119 HR 353 IH: Family First Act
U.S. House of Representatives
2025-01-13
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the Family First Act
.<enum>I</enum><header>Child Tax Credit and Tax Credit for Pregnant Mothers</header><section id="H3D8D967FC77D4A87B654C5C454025075"><enum>101.</enum><header>Permanent expansion of child tax credit</header><subsection id="H676E1401D0B84D31A0CF56E0023603A9"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/24">Section 24</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="H0228CF1D2E4B48C9980D46E9AA70D1D9"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsections (a) through (e) and inserting the following new subsections:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H95E4CA8D5D624F4E9976B80641370C11"><subsection id="HCCDFAE4153F046E79C2CE87FE2089134"><enum>(a)</enum><header>Allowance of credit</header><paragraph commented="no" display-inline="no-display-inline" id="H0EA8E40288794D399E402AED4C370F47"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the base credit amount.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H162451719414493BA7256C8DC4F5DF47"><enum>(2)</enum><header>Base credit amount</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the base credit amount shall be an amount equal to the sum of—</text><subparagraph commented="no" display-inline="no-display-inline" id="H79CCE7DEE8AD451FB2EBD5EE834EB23B"><enum>(A)</enum><text display-inline="yes-display-inline">for each qualifying child who has not attained age 6 as of the close of the calendar year in which the taxable year of the taxpayer begins, $4,200, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA0B327682E03488FACF1FF6423B0EC5E"><enum>(B)</enum><text>for each qualifying child of the taxpayer who is not described in subparagraph (A), $3,000.</text></subparagraph></paragraph></subsection><subsection commented="no" id="H6D446ED58F2D446D8F77B25966575A81"><enum>(b)</enum><header>Applicable percentage and limitation based on adjusted gross income</header><paragraph commented="no" display-inline="no-display-inline" id="H538F6944ABDC4CDE9D8E1AC2C0217F24"><enum>(1)</enum><header display-inline="yes-display-inline">Applicable percentage</header><text>For purposes of subsection (a), the applicable percentage shall be—</text><subparagraph commented="no" display-inline="no-display-inline" id="H82C902FA3AEE4B11A187EF939726AB17"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of a taxpayer whose modified adjusted gross income is equal to or greater than $20,000, 100 percent, or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0135F39713434A68A9A6EDDA8403DC7B"><enum>(B)</enum><text>in the case of a taxpayer whose modified adjusted gross income is less than $20,000, an amount (expressed as a percentage) equal to the quotient of—</text><clause commented="no" display-inline="no-display-inline" id="H987E64D799A34086A3F68C60379F31D9"><enum>(i)</enum><text display-inline="yes-display-inline">the modified adjusted gross income of the taxpayer, divided by</text></clause><clause commented="no" display-inline="no-display-inline" id="H402CB6093A094C4BA1E8AAF4AF5CA6C2"><enum>(ii)</enum><text>$20,000.</text></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDC6FE8671A7545028CFD9D8A95CD3A01"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount of the credit allowable under subsection (a) shall be reduced (but not below zero) by $50 for each $1,000 (or fraction thereof) by which the taxpayer's modified adjusted gross income exceeds—</text><subparagraph commented="no" display-inline="no-display-inline" id="HB4A1E139CD6640C4862E81BD4FAF5E2F"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of a joint return, $400,000, or </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H370ABA6C8E9D4370834AAA811E27B325"><enum>(B)</enum><text display-inline="yes-display-inline">in any other case, $200,000. </text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAC146DB8E8EB45A9AB79D5A4D20E7CDC"><enum>(3)</enum><header>Modified adjusted gross income</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>modified adjusted gross income</term> means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA86BD6C1523C445098A0A816D73636DB"><enum>(4)</enum><header>Adjustment for inflation</header><subparagraph commented="no" display-inline="no-display-inline" id="HC2AEF192CCE646D99D9273173BFF16AC"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxable year beginning after 2026, each of the $20,000 amounts in paragraph (1) shall be increased by an amount equal to—</text><clause commented="no" display-inline="no-display-inline" id="H4B0DCD28F7494537BC09020D37E29385"><enum>(i)</enum><text display-inline="yes-display-inline">$20,000, multiplied by</text></clause><clause commented="no" display-inline="no-display-inline" id="HA941951559DD4F2691340E83B513DEA4"><enum>(ii)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>2025</quote> for <quote>2016</quote> in subparagraph (A)(ii) thereof.