eligibility requirements of 13
520	520	clause (i), (ii), or (iii) acting as the appli-14
521	521	cant organization), or 15
522	522	‘‘(v) in the case of a targeted popu-16
523	523	lation or community with respect to which 17
524	524	no organizations described in the preceding 18
525	525	clauses are available— 19
526	526	‘‘(I) a State government agency, 20
527	527	or 21
528	528	‘‘(II) an office providing Cooper-22
529	529	ative Extension services (as estab-23
530	530	lished at the land-grant colleges and 24
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533	533	•HR 905 IH
534	534	universities under the Smith-Lever 1
535	535	Act of May 8, 1914). 2
536	536	‘‘(3) L
537	537	OW-INCOME TAXPAYERS.—The term ‘low- 3
538	538	income taxpayer’ means a taxpayer whose income 4
539	539	for the taxable year does not exceed an amount 5
540	540	equal to the completed phaseout amount under sec-6
541	541	tion 32(b) for a married couple filing a joint return 7
542	542	with 3 or more qualifying children, as determined in 8
543	543	a revenue procedure or other published guidance. 9
544	544	‘‘(4) U
545	545	NDERSERVED POPULATION .—The term 10
546	546	‘underserved population’ includes populations of per-11
547	547	sons with disabilities, persons with limited English 12
548	548	proficiency, Native Americans, individuals living in 13
549	549	rural areas, members of the Armed Forces and their 14
550	550	spouses, and the elderly. 15
551	551	‘‘(f) S
552	552	PECIALRULES ANDLIMITATIONS.— 16
553	553	‘‘(1) D
554	554	URATION OF GRANTS.—Upon application 17
555	555	of a qualified return preparation program, the Sec-18
556	556	retary is authorized to award a multi-year grant not 19
557	557	to exceed 3 years. 20
558	558	‘‘(2) A
559	559	GGREGATE LIMITATION .—Unless other-21
560	560	wise provided by specific appropriation, the Sec-22
561	561	retary shall not allocate more than $30,000,000 per 23
562	562	fiscal year (exclusive of costs of administering the 24
563	563	program) to grants under this section. 25
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566	566	•HR 905 IH
567	567	‘‘(g) PROMOTION ANDREFERRAL.— 1
568	568	‘‘(1) P
569	569	ROMOTION.—The Secretary shall pro-2
570	570	mote tax preparation through qualified return prepa-3
571	571	ration programs through the use of mass commu-4
572	572	nications, referrals, and other means. 5
573	573	‘‘(2) I
574	574	NTERNAL REVENUE SERVICE REFER -6
575	575	RALS.—The Secretary may refer taxpayers to quali-7
576	576	fied return preparation programs receiving grants 8
577	577	under this section. 9
578	578	‘‘(3) V
579	579	ITA GRANTEE REFERRAL .—Qualified re-10
580	580	turn preparation programs receiving a grant under 11
581	581	this section are encouraged to refer, as appropriate, 12
582	582	to local or regional Low-Income Taxpayer Clinics in-13
583	583	dividuals who are eligible for such clinics.’’. 14
584	584	(b) C
585	585	LERICALAMENDMENT.—The table of sections 15
586	586	for chapter 77 is amended by inserting after the item re-16
587	587	lating to section 7526A the following new item: 17
588	588	‘‘7526B. Return preparation programs for low-income taxpayers.’’.
589	589	(c) EFFECTIVEDATE.—The amendments made by 18
590	590	this section shall apply with respect to taxable years begin-19
591	591	ning after the date of enactment of this Act. 20
592	592	Æ
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