Expands access to the refundable part of the Child Tax Credit for families living in Puerto Rico by aligning their treatment with families in the states. It updates the tax code so Puerto Rico residents are treated equitably when claiming the refundable amount.

It also clarifies how Social Security payroll taxes are counted when figuring the refundable portion of the credit, so the calculation works consistently. Changes apply starting with 2025 tax returns (tax years beginning after December 31, 2024).