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0D254825977A4F659FE87A9A68BB530A"><enum>(B)</enum><header>Rounding</header><text display-inline="yes-display-inline">If any increase under this paragraph is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.</text></subparagraph></paragraph></subsection><subsection id="H6C0E85BC3E284A839493A159B8130435"><enum>(c)</enum><header>Qualifying child</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph commented="no" display-inline="no-display-inline" id="H66199B8729C74C5C9F12FDCD235D9D1E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualifying child</term> means a qualifying child of the taxpayer (as defined in section 152(c)) who has not attained age 18 as of the close of the calendar year in which the taxable year of the taxpayer begins.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9488C7D80C3D4D49B2045A0397400A17"><enum>(2)</enum><header>Exception for certain noncitizens</header><text>The term <quote>qualifying child</quote> shall not include any individual who would not be a dependent if subparagraph (A) of section 152(b)(3) were applied without regard to all that follows <quote>resident of the United States</quote>.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8112B5FC70E64DECB274D35249E1A047"><enum>(d)</enum><header>Limitation on number of children</header><text>The number of qualifying children of a taxpayer for which a credit may be allowed under this section for any taxable year shall not exceed 6. </text></subsection><subsection commented="no" id="H31925E5E41A1455D8BE9E114E7307F2D"><enum>(e)</enum><header>Identification requirements</header><paragraph commented="no" display-inline="no-display-inline" id="H8D15CDFC8944404E968E2CC8C6D22037"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text>No credit shall be allowed under this section to a taxpayer who does not include on the return of tax for the taxable year—</text><subparagraph commented="no" display-inline="no-display-inline" id="H7E7CEE50A1254DA08FE97E92DA5B69EA"><enum>(A)</enum><text display-inline="yes-display-inline">the social security number of the taxpayer (and, in the case of a joint return, the social security number of at least 1 spouse), and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3F8083F915B041F6B346ACAD44F0ED97"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to any qualifying child, the name and the social security number of such qualifying child.</text></subparagraph></paragraph><paragraph id="HB94C3D34918B4CC7A0EB2AF2AF7E431A"><enum>(2)</enum><header>Social security number defined</header><text>For purposes of this subsection, the term <term>social security number</term> means, with respect to a return of tax, a social security number issued to an individual by the Social Security Administration, but only if the social security number is issued—</text><subparagraph id="H551CCD25D3E94F98B4B32962533E2245"><enum>(A)</enum><text>to a citizen of the United States or pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act, and</text></subparagraph><subparagraph id="H0E0B312C1EBA40EEB7A32764833B46B2"><enum>(B)</enum><text>before the due date of filing such return.</text></subparagraph></paragraph></subsection><after-quoted-block>,</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2709C43650804D5D85880F5C7197399B"><enum>(2)</enum><text>by striking subsections (h) through (j),</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H10F941469F464723808FE7A4A3F20052"><enum>(3)</enum><text>in subsection (k)—</text><subparagraph commented="no" display-inline="no-display-inline" id="H5069DEE8071A448094C65F0F30124B02"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraph (2) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H530FC16213CE481F83CF4C28DE3561AA"><paragraph commented="no" display-inline="no-display-inline" id="H98C75C22533549489778FC3E51B89398"><enum>(2)</enum><header>Puerto Rico</header><text display-inline="yes-display-inline">In the case of any bona fide resident of Puerto Rico (within the meaning of section 937(a)), the credit determined under this section shall be allowable to such resident.</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5A429C9D23FF4C0A903E6395046B3D0D"><enum>(B)</enum><text>in paragraph (3)—</text><clause commented="no" display-inline="no-display-inline" id="H5EA3B6C586F64988AAA3B1B5BAFA17C3"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking <quote>and without regard to the application of this section to bona fide residents of Puerto Rico under subsection (i)(1)</quote>, and</text></clause><clause commented="no" display-inline="no-display-inline" id="HEB71B751A60E49408388C420D60964DF"><enum>(ii)</enum><text>in subparagraph (C), by striking clause (ii) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H7D07E9B0CCD445D49C1B1C6CEADE6CB6"><clause commented="no" display-inline="no-display-inline" id="HE60AF5FAA2AA4AEC815BE3F9BE1C8025"><enum>(ii)</enum><header>Application of section in event of absence of approved plan</header><text>In the case of a taxable year with respect to which a plan is not approved under subparagraph (B), rules similar to the rules of paragraph (2) shall apply with respect to bona fide residents of American Samoa (within the meaning of section 937(a)).