Title 26 — Internal Revenue Code — § 24. Child tax credit
Summary
This page reproduces § 24 of Title 26 (Internal Revenue Code), the child tax credit, from the United States Code. The section defines a qualifying child as a qualifying child of the taxpayer who has not attained age 17, sets limitations based on adjusted gross income, and requires a social security number for the credit. For taxable years beginning after December 31, 2020, and before January 1, 2022, it makes the credit refundable and substitutes $3,000, or $3,600 for a qualifying child who has not attained age 6, with thresholds including $150,000 in the case of a joint return. The credit is reduced by advance payments made under section 7527A.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
§ 24 TITLE 26—INTERNAL REVENUE CODE Page 80
‘‘(B) any property acquired before such date of en-
actment, or
‘‘(C) any item of income, loss, deduction, or credit
taken into account before such date of enactment,
and
‘‘(2) the treatment of such transaction, property, or
item under such provision would (without regard to
the amendments or repeals made by such subsection)
affect the liability for tax for periods ending after
such date of enactment,
nothing in the amendments or repeals made by this
section [see Tables for classification] shall be construed
to affect the treatment of such transaction, property,
or item for purposes of determining liability for tax for
periods ending after such date of enactment.’’
EXPENSES PAID OR INCURRED BEFORE 2002
Pub. L. 107–147, title IV, § 411(c)(1)(F), Mar. 9, 2002, 116
Stat. 45, provided that: ‘‘Expenses paid or incurred dur-
ing any taxable year beginning before January 1, 2002,
may be taken into account in determining the credit
under section 23 of the Internal Revenue Code of 1986
only to the extent the aggregate of such expenses does
not exceed the applicable limitation under section
23(b)(1) of such Code as in effect on the day before the
date of the enactment of the Economic Growth and Tax
Relief Reconciliation Act of 2001 [June 7, 2001].’’
TAX CREDIT AND GROSS INCOME EXCLUSION STUDY AND
REPORT
Pub. L. 104–188, title I, § 1807(d), Aug. 20, 1996, 110 Stat.
1903, provided that: ‘‘The Secretary of the Treasury
shall study the effect on adoptions of the tax credit and
gross income exclusion established by the amendments
made by this section [enacting this section and section
137 of this title, renumbering former section 137 of this
title as section 138, and amending sections 25, 86, 135,
219, 469, and 1016 of this title] and shall submit a report
regarding the study to the Committee on Finance of
the Senate and the Committee on Ways and Means of
the House of Representatives not later than January 1,
2000.’’
§ 24. Child tax credit
(a) Allowance of credit
There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year
with respect to each qualifying child of the tax-
payer for which the taxpayer is allowed a deduc-
tion under section 151 an amount equal to $1,000.
(b) Limitations
(1) Limitation based on adjusted gross income
The amount of the credit allowable under
subsection (a) shall be reduced (but not below
zero) by $50 for each $1,000 (or fraction thereof)
by which the taxpayer’s modified adjusted
gross income 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 sec-
tion 911, 931, or 933.
(2) Threshold amount
For purposes of paragraph (1), the term
‘‘threshold amount’’ means—
(A) $110,000 in the case of a joint return,
(B) $75,000 in the case of an individual who
is not married, and
(C) $55,000 in the case of a married indi-
vidual filing a separate return.
For purposes of this paragraph, marital status
shall be determined under section 7703.
(c) Qualifying child
For purposes of this section—
(1) In general
The term ‘‘qualifying child’’ means a quali-
fying child of the taxpayer (as defined in sec-
tion 152(c)) who has not attained age 17.
(2) Exception for certain noncitizens
The term ‘‘qualifying child’’ shall not in-
clude any individual who would not be a de-
pendent if subparagraph (A) of section 152(b)(3)
were applied without regard to all that follows
‘‘resident of the United States’’.
(d) Portion of credit refundable
(1) In general
The aggregate credits allowed to a taxpayer
under subpart C shall be increased by the less-
er of—
(A) the credit which would be allowed
under this section without regard to this
subsection and the limitation under section
26(a) or
(B) the amount by which the aggregate
amount of credits allowed by this subpart
(determined without regard to this sub-
section) would increase if the limitation im-
posed by section 26(a) were increased by the
greater of—
(i) 15 percent of so much of the tax-
payer’s earned income (within the mean-
ing of section 32) which is taken into ac-
count in computing taxable income for the
taxable year as exceeds $3,000, or
(ii) in the case of a taxpayer with 3 or
more qualifying children, the excess (if
any) of—
(I) the taxpayer’s social security taxes
for the taxable year, over
(II) the credit allowed under section 32
for the taxable year.
The amount of the credit allowed under this
subsection shall not be treated as a credit al-
lowed under this subpart and shall reduce the
amount of credit otherwise allowable under
subsection (a) without regard to section 26(a).
For purposes of subparagraph (B), any amount
excluded from gross income by reason of sec-
tion 112 shall be treated as earned income
which is taken into account in computing tax-
able income for the taxable year.
(2) Social security taxes
For purposes of paragraph (1)—
(A) In general
The term ‘‘social security taxes’’ means,
with respect to any taxpayer for any taxable
year—
(i) the amount of the taxes imposed by
sections 3101 and 3201(a) on amounts re-
ceived by the taxpayer during the calendar
year in which the taxable year begins,
(ii) 50 percent of the taxes imposed by
section 1401 on the self-employment in-
come of the taxpayer for the taxable year,
and
(iii) 50 percent of the taxes imposed by
section 3211(a) on amounts received by the
taxpayer during the calendar year in
which the taxable year begins.
Page 81 TITLE 26—INTERNAL REVENUE CODE § 24
(B) Coordination with special refund of so-
cial security taxes
The term ‘‘social security taxes’’ shall not
include any taxes to the extent the taxpayer
is entitled to a special refund of such taxes
under section 6413(c).
(C) Special rule
Any amounts paid pursuant to an agree-
ment under section 3121(l) (relating to agree-
ments entered into by American employers
with respect to foreign affiliates) which are
equivalent to the taxes referred to in sub-
paragraph (A)(i) shall be treated as taxes re-
ferred to in such subparagraph.
(3) Exception for taxpayers excluding foreign
earned income
Paragraph (1) shall not apply to any tax-
payer for any taxable year if such taxpayer
elects to exclude any amount from gross in-
come under section 911 for such taxable year.
(e) Identification requirements
(1) Qualifying child identification requirement
No credit shall be allowed under this section
to a taxpayer with respect to any qualifying
child unless the taxpayer includes the name
and taxpayer identification number of such
qualifying child on the return of tax for the
taxable year and such taxpayer identification
number was issued on or before the due date
for filing such return.
(2) Taxpayer identification requirement
No credit shall be allowed under this section
if the taxpayer identification number of the
taxpayer was issued after the due date for fil-
ing the return for the taxable year.
(f) 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.
(g) Restrictions on taxpayers who improperly
claimed credit in prior year
(1) Taxpayers making prior fraudulent or reck-
less claims
(A) In general
No credit shall be allowed under this sec-
tion for any taxable year in the disallowance
period.
(B) Disallowance period
For purposes of subparagraph (A), the dis-
allowance period is—
(i) the period of 10 taxable years after
the most recent taxable year for which
there was a final determination that the
taxpayer’s claim of credit under this sec-
tion was due to fraud, and
(ii) the period of 2 taxable years after the
most recent taxable year for which there
was a final determination that the tax-
payer’s claim of credit under this section
was due to reckless or intentional dis-
regard of rules and regulations (but not
due to fraud).
