1. Short title This Act may be cited as the Foster Care Tax Credit Act . 2. Foster care tax credit (a) Allowance of credit (1) In general Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section: 25E. Foster care tax credit (a) Allowance of credit With respect to each qualifying foster child of an eligible taxpayer, for each calendar month occurring during the taxable year that such child resides in the home of such taxpayer, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 1/12 of the amount determined under subsection (b). (b) Amount determined (1) In general The amount determined under this subsection with respect to an eligible taxpayer and a taxable year is— (A) $1,000, reduced by (B) $50 for each $1,000 (or fraction thereof) by which the eligible 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 has the meaning given such term by section 24(b)(2). (c) Qualifying foster child For purposes of this section, the term qualifying foster child means an eligible foster child (within the meaning of section 152(f)(1)(C)) of the eligible taxpayer— (1) who has not attained age 17, (2) who is a citizen, national, or resident of the United States, (3) who resides in the home of the eligible taxpayer for not less than 1 calendar month during the taxable year, and (4) with respect to whom the credit under section 24 is not allowable to the eligible taxpayer or any other taxpayer who would be an eligible taxpayer but for paragraph (3) of subsection (d). (d) Eligible taxpayer For purposes of this section, the term eligible taxpayer means any taxpayer, except that— (1) no single