</text></clause><after-quoted-block>, and</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H35603A373F3E4355BACDD1860386593F"><enum>(4)</enum><text display-inline="yes-display-inline">by redesignating subsection (k) (as amended by paragraph (3)) as subsection (h).</text></paragraph></subsection><subsection id="H6C699AC733194898AFA0A0E17754C82E"><enum>(b)</enum><header>Treatment as fully refundable</header><paragraph id="H089B0E0E347749ECA6461905DB3C8484"><enum>(1)</enum><header>Credit moved to subpart relating to refundable credits</header><subparagraph id="H50C4576BE34E47749B131977CA6E58DA"><enum>(A)</enum><header>In general</header><text>The Internal Revenue Code of 1986 is amended—</text><clause id="H084B703B9BF34DD98EDFF3AE1C142866"><enum>(i)</enum><text>by redesignating section 24, as amended by this section, as section 36C, and</text></clause><clause id="HCD966A9A56524889896E59CE7A59EA0F"><enum>(ii)</enum><text>by moving such section, as so redesignated, from subpart A of part IV of subchapter A of chapter 1 to the location immediately after section 36B in subpart C of part IV of subchapter A of chapter 1.</text></clause></subparagraph><subparagraph id="HA1CC42529D1B416A8E9383136B864274"><enum>(B)</enum><header>Technical amendment</header><text>Subsection (a) of section 36C of such Code, as moved and redesignated by subparagraph (A), is amended by striking <quote>this chapter</quote> and inserting <quote>this subtitle</quote>.</text></subparagraph><subparagraph id="H690CB6C162AA4E589792B081BB00122A"><enum>(C)</enum><header>Clerical amendments</header><clause id="H0DF49ADDCB85445E834E8625AA1D76C6"><enum>(i)</enum><text>The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 24.</text></clause><clause id="H5CF11506AC724FB28D14CF451E21A4B0"><enum>(ii)</enum><text>The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H39B684FA5E124A6CAB91AF93FF485A29"><toc><toc-entry bold="off" level="section">Sec. 36C. Child tax credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph commented="no" id="HD0AFCDE9895E4A12B0F183EF5FED2B19"><enum>(2)</enum><header>Conforming amendments</header><subparagraph commented="no" id="H4E1F0E34EB884AC7AA6080B689BDB1BD"><enum>(A)</enum><text>Section 26(b)(2) of such Code is amended—</text><clause id="H80A3944E0EF54632838B18852C4D1DE3"><enum>(i)</enum><text>by striking <quote>, and</quote> at the end of subparagraph (Y) and inserting a period,</text></clause><clause id="H56FA4B5569CE49208E154C8FD9F0B90E"><enum>(ii)</enum><text>by inserting <quote>and</quote> at the end of subparagraph (X), and</text></clause><clause id="H8DF9A7C542D24C939F311E8F7DF1CE8B"><enum>(iii)</enum><text>by striking subparagraph (Z).</text></clause></subparagraph><subparagraph commented="no" id="HF5DB172DBED744DFA6B2822D414249C2"><enum>(B)</enum><text>Section 45R(f)(3)(B) of such Code is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HA6CFB49AC2E54A61A9950345BE136D13"><subparagraph commented="no" id="H37C90252FD954ABC8FC859A71FFA1348"><enum>(B)</enum><header>Special rule</header><text>Any amounts paid pursuant to an agreement under section 3121(l) (relating to agreements entered into by American employers with respect to foreign affiliates) which are equivalent to the taxes referred to in subparagraph (A) shall be treated as taxes referred to in such subparagraph.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="HDDB43FB888F749B29B8793535A4936C2"><enum>(C)</enum><text>Section 48D(d)(4) of such Code is amended by striking <quote>section 24(k)</quote> and inserting <quote>section 36C(h)</quote>.</text></subparagraph><subparagraph commented="no" id="HC01746D0973F43B9BFD8C7D3824B73C3"><enum>(D)</enum><text>Section 152(f)(6)(B)(ii) of such Code is amended by striking <quote>section 24</quote> and inserting <quote>section 36C</quote>.</text></subparagraph><subparagraph commented="no" id="H7607755574A14174A1F02506547FADF6"><enum>(E)</enum><text>Section 501(c)(26) of such Code is amended in the flush matter at the end by striking <quote>section 24(c))</quote> and inserting <quote>section 36C(c))</quote>.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9E7AA389444F485489C279D3BEB07540"><enum>(F)</enum><text>Section 3402(f)(1)(C) of such Code is amended by striking <quote>section 24 (determined after application of subsection (j) thereof)</quote> and inserting <quote>section 36C</quote>.