Page:United States Statutes at Large Volume 115 Part 1.djvu/68

 115 STAT. 46 PUBLIC LAW 107-16^JUNE 7, 2001 (ii) in paragraph (1)(B) by striking "aggregate amount of credits allowed by this subpart" and inserting "amount of credit allowed by this section". 26 USC 26. (D) Paragraph (1) of section 26(a) is amended by inserting "(other than section 24)" after "this subpart". (E) Subsection (c) of section 23 is amended by striking "and section 1400C" and inserting "and sections 24 and 1400C". (F) Subparagraph (C) of section 25(e)(1) is amended by inserting ", 24," after "sections 23". (G) Section 904(h) is amended by inserting "(other than section 24)" after "chapter". (H) Subsection (d) of section 1400C is amended by inserting "and section 24" after "this section". (c) REFUNDABLE CHILD CREDIT. — (1) IN GENERAL. —So much of section 24(d) (relating to additional credit for families with 3 or more children) as precedes paragraph (2) is amended to read as follows: "(d) PORTION OF CREDIT REFUNDABLE. — "(1) IN GENERAL.—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 section 26(a), 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 section 26(a) were increased by the greater of— "(i) 15 percent (10 percent in the case of taxable years beginning before January 1, 2005) 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 subpart and shall reduce the amount of credit otherwise allowable under subsection (a) without regard to section 26(a).". (2) INFLATION ADJUSTMENT.—Subsection (d) of section 24 is amended by adding at the end the following new paragraph: "(4) INFLATION ADJUSTMENT.— In the case of any taxable year beginning in a calendar year after 2001, the $10,000 amount contained in paragraph (1)(B) shall be increased by an amount equal to— "(A) such dollar amount, multiplied by "(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 'calendar year 2000' for 'calendar year 1992' in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50.".

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