To help American families save, invest, and build a better future, and for other purposes.

April 6, 2005

Mr. LARSON of Connecticut (for himself and Mr. EMANUEL) introduced the following bill; which was referred to the Committee on Ways and Means

To help American families save, invest, and build a better future, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Better Future for American Families Act'.

SEC. 2. MODIFICATIONS TO SAVER'S CREDIT.

(a) Saver's Credit- Section 25B of the Internal Revenue Code of 1986 is amended by striking the heading thereof and inserting `the saver's credit'.

(b) Modifications to Applicable Percentage- Subsection (b) of section 25B of the Internal Revenue Code of 1986 is amended to read as follows:

`(b) Applicable Percentage- For purposes of this section--

`(1) IN GENERAL- The applicable percentage is 50 percent reduced (but not below zero) by 1 percentage point for each phaseout amount by which the taxpayer's adjusted gross income for the taxable year exceeds the threshold amount.

`(2) PHASEOUT AMOUNT; THRESHOLD AMOUNT- The phaseout amount and the threshold amount shall be determined as follows:

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`In the case of an individual filing: The phaseout amount is: The threshold amount is: 

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A joint return                        $400                                     $30,000 

A head of household return            $300                                     $22,500 

Any other return                      $200                                  $15,000.'. 

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(c) Repeal of Termination- Section 25B of the Internal Revenue Code of 1986 is amended by striking subsection (h).

(d) Credit Refundable-

(1) IN GENERAL- Section 25B of the Internal Revenue Code of 1986, as amended by this Act, is hereby moved to subpart C of part IV of subchapter A of chapter 1 of such Code (relating to refundable credits) and inserted after section 35.

(2) CONFORMING AMENDMENTS-

(A) Section 24(b)(3)(B) of such Code is amended by striking `sections 23 and 25B' and inserting `section 23'.

(B) Section 25(e)(1)(C) of such Code is amended by striking `25B,'.

(C) Section 26(a)(1) of such Code is amended by striking `sections 23, 24, and 25B' and inserting `sections 23 and 24'.

(D) Section 25B of such Code, as moved by paragraph (1), is redesignated as section 36.

(E) Section 904(h) of such Code is amended by striking `sections 23, 24, and 25B' and inserting `sections 23 and 24'.

(F) Section 1400C of such Code is amended by striking `sections 23, 24, and 25B' and inserting `section 23 and 24'.

(G) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 36 and inserting the following:

`Sec. 36. The Saver's Credit.

`Sec. 37. Overpayments of tax.'.

(H) The table of sections for subpart A of part IV of such Code is amended by striking the item relating to section 25B.

(I) Section 1324(b)(2) of title 31, United States Code, is amended by inserting `, or enacted by the Better Future for American Families Act' before the period at the end.

(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2004.

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