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H96F51D0CC8BB49B8B1696C28CC29777C"><enum>(G)</enum><text>Section 6103(l)(13)(A)(v) of such Code is amended by striking <quote>section 24</quote> and inserting <quote>section 36C</quote>.</text></subparagraph><subparagraph commented="no" id="H67F0B4AB0D5B4BD69F93F8C554FD27D1"><enum>(H)</enum><text>Section 6211(b)(4)(A) of such Code is amended—</text><clause commented="no" id="H8F26F9B534AE41E8B65A45153DD18275"><enum>(i)</enum><text>by striking <quote>24 by reason of subsections (d) and (i)(1) thereof,</quote>,</text></clause><clause commented="no" id="H2264F998A6CE4C009609886A949D0AD3"><enum>(ii)</enum><text>by inserting <quote>and 36C</quote> after <quote>36B,</quote>, and</text></clause><clause id="H8EDD1C75CF634D30B97A86F68482F123"><enum>(iii)</enum><text>by striking <quote>, 6428, 6428A, 6428B, and 7527A</quote>. </text></clause></subparagraph><subparagraph commented="no" id="HA9D089DE4A034C2CA6222B01985E7E1A"><enum>(I)</enum><text>Section 6213(g)(2) of such Code is amended—</text><clause commented="no" id="H74BFE4867A7E41B89088C37BEA30029A"><enum>(i)</enum><text>in subparagraph (I), by striking <quote>correct TIN required under section 24(e)</quote> and inserting <quote>correct social security number required under section 36C(e)</quote>,</text></clause><clause commented="no" id="H749F5E2A41FF450DAA3DFA97CBEDBAFA"><enum>(ii)</enum><text>in subparagraph (L)—</text><subclause commented="no" display-inline="no-display-inline" id="H54934F69BE034A7380337C2C04407A30"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>24, or 32</quote> and inserting <quote>32, or 36C</quote>, and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H23AECB18B6E14BE6BEAFBF1F86A5E225"><enum>(II)</enum><text>by striking <quote>TIN</quote> each place it appears and inserting <quote>TIN or social security number</quote>, and</text></subclause></clause><clause commented="no" id="HE3FE15996D1A4DA4852B3EE649F17D98"><enum>(iii)</enum><text>in subparagraph (P)—</text><subclause commented="no" id="H59CFE3A3E9F64434B2A67D0EC9E419A1"><enum>(I)</enum><text>by striking <quote>24(g)(2)</quote> and inserting <quote>36C(g)(2)</quote>, and</text></subclause><subclause commented="no" id="H4E98F94AA38544A4AF29F9D5B7582FF3"><enum>(II)</enum><text>by striking <quote>section 24</quote> and inserting <quote>section 36C</quote>.</text></subclause></clause></subparagraph><subparagraph commented="no" id="H0AC597B8E1D0496F940765298620FF86"><enum>(J)</enum><text>Section 6402(m) of such Code is amended by striking <quote>section 24 (by reason of subsection (d) thereof) or 32</quote> and inserting <quote>section 32 or 36C</quote>.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEFB96D3CA5604DA781866D4C0CBC280D"><enum>(K)</enum><text>Section 6417(f) of such Code is amended by striking <quote>section 24(k)</quote> and inserting <quote>section 36C(h)</quote>.</text></subparagraph><subparagraph commented="no" id="H69D763B75CD947F390F1E9586BE7CCAE"><enum>(L)</enum><text>Section 6695(g)(2) of such Code is amended by striking <quote>24, 25A(a)(1), or 32</quote> and inserting <quote>25A(a)(1), 32, or 36C</quote>.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAAC259C8B78843B59E0FC66108CF3F16"><enum>(M)</enum><text>Section 1324(b)(2) of title 31, United States Code, is amended—</text><clause commented="no" display-inline="no-display-inline" id="H4162BD42974249918FE0E102A51F2C95"><enum>(i)</enum><text>by striking <quote>24,</quote>, and</text></clause><clause commented="no" display-inline="no-display-inline" id="H403EA23775A34A1FA8289E7FF387B025"><enum>(ii)</enum><text>by inserting <quote>36C,</quote> after <quote>36B,</quote>.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1BF114ADA4044841ABFE48A8B2313388"><enum>(N)</enum><text>Section 1613(a)(11)(A) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1382b">42 U.S.C. 1382b(a)(11)(A)</external-xref>) is amended by striking <quote>section 24 of the Internal Revenue Code of 1986 (relating to child tax credit) by reason of subsection (d) thereof </quote> and inserting <quote>section 36C of the Internal Revenue Code of 1986 (relating to child tax credit)</quote>.</text></subparagraph><subparagraph id="H03FC4DEA48FE4730B8F6DA97EFEBBBEB"><enum>(O)</enum><text>Chapter 77 of such Code is amended by striking section 7527A (and the item relating to such section in the table of sections for such chapter).</text></subparagraph></paragraph></subsection><subsection id="HAB584F3D20224B38989A90A5CC71B2D8"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section><section id="H83B410188FAA4F45BBCE0005A59892E0"><enum>102.</enum><header>Tax credit for pregnant mothers</header><subsection commented="no" display-inline="no-display-inline" id="HFD0C4D543C604CE9B611715E24911EDD"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text>Subpart C of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after section 36C (as redesignated by section 101) the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H3CE1B2C2450C4875B1F7A29B9788C65A"><section commented="no" display-inline="no-display-inline" id="H654E3DE421854726979FD11FB061A9F7"><enum>36D.