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 contributions 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.

2005—Subsec. (b)(3). Pub. L. 109–135, § 402(i)(3)(B)(i), (H), temporarily substituted “In the case of a taxable year to which section 26 (a)(2) does not apply, the credit” for “The credit” in introductory provisions. See Effective and Termination Dates of 2005 Amendment note below.

Subsec. (d)(1). Pub. L. 109–135, § 402(i)(3)(B)(ii), (H), temporarily reenacted heading without change and amended text generally. 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 allowed by this section (determined without regard to this subsection) would increase if the limitation imposed 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.

2004—Subsec. (a). Pub. L. 108–311, §§ 101(a), 105, temporarily reenacted heading without change and amended text generally, substituting provisions relating to $1,000 per year credit per qualifying child for provisions relating to different credit amounts for calendar years 2003 through 2010 or thereafter. See Effective and Termination Dates of 2004 Amendment note below.

Subsec. (c)(1). Pub. L. 108–311, § 204(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The term ‘qualifying child’ means any individual if—

“(A) the taxpayer is allowed a deduction under section 151 with respect to such individual for the taxable year,

“(B) such individual has not attained the age of 17 as of the close of the calendar year in which the taxable year of the taxpayer begins, and

“(C) such individual bears a relationship to the taxpayer 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), 105, temporarily 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.” See Effective and Termination Dates of 2004 Amendment note below.

Subsec. (d)(1)(B)(i). Pub. L. 108–311, §§ 102(a), 105, temporarily struck out “(10 percent in the case of taxable years beginning before January 1, 2005)” after “15 percent”. See Effective and Termination Dates of 2004 Amendment note below.

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, §§ 101(a), 107, temporarily 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. See Effective and Termination Dates of 2003 Amendment note below.

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 introductory provisions.

2001—Subsec. (a). Pub. L. 107–16, §§ 201(a), 901, temporarily amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “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 taxpayer an amount equal to $500 ($400 in the case of taxable years beginning in 1998).” See Effective and Termination Dates of 2001 Amendments note below.

Subsec. (b). Pub. L. 107–16, §§ 201(b)(2)(A), 901, temporarily amended heading generally, substituting “Limitations” for “Limitation based on adjusted gross income”. See Effective and Termination Dates of 2001 Amendments note below.

Subsec. (b)(1). Pub. L. 107–16, §§ 201(b)(2)(B), 901, temporarily amended heading generally, substituting “Limitation based on adjusted gross income” for “In general”. See Effective and Termination Dates of 2001 Amendments note below.

Subsec. (b)(3). Pub. L. 107–16, §§ 201(b)(1), 901, temporarily added par. (3). See Effective and Termination Dates of 2001 Amendments note below.

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), 901, temporarily substituted “this section and section 23” for “this section”. See Effective and Termination Dates of 2001 Amendments note below.

Subsec. (d). Pub. L. 107–16, §§ 201(c)(1), 901, temporarily 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

“(B) the amount by which the aggregate amount of credits allowed by this subpart (without regard to this subsection) would increase if the limitation imposed 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 (determined without regard to subsection (n)) for the taxable year.

Subsec. (d)(1). Pub. L. 107–16, §§ 201(b)(2)(C)(i), 901, temporarily substituted “subsection (b)(3)” for “section 26 (a)” wherever appearing in subsec. (d), as amended by Pub. L. 107–16, § 201(c). See Effective and Termination Dates of 2001 Amendments note below.

Subsec. (d)(1)(B). Pub. L. 107–16, §§ 201(b)(2)(C)(ii), 901, temporarily substituted “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). See Effective and Termination Dates of 2001 Amendments note below.

Subsec. (d)(2). Pub. L. 107–16, §§ 201(d), 901, temporarily redesignated par. (3) as (2) and struck out heading and text of former par. (2). Text read as follows: “For taxable years beginning after December 31, 2001, the credit determined under this subsection for the taxable year shall be reduced by the excess (if any) of—

“(A) the amount of tax imposed by section 55 (relating 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.” See Effective and Termination Dates of 2001 Amendments note below.

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), 901, temporarily redesignated par. (4) as (3). Former par. (3) temporarily redesignated (2). See Effective and Termination Dates of 2001 Amendments note below.

Subsec. (d)(4). Pub. L. 107–16, §§ 201(c)(2), 901, temporarily added par. (4). Former par. (4) temporarily redesignated (3). See Effective and Termination Dates of 2001 Amendments note below.

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 taxable years beginning after December 31, 1998, the credit” 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 limitation under paragraph (3) were applied in lieu of the limitation 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) exceeds the amount of the credit under paragraph (1)(A), such excess shall be treated as a credit to which subpart C applies. The rule of section 32 (h) shall apply to such excess.”

Subsec. (d)(5). Pub. L. 105–206, § 6003(a)(1)(B), redesignated par. (5) as (3).

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.

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.

Amendment by section 101(a) of Pub. L. 108–311 applicable 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 section [amending this section] shall apply to taxable years beginning after December 31, 2003.”

Pub. L. 108–311, title I, § 104(c)(1), Oct. 4, 2004, 118 Stat. 1169, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable 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 Reconciliation 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.

Amendment by section 204 of Pub. L. 108–311 applicable 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.

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 subsection (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 Reconciliation 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.

Amendment by section 411(b) of Pub. L. 107–147 effective 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.

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 section [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 December 31, 2000.

“(2) Subsection (b).—The amendments made by subsection (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 section [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.”

Amendment by sections 201 (a)–(b)(2)(C), (c)(1), (2), (d) and 202(f)(2)(B) of Pub. L. 107–16 inapplicable to taxable, plan, or limitation years beginning after Dec. 31, 2010, and the Internal Revenue Code of 1986 to be applied and administered to such years as if such amendment had never been enacted, see section 901 of Pub. L. 107–16, set out as a note under section 1 of this title.

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.”

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 section 26 of this title] shall apply to taxable years beginning 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.

Section 101(e) of Pub. L. 105–34 provided that: “The amendments made by this section [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 beginning after December 31, 1997.”

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 determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.”