12 2 STA T .6 1 4PUBLIC LA W 11 0– 1 85—FE B.1 3, 2008 ‘ ‘ (A)theamoun t d ete r m i ned under s u b se c tion (a) sha l l not be less than $30 0($ 6 00inthecaseo f a j oint return) , and ‘‘( B ) the amount determined under subsection (a) (after the a p plication of subpara g raph (A)) shall be increased b y the product of $300 multiplied by the number of q uali - fying children ( w ithin the meaning of section 24 (c)) of the ta x payer . ‘‘(2) TAXP A YERD E SC R IB ED. — A taxpayer is described in this paragraph if the taxpayer— ‘‘(A) has qualifying income of at least $3,000, or ‘‘(B) has— ‘‘(i) net income tax liability which is greater than z ero, and ‘‘(ii) gross income which is greater than the sum of the basic standard deduction plus the exemption amount (twice the exemption amount in the case of a joint return). ‘‘(c) TREA TM E N T OFC REDIT.—The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1 . ‘‘(d) L IMITATION BASED ON AD JU STED G ROSS INCOME.—The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (f)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer ’ s adjusted gross income as exceeds $ 7 5,000 ($150,000 in the case of a joint return). ‘‘(e) D EFINITIONS.— F or purposes of this section— ‘‘(1) Q UA L IFYIN G INCOME.—The term ‘qualifying income’ means— ‘‘(A) earned income, ‘‘(B) social security benefits (within the meaning of section 8 6(d)), and ‘‘(C) any compensation or pension recei v ed under chapter 11, chapter 13, or chapter 15 of title 38, U nited S tates Code. ‘‘(2) N ET INCOME TAX LIABILITY.—The term ‘net income tax liability’ means the excess of— ‘‘(A) the sum of the taxpayer’s regular tax liability (within the meaning of section 26(b)) and the tax imposed by section 55 for the taxable year, over ‘‘(B) the credits allowed by part IV (other than section 24 and subpart C thereof) of subchapter A of chapter 1. ‘‘(3) E LIGIBLE INDI V IDUAL.—The term ‘eligible individual’ means any individual other than— ‘‘(A) any nonresident alien individual, ‘‘(B) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and ‘‘(C) an estate or trust. ‘‘(4) EARNED INCOME.—The term ‘earned income’ has the meaning set forth in section 32(c)(2) except that— ‘‘(A) subclause (II) of subparagraph (B)(vi) thereof shall be applied by substituting ‘ J anuary 1, 200 9 ’ for ‘January 1, 2008’, and
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