</enum><header>Credit for pregnant mothers</header><subsection commented="no" display-inline="no-display-inline" id="HE79FDDEDC3BC406DA0687FDFBD22E410"><enum>(a)</enum><header display-inline="yes-display-inline">Allowance of credit</header><text display-inline="yes-display-inline">In the case of an eligible taxpayer with a qualifying unborn child, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of $2,800.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H90229189C5964B4D811C724185AE3451"><enum>(b)</enum><header>Applicable percentage</header><paragraph commented="no" display-inline="no-display-inline" id="H776356313C7349DE928161B28318256A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of subsection (a), the applicable percentage shall be—</text><subparagraph commented="no" display-inline="no-display-inline" id="H99E99778D0584F2C970FBADA530635DF"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of a taxpayer whose modified adjusted gross income is equal to or greater than $10,000, 100 percent, or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H392738634712414D8ADC798FBEB26406"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a taxpayer whose modified adjusted gross income is less than $10,000, the amount (expressed as a percentage) equal to the quotient of—</text><clause commented="no" display-inline="no-display-inline" id="H589F0BEB860441508BD3CA4F15F746E0"><enum>(i)</enum><text display-inline="yes-display-inline">the modified adjusted gross income of the taxpayer, divided by</text></clause><clause commented="no" display-inline="no-display-inline" id="HF307B494465F482793C9E5FB6A3E7604"><enum>(ii)</enum><text display-inline="yes-display-inline">$10,000.</text></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDE81FFB33CF64418900AA9ACA6410CAD"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount of the credit allowable under subsection (a) shall be reduced (but not below zero) by $50 for each $1,000 (or fraction thereof) by which the taxpayer's modified adjusted gross income exceeds—</text><subparagraph commented="no" display-inline="no-display-inline" id="H9DA01151D7AF4DD1ACD1B53F6F165137"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of a joint return, $400,000, or </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC600FB2F02DC46D1B73F9AAFBD37A8A9"><enum>(B)</enum><text display-inline="yes-display-inline">in any other case, $200,000.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2FC6EA86EE884479BF01769E8F2DC7AE"><enum>(3)</enum><header>Modified adjusted gross income</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>modified adjusted gross income</term> has the same meaning given such term in section 36C(b)(3).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAE32ED00B2634703A77D29EFD117159E"><enum>(4)</enum><header>Adjustment for inflation</header><subparagraph commented="no" display-inline="no-display-inline" id="HD02EB5B8697343E4A9206CA4D74A4CAA"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxable year beginning after 2026, each of the $10,000 amounts in paragraph (1) shall be increased by an amount equal to—</text><clause commented="no" display-inline="no-display-inline" id="HDFF367AD718643ADAF7D665DA9C823DA"><enum>(i)</enum><text display-inline="yes-display-inline">$10,000, multiplied by</text></clause><clause commented="no" display-inline="no-display-inline" id="H35192A9B769A4E3598543B328874EE2C"><enum>(ii)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>2025</quote> for <quote>2016</quote> in subparagraph (A)(ii) thereof.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA7F95881259E4AE492B4A1C6254BA684"><enum>(B)</enum><header>Rounding</header><text display-inline="yes-display-inline">If any increase under this paragraph is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. </text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7DC3BF243A104237A50A8B7FC54AA511"><enum>(c)</enum><header>Qualifying unborn child</header><paragraph commented="no" display-inline="no-display-inline" id="H12A52E4B436046C7BC0D38F7E0BBC790"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>qualifying unborn child</term> means an unborn child whose gestational age is 20 weeks or greater, as certified by a physician in accordance with paragraph (2).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE149B594ECA74D3293D30B67CB08F6A6"><enum>(2)</enum><header>Certification</header><subparagraph commented="no" display-inline="no-display-inline" id="H5FBD9B1D1AC14463BBB95444D93762A7"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Upon the request of the mother, a physician may make a determination with respect to the gestational age of the unborn child. Any determination made under this paragraph shall be based on the reasonable medical judgment of the physician following such inquiries, examinations, and tests as a reasonably prudent physician would deem necessary for purposes of making such determination.