Page:United States Statutes at Large Volume 111 Part 1.djvu/821

 PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 797 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 section 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 individual 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 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). "(2) EXCEPTION FOR CERTAIN NONCITIZENS. — The term 'qualifying child' shall not include any individual who would not be a dependent if the first sentence of section 152(b)(3) were applied without regard to all that follows 'resident of the United States'. " (d) ADDITIONAL CREDIT FOR FAMILIES WITH 3 OR MORE CHIL- DREN. — "(1) IN GENERAL.— 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). "(2) ALTERNATIVE CREDIT AMOUNT.— 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. "(3) LIMITATION.— 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.

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