(2) Taxpayers making improper prior claims
In the case of a taxpayer who is denied cred-
it under this section for any taxable year as a
result of the deficiency procedures under sub-
chapter B of chapter 63, no credit shall be al-
lowed under this section for any subsequent
taxable year unless the taxpayer provides such
information as the Secretary may require to
demonstrate eligibility for such credit.
(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 (7).
(2) Credit amount
Subsection (a) shall be applied by sub-
stituting ‘‘$2,000’’ for ‘‘$1,000’’.
(3) Limitation
In lieu of the amount determined under sub-
section (b)(2), the threshold amount shall be
$400,000 in the case of a joint return ($200,000 in
any other case).
(4) Partial credit allowed for certain other de-
pendents
(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 sub-
section (c).
(B) Exception for certain noncitizens
Subparagraph (A) shall not apply with re-
spect 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’’.
(C) Certain qualifying children
In the case of any qualifying child with re-
spect to whom a credit is not allowed under
this section by reason of paragraph (7), such
child shall be treated as a dependent to
whom subparagraph (A) applies.
(5) Maximum amount of refundable credit
(A) In general
The amount determined under subsection
(d)(1)(A) with respect to any qualifying child
shall not exceed $1,400, and such subsection
shall be applied without regard to paragraph
(4) of this subsection.
(B) Adjustment for inflation
In the case of a taxable year beginning
after 2018, the $1,400 amount in subparagraph
(A) shall be increased by an amount equal
to—
(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar
year in which the taxable year begins, de-
termined by substituting ‘‘2017’’ for ‘‘2016’’
in subparagraph (A)(ii) thereof.
If any increase under this clause is not a
multiple of $100, such increase shall be
rounded to the next lowest multiple of $100.
(6) Earned income threshold for refundable
credit
Subsection (d)(1)(B)(i) shall be applied by
substituting ‘‘$2,500’’ for ‘‘$3,000’’.
§ 24 TITLE 26—INTERNAL REVENUE CODE Page 82
(7) Social security number required
No credit shall be allowed under this section
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—
(A) to a citizen of the United States or
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 Secu-
rity Act, and
(B) before the due date for such return.
(i) Special rules for 2021
In the case of any taxable year beginning after
December 31, 2020, and before January 1, 2022—
(1) Refundable credit
If the taxpayer (in the case of a joint return,
either spouse) has a principal place of abode in
the United States (determined as provided in
section 32) for more than one-half of the tax-
able year or is a bona fide resident of Puerto
Rico (within the meaning of section 937(a)) for
such taxable year—
(A) subsection (d) shall not apply, and
(B) so much of the credit determined under
subsection (a) (after application of subpara-
graph (A)) as does not exceed the amount of
such credit which would be so determined
without regard to subsection (h)(4) shall be
allowed under subpart C (and not allowed
under this subpart).
(2) 17-year-olds eligible for treatment as quali-
fying children
This section shall be applied—
(A) by substituting ‘‘age 18’’ for ‘‘age 17’’
in subsection (c)(1), and
(B) by substituting ‘‘described in sub-
section (c) (determined after the application
of subsection (i)(2)(A))’’ for ‘‘described in
subsection (c)’’ in subsection (h)(4)(A).
(3) Credit amount
Subsection (h)(2) shall not apply and sub-
section (a) shall be applied by substituting
‘‘$3,000 ($3,600 in the case of a qualifying child
who has not attained age 6 as of the close of
the calendar year in which the taxable year of
the taxpayer begins)’’ for ‘‘$1,000’’.
(4) Reduction of increased credit amount based
on modified adjusted gross income
(A) In general
The amount of the credit allowable under
subsection (a) (determined without regard to
subsection (b)) shall be reduced by $50 for
each $1,000 (or fraction thereof) by which the
taxpayer’s modified adjusted gross income
(as defined in subsection (b)) exceeds the ap-
plicable threshold amount.
(B) Applicable threshold amount
For purposes of this paragraph, the term
‘‘applicable threshold amount’’ means—
(i) $150,000, in the case of a joint return
or surviving spouse (as defined in section
2(a)) ,1
(ii) $112,500, in the case of a head of
household (as defined in section 2(b)), and
(iii) $75,000, in any other case.
(C) Limitation on reduction
(i) In general
The amount of the reduction under sub-
paragraph (A) shall not exceed the lesser
of—
(I) the applicable credit increase
amount, or
(II) 5 percent of the applicable phase-
out threshold range.
(ii) Applicable credit increase amount
For purposes of this subparagraph, the
term ‘‘applicable credit increase amount’’
means the excess (if any) of—
(I) the amount of the credit allowable
under this section for the taxable year
determined without regard to this para-
graph and subsection (b), over
(II) the amount of such credit as so de-
termined and without regard to para-
graph (3).
(iii) Applicable phaseout threshold range
For purposes of this subparagraph, the
term ‘‘applicable phaseout threshold
range’’ means the excess of—
(I) the threshold amount applicable to
the taxpayer under subsection (b) (deter-
mined after the application of subsection
(h)(3)), over
(II) the applicable threshold amount
applicable to the taxpayer under this
paragraph.
(D) Coordination with limitation on overall
credit
Subsection (b) shall be applied by sub-
stituting ‘‘the credit allowable under sub-
section (a) (determined after the application
of subsection (i)(4)(A)’’ for ‘‘the credit allow-
able under subsection (a)’’.
(j) Reconciliation of credit and advance credit
(1) In general
The amount of the credit allowed under this
section to any taxpayer for any taxable year
shall be reduced (but not below zero) by the
aggregate amount of payments made under
section 7527A to such taxpayer during such
taxable year. 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).
(2) Excess advance payments
(A) In general
If the aggregate amount of payments
under section 7527A to the taxpayer during
the taxable year exceeds the amount of the
credit allowed under this section to such
taxpayer for such taxable year (determined
without regard to paragraph (1)), the tax im-
posed by this chapter for such taxable year
1 So in original.
Page 83 TITLE 26—INTERNAL REVENUE CODE § 24
shall be increased by the amount of such ex-
cess. Any failure to so increase the tax shall
be treated as arising out of a mathematical
or clerical error and assessed according to
section 6213(b)(1).
(B) Safe harbor based on modified adjusted
gross income
(i) In general
In the case of a taxpayer whose modified
adjusted gross income (as defined in sub-
section (b)) for the taxable year does not
exceed 200 percent of the applicable income
threshold, the amount of the increase de-
termined under subparagraph (A) with re-
spect to such taxpayer for such taxable
year shall be reduced (but not below zero)
by the safe harbor amount.
(ii) Phase out of safe harbor amount
In the case of a taxpayer whose modified
adjusted gross income (as defined in sub-
section (b)) for the taxable year exceeds
the applicable income threshold, the safe
harbor amount otherwise in effect under
clause (i) shall be reduced by the amount
which bears the same ratio to such amount
as such excess bears to the applicable in-
come threshold.
(iii) Applicable income threshold
For purposes of this subparagraph, the
term ‘‘applicable income threshold’’
means—
(I) $60,000 in the case of a joint return
or surviving spouse (as defined in section
2(a)),
(II) $50,000 in the case of a head of
household, and
(III) $40,000 in any other case.