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFCC5F9130F55468AA4344EE8D345FC34"><enum>(B)</enum><header>Form</header><text display-inline="yes-display-inline">If the physician has made a determination pursuant to subparagraph (A) that the gestational age of the unborn child is 20 weeks or greater, such physician may, upon the request of the mother, provide the mother with a form which includes the following:</text><clause commented="no" display-inline="no-display-inline" id="H67BAC97D61CF4A30A70D786CAD42261C"><enum>(i)</enum><text display-inline="yes-display-inline">The gestational age and the expected due date of the unborn child.</text></clause><clause commented="no" display-inline="no-display-inline" id="H447E53B3583141179CA6633948ED297D"><enum>(ii)</enum><text display-inline="yes-display-inline">The name and social security number of the mother.</text></clause><clause commented="no" display-inline="no-display-inline" id="HC512B52FBE08453A9FA93FF6D09668FD"><enum>(iii)</enum><text>If applicable, the name and social security number of the spouse of such mother.</text></clause><clause commented="no" display-inline="no-display-inline" id="HFD824AFD6E3E4FC08EA2A5ABD1C411D2"><enum>(iv)</enum><text display-inline="yes-display-inline">The name and contact information of the physician.</text></clause><clause commented="no" display-inline="no-display-inline" id="H6727791F4D094EDE8CBCD861DBCEA606"><enum>(v)</enum><text display-inline="yes-display-inline">A written certification from such physician stating, under penalty of perjury pursuant to section 1746 of title 28, that—</text><subclause commented="no" display-inline="no-display-inline" id="H73575ED783AD463C9B4D25E6C3A94881"><enum>(I)</enum><text display-inline="yes-display-inline">the mother was determined to have been pregnant with the unborn child, according to standard medical practice, by such physician, and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H2B072D875F154E079EB9A50F12B0D539"><enum>(II)</enum><text display-inline="yes-display-inline">such physician has determined that, in their reasonable medical judgment, the gestational age of the unborn child is 20 weeks or greater.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H7946208B01DA459BA7DFE7566CA101A4"><enum>(vi)</enum><text display-inline="yes-display-inline">A written certification from the mother of the unborn child stating, under penalty of perjury pursuant to section 1746 of title 28, United States Code, that she—</text><subclause commented="no" display-inline="no-display-inline" id="HC069AB77876440018A1CCB3A826D2C12"><enum>(I)</enum><text display-inline="yes-display-inline">is the biological mother of such unborn child, or</text></subclause><subclause commented="no" display-inline="no-display-inline" id="HC29DE8EDA5CF48EEB306E550C7D94843"><enum>(II)</enum><text display-inline="yes-display-inline">initiated the pregnancy with the intention of bearing and retaining custody of and parental rights to such child (or acted to such effect).</text></subclause></clause></subparagraph><subparagraph id="HA34113311BA047F28A7711A43AA0340E"><enum>(C)</enum><header>Prohibition</header><text>Notwithstanding any other provision of law, the certification described in this paragraph shall not be used for any purpose other than to determine the eligibility of the taxpayer for the credit allowed under this section.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H87384359B29E41BA8F07E00AD1C6736C"><enum>(d)</enum><header>Application</header><paragraph commented="no" display-inline="no-display-inline" id="H2C82341687FF46A8AD2C68DC545CC84C"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of the involuntary death of an unborn child, or the death of an unborn child as a result of any treatment intended to save the life of the mother or any treatment of an ectopic pregnancy, occurring after 20 weeks gestation, the death of such child shall have no effect with respect to whether the credit is allowed under this section to an eligible taxpayer, provided that such taxpayer otherwise satisfies the applicable requirements under this section.</text></paragraph><paragraph id="HAD6653B12AC34C0D90C1398F199F82F0"><enum>(2)</enum><header>More than 1 unborn child during the same taxable year</header><text>In the case of an eligible taxpayer who—</text><subparagraph commented="no" display-inline="no-display-inline" id="H7BA071B110FE431B98C392E39DE3F587"><enum>(A)</enum><text display-inline="yes-display-inline">has more than 1 pregnancy during a taxable year, or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1B96A36AB74E4CCAAB6104CC7AB53DB1"><enum>(B)</enum><text>is determined to be pregnant with more than 1 qualifying unborn child,</text></subparagraph><continuation-text continuation-text-level="paragraph">the credit under this section shall be allowed with respect to each qualifying unborn child.