“To amend the Internal Revenue Code of 1986 to increase the amount of the earned income tax credit for parents of young children.”
No CRS summary available for this bill.
This section increases the Earned Income Tax Credit (EITC) for eligible individuals with qualifying children under age 4 by (1) adding 42.24 percentage points to the credit percentage for one such child, or 30.07 percentage points for each of the youngest three such children if there are two or more qualifying children; (2) adding 5 percentage points to the phaseout percentage for each of the youngest three such children; and (3) directing the Secretary of the Treasury to establish a program allowing taxpayers to elect monthly payments of refunds attributable to these increases in equal increments over the remaining months of the taxable year. The changes apply to taxable years beginning after December 31, 2025.