“To amend the Internal Revenue Code of 1986 to establish a refundable childhood education tax credit with monthly advance payments.”
No CRS summary available for this bill.
This section establishes a new refundable Monthly Childhood Education Tax Credit under a new IRC §24A (inserted after §24) equal to the sum of monthly allowances of $667 (inflation-adjusted after 2025) per specified child for each month in the taxable year, phased out for households with income above 300% of the federal poverty line. A specified child is an individual (generally ages 2 to under 5) who resides with the taxpayer for more than half the month, receives uncompensated care from the taxpayer (excluding government payments), and is enrolled in an early childhood education program (i.e., as defined in the Higher Education Act of 1965 §103, including state-licensed private prekindergarten). This section also amends 31 U.S.C. §1324(b)(2) to authorize disbursements from the permanent appropriation for IRS refunds attributable to this new credit (by adding §24A to the enumerated list).