“A bill to amend the Internal Revenue Code of 1986 to make new child payments, to provide for American Dream Accounts, and for other purposes.”
No CRS summary available for this bill.
This section establishes a new refundable tax credit under new IRC §6436 (i.e., "new child payments") of $3,000 per eligible new child (adjusted annually for inflation after 2025 using a cost-of-living adjustment with calendar year 2024 as the base year and rounded down to the nearest $10), payable by the IRS within 30 days of the eligible taxpayer's claim. An eligible taxpayer is a parent (per IRC §152(c)(4)) who shares a principal place of abode with the child from the birth, adoption, or placement date until the claim; if both parents claim separately, the child is assigned to the one with longer residency or (if tied) higher prior-year AGI. An eligible new child is a U.S. citizen or national with a Social Security number who (1) is born to the taxpayer (including via surrogacy) after enactment, (2) is adopted by the taxpayer after enactment before age 3, or (3) is placed with the taxpayer by an agency or court after enactment before age 1; such child cannot have been previously claimed under this section by another taxpayer. Payments are exempt from reduction or offset for federal debts or taxes (per IRC §6402 or similar); the taxpayer must include a pre-existing taxpayer identification number with the claim; and no credit is allowed during a 10-year disallowance period following a fraud determination or a 2-year period following reckless disregard (but not fraud). The IRS must issue implementing regulations.
This section (1) renames "Trump accounts" as "American Dream accounts" (i.e., tax-advantaged savings accounts for U.S. citizen minors) throughout specified Internal Revenue Code provisions, including §§530A, 128, 139J, 6434, and related headings and tables; (2) permanently extends the $1,000 government seed contribution to such accounts for eligible newborns (previously through 2028) and indexes that amount for inflation after 2026 (rounded to the nearest $100, using 2025 as the base year); and (3) establishes a new refundable tax credit under §6434A for additional government contributions to American Dream accounts, equal to $500 per qualifying child (under age 18) for eligible taxpayers with adjusted gross income not exceeding $75,000 ($150,000 joint) or $750 plus a $250 match on private contributions if also eligible for the earned income tax credit (each amount indexed for inflation after 2026, rounded to the nearest $10). (Thus, contributions under §§6434 and 6434A count toward account limits and are excluded from taxable distributions.)