Permanently expands the earned income tax credit (EIC) for people who do not have qualifying children by lowering the minimum age for many young adults, creating special lower ages for certain foster and homeless youth, removing the prior maximum age limit, and changing the credit and phaseout rules (with indexing for inflation). It also changes how the EIC applies in certain U.S. territories and permits a taxpayer to elect to use prior year earned income for the EIC when current-year earned income is lower. The changes apply to taxable years beginning after December 31, 2025.