(iv) Safe harbor amount
For purposes of this subparagraph, the
term ‘‘safe harbor amount’’ means, with
respect to any taxable year, the product
of—
(I) $2,000, multiplied by
(II) the excess (if any) of the number of
qualified children taken into account in
determining the annual advance amount
with respect to the taxpayer under sec-
tion 7527A with respect to months begin-
ning in such taxable year, over the num-
ber of qualified children taken into ac-
count in determining the credit allowed
under this section for such taxable year.
(k) Application of credit in possessions
(1) Mirror code possessions
(A) In general
The Secretary shall pay to each possession
of the United States with a mirror code tax
system amounts equal to the loss (if any) to
that possession by reason of the application
of this section (determined without regard
to this subsection) with respect to taxable
years beginning after 2020. Such amounts
shall be determined by the Secretary based
on information provided by the government
of the respective possession.
(B) Coordination with credit allowed against
United States income taxes
No credit shall be allowed under this sec-
tion for any taxable year to any individual
to whom a credit is allowable against taxes
imposed by a possession of the United States
with a mirror code tax system by reason of
the application of this section in such pos-
session for such taxable year.
(C) Mirror code tax system
For purposes of this paragraph, the term
‘‘mirror code tax system’’ means, with re-
spect to any possession of the United States,
the income tax system of such possession if
the income tax liability of the residents of
such possession under such system is deter-
mined by reference to the income tax laws of
the United States as if such possession were
the United States.
(2) Puerto Rico
(A) Application to taxable years in 2021
(i) For application of refundable credit to
residents of Puerto Rico, see subsection
(i)(1).
(ii) For nonapplication of advance pay-
ment to residents of Puerto Rico, see section
7527A(e)(4)(A).
(B) Application to taxable years after 2021
In the case of any bona fide resident of
Puerto Rico (within the meaning of section
937(a)) for any taxable year beginning after
December 31, 2021—
(i) the credit determined under this sec-
tion shall be allowable to such resident,
and
(ii) subsection (d)(1)(B)(ii) shall be ap-
plied without regard to the phrase ‘‘in the
case of a taxpayer with 3 or more quali-
fying children’’.
(3) American Samoa
(A) In general
The Secretary shall pay to American
Samoa amounts estimated by the Secretary
as being equal to the aggregate benefits that
would have been provided to residents of
American Samoa by reason of the applica-
tion of this section for taxable years begin-
ning after 2020 if the provisions of this sec-
tion had been in effect in American Samoa
(applied as if American Samoa were the
United States and without regard to the ap-
plication of this section to bona fide resi-
dents of Puerto Rico under subsection (i)(1)).
(B) Distribution requirement
Subparagraph (A) shall not apply unless
American Samoa has a plan, which has been
approved by the Secretary, under which
American Samoa will promptly distribute
such payments to its residents.
(C) Coordination with credit allowed against
United States income taxes
(i) In general
In the case of a taxable year with respect
to which a plan is approved under subpara-
graph (B), this section (other than this
subsection) shall not apply to any indi-
vidual eligible for a distribution under
such plan.
§ 24 TITLE 26—INTERNAL REVENUE CODE Page 84
(ii) Application of section in event of ab-
sence of approved plan
In the case of a taxable year with respect
to which a plan is not approved under sub-
paragraph (B)—
(I) if such taxable year begins in 2021,
subsection (i)(1) shall be applied by sub-
stituting ‘‘bona fide resident of Puerto
Rico or American Samoa’’ for ‘‘bona fide
resident of Puerto Rico’’, and
(II) if such taxable year begins after
December 31, 2021, rules similar to the
rules of paragraph (2)(B) shall apply with
respect to bona fide residents of Amer-
ican Samoa (within the meaning of sec-
tion 937(a)).
(4) Treatment of payments
For purposes of section 1324 of title 31,
United States Code, the payments under this
subsection shall be treated in the same man-
ner as a refund due from a credit provision re-
ferred to in subsection (b)(2) of such section.
(Added Pub. L. 105–34, title I, § 101(a), Aug. 5,
1997, 111 Stat. 796; amended Pub. L. 105–206, title
VI, § 6003(a), July 22, 1998, 112 Stat. 790; Pub. L.
105–277, div. J, title II, § 2001(b), Oct. 21, 1998, 112
Stat. 2681–901; Pub. L. 106–170, title V, § 501(b)(1),
Dec. 17, 1999, 113 Stat. 1919; Pub. L. 107–16, title
II, §§ 201(a)–(b)(2)(C), (c)(1), (2), (d), 202(f)(2)(B),
title VI, § 618(b)(2)(A), June 7, 2001, 115 Stat.
45–47, 49, 108; Pub. L. 107–90, title II, § 204(e)(1),
Dec. 21, 2001, 115 Stat. 893; Pub. L. 107–147, title
IV, §§ 411(b), 417(23)(A), Mar. 9, 2002, 116 Stat. 45,
57; Pub. L. 108–27, title I, § 101(a), May 28, 2003,
117 Stat. 753; Pub. L. 108–311, title I, §§ 101(a),
102(a), 104(a), title II, § 204, title IV, § 408(b)(4),
Oct. 4, 2004, 118 Stat. 1167, 1168, 1176, 1192; Pub. L.
109–135, title IV, § 402(i)(3)(B), Dec. 21, 2005, 119
Stat. 2613; Pub. L. 110–172, § 11(c)(1), Dec. 29, 2007,
121 Stat. 2488; Pub. L. 110–343, div. B, title I,
§ 106(e)(2)(B), title II, § 205(d)(1)(A), div. C, title V,
§ 501(a), Oct. 3, 2008, 122 Stat. 3817, 3838, 3876; Pub.
L. 110–351, title V, § 501(c)(1), Oct. 7, 2008, 122
Stat. 3979; Pub. L. 111–5, div. B, title I, §§ 1003(a),
1004(b)(1), 1142(b)(1)(A), 1144(b)(1)(A), Feb. 17,
2009, 123 Stat. 313, 314, 330, 332; Pub. L. 111–148,
title X, § 10909(b)(2)(A), (c), Mar. 23, 2010, 124
Stat. 1023; Pub. L. 111–312, title I, §§ 101(b)(1),
103(b), Dec. 17, 2010, 124 Stat. 3298, 3299; Pub. L.
112–240, title I, §§ 103(b), 104(c)(2)(B), Jan. 2, 2013,
126 Stat. 2319, 2321; Pub. L. 113–295, div. A, title
II, § 209(a), Dec. 19, 2014, 128 Stat. 4028; Pub. L.
114–27, title VIII, § 807(a), June 29, 2015, 129 Stat.
418; Pub. L. 114–113, div. Q, title I, § 101(a), (b),
title II, §§ 205(a), (b), 208(a)(1), Dec. 18, 2015, 129
Stat. 3044, 3081, 3083; Pub. L. 115–97, title I,
§ 11022(a), Dec. 22, 2017, 131 Stat. 2073; Pub. L.
115–141, div. U, title I, § 101(i)(1), title IV,
§ 401(a)(3), Mar. 23, 2018, 132 Stat. 1162, 1184; Pub.
L. 117–2, title IX, §§ 9611(a), (b)(2), 9612(a), Mar.
11, 2021, 135 Stat. 144, 148, 150.)
INFLATION ADJUSTED ITEMS FOR CERTAIN YEARS
For inflation adjustment of certain items in
this section, see Revenue Procedures listed in a
table under section 1 of this title.
Editorial Notes
REFERENCES IN TEXT
Section 205(c)(2)(B)(i) of the Social Security Act, re-
ferred to in subsec. (h)(7)(A), is classified to section
405(c)(2)(B)(i) of Title 42, The Public Health and Wel-
fare.
