; and (3) to provide for a Federal match for new and existing ABLE accounts held by individuals with an annual income less than 200 percent of the Federal poverty limit. 4. Matching payments for ABLE account contributions by certain individuals (a) In general Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 6434. Matching payments for ABLE account contributions by certain individuals (a) In general (1) Allowance of credit Any individual who is the designated beneficiary of an ABLE account as of the last day of the taxable year and who makes qualified ABLE account contributions for such taxable year shall be allowed a credit for such taxable year in an amount equal to the applicable percentage of so much of the qualified ABLE account contributions made by such individual for the taxable year as does not exceed $2,000. (2) Payment of credit (A) In general The credit under this section shall be— (i) treated as allowed by subpart C of part IV of subchapter A of chapter 1, and (ii) paid by the Secretary as a contribution (as soon as practicable after the individual has filed a tax return making a claim for such credit for the taxable year) to the ABLE account of the individual. (B) Exception In the case of an individual who elects the application of this subparagraph and with respect to whom the credit determined under paragraph (1) is greater than zero but less than $50 for the taxable year, subparagraph (A)(ii) shall not apply. (b) Overall limitation The amount of the credit allowed under this section with respect to any individual shall not exceed the excess of— (1) the amount in effect under section 529A(b)(2)(B) for the taxable year, over (2) the amount of contributions made to the ABLE account of the individual for such taxable year. (c) Applicable percentage For purposes of this section— (1) In general Except as provided in paragraph (2), the applicable percentage is 100 percent. (2) Phaseout The percentage under paragraph (1) shall be