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Referred to the House Committee on Ways and Means.
Strikes '21 percent' and inserts '28 percent' in subsection (b) to change the corporate income tax rate.
Strikes '1 percent' and inserts '4 percent' in section 4501(a) to increase the tax on corporate stock repurchases.
Replaces 55(b)(2)(A)(i) to provide that the corporate alternative minimum tax is the sum of: (I) 15 percent of adjusted financial statement income up to $5,000,000,000, plus (II) 25 percent of adjusted financial statement income in excess of $5,000,000,000.
Adds a new paragraph (12) to section 1(h) to provide an inflation adjustment to the $1,000,000 amount in paragraph (1), including a specified cost-of-living substitution and a $50 rounding rule.
Adds new section 24A ('Monthly child tax credit') to Subpart A of part IV of subchapter A of the Internal Revenue Code of 1986, establishing the monthly child tax credit and related rules.
Adds new section 24B ('Credit for certain other dependents') to Subpart A of part IV of subchapter A of the Internal Revenue Code of 1986, establishing a $500 credit for certain other dependents and associated phaseout rules.
Amends chapter 77 by inserting a new section (after 7527A) establishing monthly advance payments (section 7527B) and related presumptive eligibility, repayment/recapture, and coordination provisions.
Amends the table in section 32(b)(1) of the Internal Revenue Code to modify credit percentage language and update headings/phrasing.
Amends section 32(b)(2)(A) to replace existing earned income dollar amounts and phaseout dollar amounts (striking $6,330, $8,890, $4,220, $5,280 and inserting new amounts such as $30,000 and other specified replacement amounts).
Amends section 32(b)(2)(B) by replacing the provision that increased the amount 'determined under subparagraph (A)' by $5,000 for joint returns with language making the phaseout amount twice the amount determined under subparagraph (A).
And 2 more affected sections...
Introduced January 15, 2025 by Emilia Strong Sykes · Last progress January 15, 2025
This legislation expands tax help for families and workers. It increases the Earned Income Tax Credit by lowering the minimum age to 18, giving married couples a higher limit before the credit phases down, and adjusting amounts over time; it also directs Treasury to reach out to people who likely qualify but didn’t claim it. These changes start with 2026 taxes . It also sets up annual federal payments so that state earned income tax credits that are non‑refundable work like refundable credits in states that participate, with refunds processed like other tax credit refunds . The old once‑a‑year child tax credit ends after 2025 and is replaced with a new monthly, refundable child benefit: $350 per child under 6 and $300 per child ages 6–17, with income‑based phase‑downs . Monthly payments can go out in advance based on “presumptive eligibility,” with grace and hardship periods and automatic enrollment for newborns; overpayments can be collected back only in certain cases (like fraud, underreported income, a filing‑status change, or payments outside the eligible period). Payments are sent electronically, protected from most offsets and garnishment, and the monthly amounts adjust for inflation after 2025 .
To help pay for this, lower capital‑gains rates would no longer apply to taxpayers with income above $1 million (the threshold is indexed after 2026), and corporate taxes increase: the corporate income tax rate moves from 21% to 28%, the stock‑buyback tax rises from 1% to 4%, and the corporate minimum tax becomes 15% on the first $5 billion of adjusted financial‑statement income and 25% above that. Most of these changes begin with 2026 tax years, and any net revenue is intended to reduce the deficit and then the debt .
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