PRIOR PROVISIONS
A prior section 24, added Pub. L. 92–178, title VII,
§ 701(a), Dec. 10, 1971, 85 Stat. 560, § 41; amended Pub. L.
93–625, §§ 11(a)–(c), (e), 12(a), Jan. 3, 1975, 88 Stat. 2119,
2120; Pub. L. 94–455, title V, § 503(b)(4), title XIX,
§§ 1901(b)(1)(B), (H)(ii), 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1562, 1790, 1791, 1834; Pub. L. 95–600, title I, § 113(c),
Nov. 6, 1978, 92 Stat. 2778; Pub. L. 97–473, title II,
§ 202(b)(1), Jan. 14, 1983, 96 Stat. 2609; Pub. L. 98–21, title
I, § 122(c)(1), Apr. 20, 1983, 97 Stat. 87; renumbered § 24
and amended Pub. L. 98–369, div. A, title IV, §§ 471(c),
474(f), July 18, 1984, 98 Stat. 826, 831, related to contribu-
tions to candidates for public office, prior to repeal by
Pub. L. 99–514, title I, §§ 112(a), 151(a), Oct. 22, 1986, 100
Stat. 2108, 2121, applicable to taxable years beginning
after Dec. 31, 1986.
AMENDMENTS
2021—Subsec. (i). Pub. L. 117–2, § 9611(a), added subsec.
(i).
Subsec. (j). Pub. L. 117–2, § 9611(b)(2), added subsec. (j).
Subsec. (k). Pub. L. 117–2, § 9612(a), added subsec. (k).
2018—Subsec. (d)(3), (5). Pub. L. 115–141, § 401(a)(3), re-
designated par. (5) as (3).
Subsec. (e)(2). Pub. L. 115–141, § 101(i)(1), substituted
‘‘taxpayer identification number’’ for ‘‘identifying
number’’.
2017—Subsec. (h). Pub. L. 115–97 added subsec. (h).
2015—Subsec. (d)(1)(B)(i). Pub. L. 114–113, § 101(a), sub-
stituted ‘‘$3,000’’ for ‘‘$10,000’’.
Subsec. (d)(3), (4). Pub. L. 114–113, § 101(b), struck out
pars. (3) and (4) which related to inflation adjustment
and special rule for certain years, respectively.
Subsec. (d)(5). Pub. L. 114–27 added par. (5).
Subsec. (e). Pub. L. 114–113, § 205(a), (b), substituted
‘‘requirements’’ for ‘‘requirement’’ in subsec. heading,
designated existing provisions as par. (1), inserted par.
heading and ‘‘and such taxpayer identification number
was issued on or before the due date for filing such re-
turn’’ before period at end, and added par. (2).
Subsec. (g). Pub. L. 114–113, § 208(a)(1), added subsec.
(g).
2014—Subsec. (d)(4). Pub. L. 113–295 amended par. (4)
generally. The amendment was effective as if included
in the provisions of the American Recovery and Rein-
vestment Tax Act of 2009 (Pub. L. 111–5, div. B, title I)
to which the amendment related. As amended by Pub.
L. 111–5, § 1003(a), par. (4) read as follows: ‘‘SPECIAL RULE
FOR 2009 AND 2010.—Notwithstanding paragraph (3), in the
case of any taxable year beginning in 2009 or 2010, the
dollar amount in effect for such taxable year under
paragraph (1)(B)(i) shall be $3,000.’’ See 2009 Amendment
and Effective Date of 2014 Amendment notes below.
2013—Subsec. (b)(3). Pub. L. 112–240, § 104(c)(2)(B)(i),
struck out par. (3). Prior to amendment, text read as
follows: ‘‘In the case of a taxable year to which section
26(a)(2) does not apply, the credit allowed under sub-
section (a) for any taxable year shall not exceed the ex-
cess of—
‘‘(A) the sum of the regular tax liability (as defined
in section 26(b)) plus the tax imposed by section 55,
over
‘‘(B) the sum of the credits allowable under this
subpart (other than this section and sections 23,
25A(i), 25B, 25D, 30, 30B, and 30D) and section 27 for
the taxable year.’’
Subsec. (d)(1). Pub. L. 112–240, § 104(c)(2)(B)(ii)(II), sub-
stituted ‘‘section 26(a)’’ for ‘‘section 26(a)(2) or sub-
section (b)(3), as the case may be’’ in concluding provi-
sions.
Subsec. (d)(1)(A), (B). Pub. L. 112–240,
§ 104(c)(2)(B)(ii)(I), substituted ‘‘section 26(a)’’ for ‘‘sec-
tion 26(a)(2) or subsection (b)(3), as the case may be,’’
in subpar. (A) and in introductory provisions in subpar.
(B).
Subsec. (d)(4). Pub. L. 112–240, § 103(b), which directed
substitution of ‘‘for certain years’’ for ‘‘2009, 2010, 2011,
Page 85 TITLE 26—INTERNAL REVENUE CODE § 24
and 2012’’ in heading and ‘‘after 2008 and before 2018’’ for
‘‘in 2009, 2010, 2011, or 2012’’ in text, could not be exe-
cuted because of the subsequent general amendment of
subsec. (d)(4) by Pub. L. 113–295, which was effective as
if included in the provisions of the American Recovery
and Reinvestment Tax Act of 2009 (Pub. L. 111–5, div. B,
title I) to which the amendment related. See 2014
Amendment note above and Effective Date of 2014
Amendment note below.
2010—Subsec. (b)(3)(B). Pub. L. 111–148, § 10909(b)(2)(A),
(c), as amended by Pub. L. 111–312, § 101(b)(1), tempo-
rarily struck out ‘‘23,’’ before ‘‘25A(i),’’. See Effective
and Termination Dates of 2010 Amendment note below.
Subsec. (d)(4). Pub. L. 111–312, § 103(b), which directed
substitution of ‘‘2009, 2010, 2011, and 2012’’ for ‘‘2009 and
2010’’ in heading and ‘‘, 2010, 2011, or 2012’’ for ‘‘or 2010’’
in text, could not be executed because of the subse-
quent general amendment of subsec. (d)(4) by Pub. L.
113–295, which was effective as if included in the provi-
sions of the American Recovery and Reinvestment Tax
Act of 2009 (Pub. L. 111–5, div. B, title I) to which the
amendment related. See 2014 Amendment note above
and Effective Date of 2014 Amendment note below.
2009—Subsec. (b)(3)(B). Pub. L. 111–5, § 1144(b)(1)(A),
inserted ‘‘30B,’’ after ‘‘30,’’.
Pub. L. 111–5, § 1142(b)(1)(A), inserted ‘‘30,’’ after
‘‘25D,’’.
Pub. L. 111–5, § 1004(b)(1), inserted ‘‘25A(i),’’ after
‘‘23,’’.
Subsec. (d)(4). Pub. L. 111–5, § 1003(a), amended par. (4)
generally. Prior to amendment, text read as follows:
‘‘Notwithstanding paragraph (3), in the case of any tax-
able year beginning in 2008, the dollar amount in effect
for such taxable year under paragraph (1)(B)(i) shall be
$8,500.’’ Par. (4) was subsequently generally amended by
Pub. L. 113–295, effective as if included in the provisions
of the American Recovery and Reinvestment Tax Act
of 2009 (Pub. L. 111–5, div. B, title I) to which the
amendment related. See 2014 Amendment note above
and Effective Date of 2014 Amendment note below.