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7F06DA3BC84841EE92AA56B95AF086E9"><enum>(3)</enum><header>Interaction with child tax credit</header><text>The allowance of a credit under this section with respect to a qualifying unborn child shall have no effect in regards to the application of section 36C with respect to such child after the date of their birth.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H22B143444ABD4A8DAB3A0C83CD3D4F50"><enum>(e)</enum><header>Prohibition</header><text display-inline="yes-display-inline">No credit shall be allowed under this section if an unborn child died as a result of an induced abortion, but not including any treatment intended to save the life of the mother or any treatment of an ectopic pregnancy.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="HD7AF2F4866594A529EA81F2F2AF2F9E0"><enum>(f)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section—</text><paragraph commented="no" display-inline="no-display-inline" id="H6D9E8D12302246039D8152ADFA8A67A8"><enum>(1)</enum><header display-inline="yes-display-inline">Eligible taxpayer</header><text>The term <term>eligible taxpayer</term> means a taxpayer who—</text><subparagraph id="H3918C784BFDF42209A5310F1C9B1BB34"><enum>(A)</enum><text>with respect to an unborn child, is the mother who—</text><clause id="H94C26D558F0A42288B512A185A17153E"><enum>(i)</enum><text>carries or carried such child in the womb, and</text></clause><clause id="HBA4B9928A13B447899B19E56BC287D7E"><enum>(ii)</enum><text>is the biological mother of such child or initiated the pregnancy with the intention of bearing and retaining custody of and parental rights to such child (or acted to such effect), or</text></clause></subparagraph><subparagraph id="HC07576E5C8824DF1B560DF41B4A0060E"><enum>(B)</enum><text>in the case of a joint return, is the spouse of such mother,</text></subparagraph><continuation-text continuation-text-level="paragraph">but only if such taxpayer includes on the return of tax for the taxable year the social security number of such taxpayer (of at least 1 of such mother or spouse, in the case of a joint return).</continuation-text></paragraph><paragraph id="H3E419BED71564D4FA2D2CCB2EBE4CBB6"><enum>(2)</enum><header>Gestational age</header><text>The term <term>gestational age</term> means the age of the unborn child, as calculated from the first day of the mother’s last menstrual period.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2774EC0D5DB149EE9946905F1C849B9B"><enum>(3)</enum><header>Physician</header><text>The term <term>physician</term> means an individual who is—</text><subparagraph commented="no" display-inline="no-display-inline" id="H6269857CBAE64D2084B69753D4836B37"><enum>(A)</enum><text display-inline="yes-display-inline">licensed to practice—</text><clause commented="no" display-inline="no-display-inline" id="HD29F3C6148BB4603BB7927B973BF0CFA"><enum>(i)</enum><text display-inline="yes-display-inline">medicine and surgery, </text></clause><clause commented="no" display-inline="no-display-inline" id="HEA5ECDEB5202464B97852E360957C958"><enum>(ii)</enum><text display-inline="yes-display-inline">osteopathic medicine and surgery, or</text></clause><clause commented="no" display-inline="no-display-inline" id="H28DA5364FF1C4AB9999CDE10F3BD09D4"><enum>(iii)</enum><text>midwifery, or</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H655F91C0483845FEA596DDAA80EE95AF"><enum>(B)</enum><text display-inline="yes-display-inline">otherwise legally authorized to—</text><clause commented="no" display-inline="no-display-inline" id="H34DFD8A86E374D7589E54E66419DC6E9"><enum>(i)</enum><text display-inline="yes-display-inline">perform births and to diagnose and attend miscarriages or stillbirths, and</text></clause><clause commented="no" display-inline="no-display-inline" id="H04859A2CF7C64031A31008E1F4F0A60D"><enum>(ii)</enum><text display-inline="yes-display-inline">perform examinations to determine the gestational age of an unborn child,</text></clause></subparagraph><continuation-text continuation-text-level="paragraph">by the State in which such practice is performed.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB137766B3FFB44308FA92454B97B9EEE"><enum>(4)</enum><header display-inline="yes-display-inline">Reasonable medical judgment</header><text>The term <term>reasonable medical judgment</term> means a medical judgment that would be made by a reasonably prudent physician who is knowledgeable about the case and the treatment possibilities with respect to the medical conditions involved.