2008—Subsec. (a). Pub. L. 110–351 inserted ‘‘for which
the taxpayer is allowed a deduction under section 151’’
after ‘‘of the taxpayer’’.
Subsec. (b)(3)(B). Pub. L. 110–343, § 205(d)(1)(A), sub-
stituted ‘‘25D, and 30D’’ for ‘‘and 25D’’.
Pub. L. 110–343, § 106(e)(2)(B), substituted ‘‘, 25B, and
25D’’ for ‘‘and 25B’’.
Subsec. (d)(4). Pub. L. 110–343, § 501(a), added par. (4).
2007—Subsec. (d)(1)(B). Pub. L. 110–172, § 11(c)(1)(A),
substituted ‘‘the greater of’’ for ‘‘the excess (if any) of’’
in introductory provisions.
Subsec. (d)(1)(B)(ii)(II). Pub. L. 110–172, § 11(c)(1)(B),
substituted ‘‘section 32’’ for ‘‘section’’.
2005—Subsec. (b)(3). Pub. L. 109–135, § 402(i)(3)(B)(i),
substituted ‘‘In the case of a taxable year to which sec-
tion 26(a)(2) does not apply, the credit’’ for ‘‘The cred-
it’’ in introductory provisions.
Subsec. (d)(1). Pub. L. 109–135, § 402(i)(3)(B)(ii), reen-
acted heading without change and amended text gen-
erally. Prior to amendment, text read as follows: ‘‘The
aggregate credits allowed to a taxpayer under subpart
C shall be increased by the lesser of—
‘‘(A) the credit which would be allowed under this
section without regard to this subsection and the
limitation under subsection (b)(3), or
‘‘(B) the amount by which the amount of credit al-
lowed by this section (determined without regard to
this subsection) would increase if the limitation im-
posed by subsection (b)(3) were increased by the
greater of—
‘‘(i) 15 percent of so much of the taxpayer’s
earned income (within the meaning of section 32)
which is taken into account in computing taxable
income for the taxable year as exceeds $10,000, or
‘‘(ii) in the case of a taxpayer with 3 or more
qualifying children, the excess (if any) of—
‘‘(I) the taxpayer’s social security taxes for the
taxable year, over
‘‘(II) the credit allowed under section 32 for the
taxable year.
The amount of the credit allowed under this subsection
shall not be treated as a credit allowed under this sub-
part and shall reduce the amount of credit otherwise
allowable under subsection (a) without regard to sub-
section (b)(3). For purposes of subparagraph (B), any
amount excluded from gross income by reason of sec-
tion 112 shall be treated as earned income which is
taken into account in computing taxable income for
the taxable year.’’
2004—Subsec. (a). Pub. L. 108–311, § 101(a), reenacted
heading without change and amended text generally,
substituting provisions relating to $1,000 per year cred-
it per qualifying child for provisions relating to dif-
ferent credit amounts for calendar years 2003 through
2010 or thereafter.
Subsec. (c)(1). Pub. L. 108–311, § 204(a), reenacted head-
ing without change and amended text generally. Prior
to amendment, text read as follows: ‘‘The term ‘quali-
fying child’ means any individual if—
‘‘(A) the taxpayer is allowed a deduction under sec-
tion 151 with respect to such individual for the tax-
able year,
‘‘(B) such individual has not attained the age of 17
as of the close of the calendar year in which the tax-
able year of the taxpayer begins, and
‘‘(C) such individual bears a relationship to the tax-
payer described in section 32(c)(3)(B).’’
Subsec. (c)(2). Pub. L. 108–311, § 204(b), substituted
‘‘subparagraph (A) of section 152(b)(3)’’ for ‘‘the first
sentence of section 152(b)(3)’’.
Subsec. (d)(1). Pub. L. 108–311, § 104(a), inserted at end
of concluding provisions ‘‘For purposes of subparagraph
(B), any amount excluded from gross income by reason
of section 112 shall be treated as earned income which
is taken into account in computing taxable income for
the taxable year.’’
Subsec. (d)(1)(B)(i). Pub. L. 108–311, § 102(a), struck out
‘‘(10 percent in the case of taxable years beginning be-
fore January 1, 2005)’’ after ‘‘15 percent’’.
Subsec. (d)(2)(A)(iii). Pub. L. 108–311, § 408(b)(4),
amended directory language of Pub. L. 107–90. See 2001
Amendment note below.
2003—Subsec. (a)(2). Pub. L. 108–27 amended table by
deleting items relating to calendar years 2001 and 2002
and increasing per child amount from $600 to $1,000 for
calendar years 2003 or 2004.
2002—Subsec. (b)(3)(B). Pub. L. 107–147, § 417(23)(A),
amended directory language of Pub. L. 107–16,
§ 618(b)(2)(A). See 2001 Amendment note below.
Subsec. (d)(1)(B). Pub. L. 107–147, § 411(b), substituted
‘‘aggregate amount of credits allowed by this subpart’’
for ‘‘amount of credit allowed by this section’’ in intro-
ductory provisions.
2001—Subsec. (a). Pub. L. 107–16, § 201(a), amended
heading and text of subsec. (a) generally. Prior to
amendment, text read as follows: ‘‘There shall be al-
lowed as a credit against the tax imposed by this chap-
ter for the taxable year with respect to each qualifying
child of the taxpayer an amount equal to $500 ($400 in
the case of taxable years beginning in 1998).’’
Subsec. (b). Pub. L. 107–16, § 201(b)(2)(A), amended
heading generally, substituting ‘‘Limitations’’ for
‘‘Limitation based on adjusted gross income’’.
Subsec. (b)(1). Pub. L. 107–16, § 201(b)(2)(B), amended
heading generally, substituting ‘‘Limitation based on
adjusted gross income’’ for ‘‘In general’’.
Subsec. (b)(3). Pub. L. 107–16, § 201(b)(1), added par. (3).
Subsec. (b)(3)(B). Pub. L. 107–16, § 618(b)(2)(A), as
amended by Pub. L. 107–147, § 417(23)(A), substituted
‘‘sections 23 and 25B’’ for ‘‘section 23’’.
Pub. L. 107–16, § 202(f)(2)(B), substituted ‘‘this section
and section 23’’ for ‘‘this section’’.
Subsec. (d). Pub. L. 107–16, § 201(c)(1), amended subsec.
heading and heading and text of par. (1) generally.
Prior to amendment, text read as follows: ‘‘In the case
of a taxpayer with three or more qualifying children for
any taxable year, the aggregate credits allowed under
subpart C shall be increased by the lesser of—
‘‘(A) the credit which would be allowed under this
section without regard to this subsection and the
limitation under section 26(a); or
§ 24 TITLE 26—INTERNAL REVENUE CODE Page 86
‘‘(B) the amount by which the aggregate amount of
credits allowed by this subpart (without regard to
this subsection) would increase if the limitation im-
posed by section 26(a) were increased by the excess (if
any) of—
‘‘(i) the taxpayer’s Social Security taxes for the
taxable year, over
‘‘(ii) the credit allowed under section 32 (deter-
mined without regard to subsection (n)) for the tax-
able year.
The amount of the credit allowed under this subsection
shall not be treated as a credit allowed under this sub-
part and shall reduce the amount of credit otherwise
allowable under subsection (a) without regard to sec-
tion 26(a).’’
Subsec. (d)(1). Pub. L. 107–16, § 201(b)(2)(C)(i), sub-
stituted ‘‘subsection (b)(3)’’ for ‘‘section 26(a)’’ wher-
ever appearing in subsec. (d), as amended by Pub. L.
107–16, § 201(c).
Subsec. (d)(1)(B). Pub. L. 107–16, § 201(b)(2)(C)(ii), sub-
stituted ‘‘amount of credit allowed by this section’’ for
‘‘aggregate amount of credits allowed by this subpart’’
in subpar. (B) as amended by Pub. L. 107–16, § 201(c).
Subsec. (d)(2). Pub. L. 107–16, § 201(d), redesignated
par. (3) as (2) and struck out heading and text of former
par. (2). Text read as follows: ‘‘For taxable years begin-
ning after December 31, 2001, the credit determined
under this subsection for the taxable year shall be re-
duced by the excess (if any) of—
‘‘(A) the amount of tax imposed by section 55 (relat-
ing to alternative minimum tax) with respect to such
taxpayer for such taxable year, over
‘‘(B) the amount of the reduction under section
32(h) with respect to such taxpayer for such taxable
year.’’
Subsec. (d)(2)(A)(iii). Pub. L. 107–90, as amended by
Pub. L. 108–311, § 408(b)(4), substituted ‘‘section 3211(a)’’
for ‘‘section 3211(a)(1)’’.
Subsec. (d)(3). Pub. L. 107–16, § 201(d)(2), redesignated
par. (4) as (3). Former par. (3) redesignated (2).
Subsec. (d)(4). Pub. L. 107–16, § 201(c)(2), added par. (4).
Former par. (4) redesignated (3).
1999—Subsec. (d)(2). Pub. L. 106–170 substituted ‘‘2001’’
for ‘‘1998’’ in introductory provisions.
1998—Subsec. (d)(1). Pub. L. 105–206, § 6003(a)(1)(C),
added par. (1) and struck out heading and text of
former par. (1). Text read as follows: ‘‘In the case of a
taxpayer with 3 or more qualifying children for any
taxable year, the amount of the credit allowed under
this section shall be equal to the greater of—
‘‘(A) the amount of the credit allowed under this
section (without regard to this subsection and after
application of the limitation under section 26), or
‘‘(B) the alternative credit amount determined
under paragraph (2).’’
Subsec. (d)(2). Pub. L. 105–277 substituted ‘‘For tax-
able years beginning after December 31, 1998, the cred-
it’’ for ‘‘The credit’’.
Pub. L. 105–206, § 6003(a)(1)(C), added par. (2) and
struck out heading and text of former par. (2). Text
read as follows: ‘‘For purposes of this subsection, the
alternative credit amount is the amount of the credit
which would be allowed under this section if the limita-
tion under paragraph (3) were applied in lieu of the lim-
itation under section 26.’’
Subsec. (d)(3). Pub. L. 105–206, § 6003(a)(1)(A), (B), (2),
redesignated par. (5) as (3), substituted ‘‘paragraph (1)’’
for ‘‘paragraph (3)’’ in introductory provisions, and
struck out heading and text of former par. (3). Text
read as follows: ‘‘The limitation under this paragraph
for any taxable year is the limitation under section 26
(without regard to this subsection)—
‘‘(A) increased by the taxpayer’s social security
taxes for such taxable year, and
‘‘(B) reduced by the sum of—
‘‘(i) the credits allowed under this part other than
under subpart C or this section, and
‘‘(ii) the credit allowed under section 32 without
regard to subsection (m) thereof.’’
Subsec. (d)(4). Pub. L. 105–206, § 6003(a)(1)(A), struck
out heading and text of par. (4). Text read as follows:
‘‘If the amount of the credit under paragraph (1)(B) ex-
ceeds the amount of the credit under paragraph (1)(A),
such excess shall be treated as a credit to which sub-
part C applies. The rule of section 32(h) shall apply to
such excess.’’
Subsec. (d)(5). Pub. L. 105–206, § 6003(a)(1)(B), redesig-
nated par. (5) as (3).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2021 AMENDMENT
Pub. L. 117–2, title IX, § 9611(c)(1), Mar. 11, 2021, 135
Stat. 150, provided that: ‘‘The amendments made by
this section [enacting section 7527A of this title and
amending this section, sections 26, 3402, and 6211 of this
title, and section 1324 of Title 31, Money and Finance]
shall apply to taxable years beginning after December
31, 2020.’’
Pub. L. 117–2, title IX, § 9612(b), Mar. 11, 2021, 135 Stat.
152, provided that: ‘‘The amendments made by this sec-
tion [amending this section] shall apply to taxable
years beginning after December 31, 2020.’’
EFFECTIVE DATE OF 2018 AMENDMENT
Pub. L. 115–141, div. U, title I, § 101(s), Mar. 23, 2018, 132
Stat. 1169, provided that: ‘‘The amendments made by
this section [see Tables for classification] shall take ef-
fect as if included in the provision of the Protecting
Americans from Tax Hikes Act of 2015 [Pub. L. 114–113,
div. Q] to which they relate.’’
EFFECTIVE DATE OF 2017 AMENDMENT
Pub. L. 115–97, title I, § 11022(b), Dec. 22, 2017, 131 Stat.
2074, provided that: ‘‘The amendment made by this sec-
tion [amending this section] shall apply to taxable
years beginning after December 31, 2017.’’
EFFECTIVE DATE OF 2015 AMENDMENT
Pub. L. 114–113, div. Q, title I, § 101(c), Dec. 18, 2015, 129
Stat. 3044, provided that: ‘‘The amendments made by
this section [amending this section] shall apply to tax-
able years beginning after the date of the enactment of
this Act [Dec. 18, 2015].’’
Pub. L. 114–113, div. Q, title II, § 205(c), Dec. 18, 2015,
129 Stat. 3081, as amended by Pub. L. 115–141, div. U,
title I, § 101(i)(2), Mar. 23, 2018, 132 Stat. 1162, provided
that: ‘‘The amendments made by this section [amend-
ing this section] shall apply to any return of tax, and
any amendment or supplement to any return of tax,
which is filed after the date of the enactment of this
Act [Dec. 18, 2015].’’
Pub. L. 114–113, div. Q, title II, § 208(c), Dec. 18, 2015,
129 Stat. 3084, provided that: ‘‘The amendments made
by this section [amending this section and sections 25A
and 6213 of this title] shall apply to taxable years be-
ginning after December 31, 2015.’’
Pub. L. 114–27, title VIII, § 807(b), June 29, 2015, 129
Stat. 418, provided that: ‘‘The amendment made by this
section [amending this section] shall apply to taxable
years beginning after December 31, 2014.’’
EFFECTIVE DATE OF 2014 AMENDMENT
Pub. L. 113–295, div. A, title II, § 209(k), Dec. 19, 2014,
128 Stat. 4031, provided that: ‘‘The amendments made
by this section [amending this section, sections 25A, 30,
30D, 35, 38, 45Q, 48, 48C, 164, 853A, and 1016 of this title,
and provisions set out as notes under sections 6428 and
6432 of this title] shall take effect as if included in the
provisions of the American Recovery and Reinvestment
Tax Act of 2009 [Pub. L. 111–5, div. B, title I] to which
they relate.’’
EFFECTIVE DATE OF 2013 AMENDMENT
Pub. L. 112–240, title I, § 103(e), Jan. 2, 2013, 126 Stat.
2320, provided that:
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the amendments made by this section [amending this
section and sections 25A, 32, and 6409 of this title and
Page 87 TITLE 26—INTERNAL REVENUE CODE § 24
amending provisions set out as a note under section
25A of this title] shall apply to taxable years beginning
after December 31, 2012.
‘‘(2) RULE REGARDING DISREGARD OF REFUNDS.—The
amendment made by subsection (d) [amending section
6409 of this title] shall apply to amounts received after
December 31, 2012.’’
Amendment by section 104(c)(2)(B) of Pub. L. 112–240
applicable to taxable years beginning after Dec. 31,
2011, see section 104(d) of Pub. L. 112–240, set out as a
note under section 23 of this title.
EFFECTIVE AND TERMINATION DATES OF 2010
AMENDMENT
Pub. L. 111–312, title I, § 103(d), Dec. 17, 2010, 124 Stat.
3299, provided that: ‘‘The amendments made by this
section [amending this section and sections 25A and 32
of this title and amending provisions set out as a note
under section 25A of this title] shall apply to taxable
years beginning after December 31, 2010.’’
Amendment by Pub. L. 111–148 terminated applicable
to taxable years beginning after Dec. 31, 2011, and sec-
tion is amended to read as if such amendment had
never been enacted, see section 10909(c) of Pub. L.
111–148, set out as a note under section 1 of this title.
Amendment by Pub. L. 111–148 applicable to taxable
years beginning after Dec. 31, 2009, see section 10909(d)
of Pub. L. 111–148, set out as a note under section 1 of
this title.
EFFECTIVE AND TERMINATION DATES OF 2009
AMENDMENT
Pub. L. 111–5, div. B, title I, § 1003(b), Feb. 17, 2009, 123
Stat. 313, provided that: ‘‘The amendments made by
this section [amending this section] shall apply to tax-
able years beginning after December 31, 2008.’’
Pub. L. 111–5, div. B, title I, § 1004(d), Feb. 17, 2009, 123
Stat. 315, provided that: ‘‘The amendments made by
this section [amending this section, sections 25 to 25B,
26, 904, 1400C, and 6211 of this title, and section 1324 of
Title 31, Money and Finance] shall apply to taxable
years beginning after December 31, 2008.’’
Pub. L. 111–5, div. B, title I, § 1004(e), Feb. 17, 2009, 123
Stat. 315, provided that: ‘‘The amendment made by sub-
section (b)(1) [amending this section] shall be subject
to title IX of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001 [Pub. L. 107–16, § 901, which was
repealed by Pub. L. 112–240, title I, § 101(a)(1), Jan. 2,
2013, 126 Stat. 2315, was formerly set out as an Effective
and Termination Dates of 2001 Amendment note under
section 1 of this title] in the same manner as the provi-
sion of such Act to which such amendment relates.’’
Pub. L. 111–5, div. B, title I, § 1142(c), Feb. 17, 2009, 123
Stat. 331, provided that: ‘‘The amendments made by
this section [amending this section and sections 25, 25B,
26, 30, 30B, 30C, 53, 55, 904, 1016, 1400C, and 6501 of this
title] shall apply to vehicles acquired after the date of
the enactment of this Act [Feb. 17, 2009].’’
Pub. L. 111–5, div. B, title I, § 1142(e), Feb. 17, 2009, 123
Stat. 331, provided that: ‘‘The amendment made by sub-
section (b)(1)(A) [amending this section] shall be sub-
ject to title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 [Pub. L. 107–16, § 901, which
was repealed by Pub. L. 112–240, title I, § 101(a)(1), Jan.
2, 2013, 126 Stat. 2315, was formerly set out as an Effec-
tive and Termination Dates of 2001 Amendment note
under section 1 of this title] in the same manner as the
provision of such Act to which such amendment re-
lates.’’
Pub. L. 111–5, div. B, title I, § 1144(c), Feb. 17, 2009, 123
Stat. 333, provided that: ‘‘The amendments made by
this section [amending this section and sections 25, 25B,
26, 30B, 30C, 55, 904, and 1400C of this title] shall apply
to taxable years beginning after December 31, 2008.’’
Pub. L. 111–5, div. B, title I, § 1144(d), Feb. 17, 2009, 123
Stat. 333, provided that: ‘‘The amendment made by sub-
section (b)(1)(A) [amending this section] shall be sub-
ject to title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 [Pub. L. 107–16, § 901, which
was repealed by Pub. L. 112–240, title I, § 101(a)(1), Jan.
2, 2013, 126 Stat. 2315, was formerly set out as an Effec-
tive and Termination Dates of 2001 Amendment note
under section 1 of this title] in the same manner as the
provision of such Act to which such amendment re-
lates.’’
EFFECTIVE AND TERMINATION DATES OF 2008
AMENDMENT
Pub. L. 110–351, title V, § 501(d), Oct. 7, 2008, 122 Stat.
3980, provided that: ‘‘The amendments made by this
section [amending this section and section 152 of this
title] shall apply to taxable years beginning after De-
cember 31, 2008.’’
Amendment by section 106(e)(2)(B) of title I of div. B
of Pub. L. 110–343 applicable to taxable years beginning
after Dec. 31, 2007, and subject to title IX of the Eco-
nomic Growth and Tax Relief Reconciliation Act of
2001, Pub. L. 107–16, § 901, in the same manner as the
provisions of such Act to which such amendment re-
lates, see section 106(f)(1), (3) of Pub. L. 110–343, set out
as a note under section 23 of this title. Title IX of Pub.
L. 107–16 was repealed by Pub. L. 112–240, title I,
§ 101(a)(1), Jan. 2, 2013, 126 Stat. 2315.
Pub. L. 110–343, div. B, title II, § 205(e), (f), Oct. 3, 2008,
122 Stat. 3839, provided that:
‘‘(e) EFFECTIVE DATE.—The amendments made by this
section [enacting section 30D of this title and amending
this section and sections 25, 25B, 26, 30B, 38, 1016, 1400C,
and 6501 of this title] shall apply to taxable years be-
ginning after December 31, 2008.
‘‘(f) APPLICATION OF EGTRRA SUNSET.—The amend-
ment made by subsection (d)(1)(A) [amending this sec-
tion] shall be subject to title IX of the Economic
Growth and Tax Relief Reconciliation Act of 2001 [Pub.
L. 107–16, § 901, which was repealed by Pub. L. 112–240,
title I, § 101(a)(1), Jan. 2, 2013, 126 Stat. 2315, was for-
merly set out as an Effective and Termination Dates of
2001 Amendment note under section 1 of this title] in
the same manner as the provision of such Act to which
such amendment relates.’’
Pub. L. 110–343, div. C, title V, § 501(b), Oct. 3, 2008, 122
Stat. 3876, provided that: ‘‘The amendment made by
this section [amending this section] shall apply to tax-
able years beginning after December 31, 2007.’’
EFFECTIVE DATE OF 2007 AMENDMENT
Pub. L. 110–172, § 11(c)(2), Dec. 29, 2007, 121 Stat. 2489,
provided that: ‘‘The amendments made by this sub-
section [amending this section] shall take effect as if
included in the provisions of the Gulf Opportunity Zone
Act of 2005 [Pub. L. 109–135] to which they relate.’’
EFFECTIVE AND TERMINATION DATES OF 2005
AMENDMENT
Amendment by Pub. L. 109–135 subject to title IX of
the Economic Growth and Tax Relief Reconciliation
Act of 2001, Pub. L. 107–16, § 901, in the same manner as
the provisions of such Act to which such amendment
relates, see section 402(i)(3)(H) of Pub. L. 109–135, set
out as a note under section 23 of this title. Title IX of
Pub. L. 107–16 was repealed by Pub. L. 112–240, title I,
§ 101(a)(1), Jan. 2, 2013, 126 Stat. 2315.
Amendment by Pub. L. 109–135 effective as if included
in the provisions of the Energy Policy Act of 2005, Pub.
L. 109–58, to which it relates and applicable to taxable
years beginning after Dec. 31, 2005, see section 402(m) of
Pub. L. 109–135, set out as a note under section 23 of
this title.
EFFECTIVE AND TERMINATION DATES OF 2004
AMENDMENT
Amendment by section 101(a) of Pub. L. 108–311 appli-
cable to taxable years beginning after Dec. 31, 2003, see
section 101(e) of Pub. L. 108–311, set out as a note under
section 1 of this title.
Pub. L. 108–311, title I, § 102(b), Oct. 4, 2004, 118 Stat.
1168, provided that: ‘‘The amendment made by this sec-
tion [amending this section] shall apply to taxable
years beginning after December 31, 2003.’’
§ 25 TITLE 26—INTERNAL REVENUE CODE Page 88
Pub. L. 108–311, title I, § 104(c)(1), Oct. 4, 2004, 118 Stat.
1169, provided that: ‘‘The amendment made by sub-
section (a) [amending this section] shall apply to tax-
able years beginning after December 31, 2003.’’
Amendment by title I of Pub. L. 108–311 subject to
title IX of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001, Pub. L. 107–16, § 901, to the same
extent and in the same manner as the provisions of
such Act to which such amendments relate, see section
105 of Pub. L. 108–311, set out as a note under section 1
of this title. Title IX of Pub. L. 107–16 was repealed by
Pub. L. 112–240, title I, § 101(a)(1), Jan. 2, 2013, 126 Stat.
2315.
Amendment by section 204 of Pub. L. 108–311 applica-
ble to taxable years beginning after Dec. 31, 2004, see
section 208 of Pub. L. 108–311, set out as a note under
section 2 of this title.
EFFECTIVE AND TERMINATION DATES OF 2003
AMENDMENT
Pub. L. 108–27, title I, § 101(c), May 28, 2003, 117 Stat.
754, provided that:
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the amendments made by this section [enacting section
6429 of this title and amending this section] shall apply
to taxable years beginning after December 31, 2002.
‘‘(2) SUBSECTION (b).—The amendments made by sub-
section (b) [enacting section 6429 of this title] shall
take effect on the date of the enactment of this Act
[May 28, 2003].’’
Amendments by title I of Pub. L. 108–27 subject to
title IX of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001, Pub. L. 107–16, § 901, to the same
extent and in the same manner as the provisions of
such Act to which such amendments relate, see section
107 of Pub. L. 108–27, set out as a note under section 1
of this title. Title IX of Pub. L. 107–16 was repealed by
Pub. L. 112–240, title I, § 101(a)(1), Jan. 2, 2013, 126 Stat.
2315.
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by section 411(b) of Pub. L. 107–147 effec-
tive as if included in the provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001, Pub.
L. 107–16, to which such amendment relates, see section
411(x) of Pub. L. 107–147, set out as a note under section
25B of this title.
EFFECTIVE DATE OF 2001 AMENDMENT
Amendment by sections 201(b), 202(f), and 618(b) of
Pub. L. 107–16 inapplicable to taxable years beginning
during 2004 or 2005, see section 312(b)(2) of Pub. L.
108–311, set out as a note under section 23 of this title.
Amendment by sections 201(b), 202(f), and 618(b) of
Pub. L. 107–16 inapplicable to taxable years beginning
during 2002 and 2003, see section 601(b)(2) of Pub. L.
107–147, set out as a note under section 23 of this title.
Pub. L. 107–90, title II, § 204(f), Dec. 21, 2001, 115 Stat.
893, provided that: ‘‘The amendments made by this sec-
tion [enacting subchapter E of chapter 22 of this title
and amending this section and sections 72, 3201, 3211,
3221, and 3231 of this title] shall apply to calendar years
beginning after December 31, 2001.’’
Pub. L. 107–16, title II, § 201(e), June 7, 2001, 115 Stat.
47, provided that:
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the amendments made by this section [amending this
section and sections 23, 25, 26, 32, 904, and 1400C of this
title] shall apply to taxable years beginning after De-
cember 31, 2000.
‘‘(2) SUBSECTION (b).—The amendments made by sub-
section (b) [amending this section and sections 23, 25,
26, 904, and 1400C of this title] shall apply to taxable
years beginning after December 31, 2001.’’
Amendment by section 202(f)(2)(B) of Pub. L. 107–16
applicable to taxable years beginning after Dec. 31,
2001, see section 202(g)(1) of Pub. L. 107–16, set out as a
note under section 23 of this title.
Pub. L. 107–16, title VI, § 618(d), June 7, 2001, 115 Stat.
108, provided that: ‘‘The amendments made by this sec-
tion [enacting section 25B of this title and amending
this section and sections 25, 25B, 26, 904, and 1400C of
this title] shall apply to taxable years beginning after
December 31, 2001.’’
EFFECTIVE DATE OF 1999 AMENDMENT
Pub. L. 106–170, title V, § 501(c), Dec. 17, 1999, 113 Stat.
1919, provided that: ‘‘The amendments made by this
section [amending this section and sections 26 and 904
of this title] shall apply to taxable years beginning
after December 31, 1998.’’
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105–277, div. J, title II, § 2001(c), Oct. 21, 1998,
112 Stat. 2681–901, provided that: ‘‘The amendments
made by this section [amending this section and sec-
tion 26 of this title] shall apply to taxable years begin-
ning after December 31, 1997.’’
Amendment by Pub. L. 105–206 effective, except as
otherwise provided, as if included in the provisions of
the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which
such amendment relates, see section 6024 of Pub. L.
105–206, set out as a note under section 1 of this title.
EFFECTIVE DATE
Pub. L. 105–34, title I, § 101(e), Aug. 5, 1997, 111 Stat.
799, provided that: ‘‘The amendments made by this sec-
tion [enacting this section and amending sections 32,
501, and 6213 of this title and section 1324 of Title 31,
Money and Finance] shall apply to taxable years begin-
ning after December 31, 1997.’’
REFUNDS DISREGARDED IN ADMINISTRATION OF
FEDERAL AND FEDERALLY ASSISTED PROGRAMS
Pub. L. 107–16, title II, § 203, June 7, 2001, 115 Stat. 49,
provided that: ‘‘Any payment considered to have been
made to any individual by reason of section 24 of the
Internal Revenue Code of 1986, as amended by section
201, shall not be taken into account as income and shall
not be taken into account as resources for the month
of receipt and the following month, for purposes of de-
termining 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.’’
§ 25. Interest on certain home mortgages
(a) Allowance of credit
(1) In general
There shall be allowed as a credit against
the tax imposed by this chapter for the tax-
able year an amount equal to the product of—
(A) the certificate credit rate, and
(B) the interest paid or accrued by the tax-
payer during the taxable year on the re-
maining principal of the certified indebted-
ness amount.
(2) Limitation where credit rate exceeds 20
percent
(A) In general
If the certificate credit rate exceeds 20 per-
cent, the amount of the credit allowed to the
taxpayer under paragraph (1) for any taxable
year shall not exceed $2,000.
(B) Special rule where 2 or more persons
hold interests in residence
If 2 or more persons hold interests in any
residence, the limitation of subparagraph
(A) shall be allocated among such persons in
proportion to their respective interests in
the residence.
(b) Certificate credit rate; certified indebtedness
amount
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