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H45D54B023DB34DEAA60781E8BBA073DF"><enum>(5)</enum><header display-inline="yes-display-inline">Social security number</header><text>The term <term>social security number</term> has the meaning given such term by section 36C(e)(2).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HE4E77FAF2BE04B1E9D251B56D52DCF79"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for subpart C of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36C the following new item:</text><quoted-block style="OLC" id="H1E90A61AD23D4CAFBBC16D08A6B768EC"><toc><toc-entry level="section">Sec. 36D. Credit for pregnant mothers.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H620E6A2B45DC4D23902C845FE1C93ABB"><enum>(c)</enum><header display-inline="yes-display-inline">Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section><enum>I</enum><header>Other amendments to the Internal Revenue Code of 1986</header><section id="HBCC0E7AD7D7245A2BD5E3D8D858A0E31"><enum>201.</enum><header>Simplification of earned income credit for taxpayers with children</header><subsection commented="no" display-inline="no-display-inline" id="H94E743658788446ABCF46747986534AF"><enum>(a)</enum><header display-inline="yes-display-inline">Additional limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/32">Section 32(a)(2)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H0CF63733649F44799CF4CF36E571EC2B"><paragraph commented="no" display-inline="no-display-inline" id="HA47D9A924713400D81438776A3A9935C"><enum>(2)</enum><header>Limitation</header><text>The amount of the credit allowable to a taxpayer under paragraph (1) for any taxable year shall not exceed the lesser of—</text><subparagraph commented="no" display-inline="no-display-inline" id="HE86796E3272E4D2F894B0281433A1BCF"><enum>(A)</enum><text display-inline="yes-display-inline">the excess (if any) of—</text><clause commented="no" display-inline="no-display-inline" id="H057F80BE4DBB47478DF15C7519C7BECC"><enum>(i)</enum><text display-inline="yes-display-inline">the credit percentage of the earned income amount, over</text></clause><clause commented="no" display-inline="no-display-inline" id="H27F957CF60074366B2A4CD0192AD3E33"><enum>(ii)</enum><text display-inline="yes-display-inline">the phaseout percentage of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds the phaseout amount, or</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H389B3D70711647C892ED50A012CAA4D9"><enum>(B)</enum><text display-inline="yes-display-inline">an amount equal to—</text><clause commented="no" display-inline="no-display-inline" id="H4E11198BF7FB4585B8C70C0F1F60BA4B"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of any taxpayer with no qualifying children—</text><subclause commented="no" display-inline="no-display-inline" id="HBCABBC691F3443ED9702987AD0C51AAA"><enum>(I)</enum><text display-inline="yes-display-inline">who is not filing a joint return, $700, or</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H6D75BB941B304D0890B88801FE7B09A9"><enum>(II)</enum><text display-inline="yes-display-inline">who is filing a joint return, $1,400, or</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H8E735D66294C419CB9EE0381487E204C"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of any taxpayer with 1 or more qualifying children—</text><subclause commented="no" display-inline="no-display-inline" id="HACCDC72FF86D4132A59104CEB8EE7D69"><enum>(I)</enum><text display-inline="yes-display-inline">who is not filing a joint return, $4,300, or</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H6366881D31544A2E9F993BB88B622E3F"><enum>(II)</enum><text display-inline="yes-display-inline">who is filing a joint return, $5,000.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H80A38086C8D14C249A567118AE2FA97A"><enum>(b)</enum><header display-inline="yes-display-inline">Credit percentage and phaseout percentage</header><text display-inline="yes-display-inline">The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/32">section 32(b)(1)</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="H39CD7723BC1845A2A9AF9B796C2DCBD1"><enum>(1)</enum><text>by striking <quote>1 qualifying child</quote> in the first row and inserting <quote>1 or more qualifying children</quote>,</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HADF4EBFC7F66416884F35D1FDE500A0A"><enum>(2)</enum><text>by striking <quote>15.98</quote> in the first row and inserting <quote>25</quote>,</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H94E261A64A3F42EA9BC39B4E78E9CF4F"><enum>(3)</enum><text>by striking the second and third rows, and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDAEED7BB985644B99EF2856D91F192AE"><enum>(4)</enum><text>by striking <quote>7.65</quote> in the third column of the last row and inserting <quote>10</quote>.</text></paragraph></subsection><subsection id="HBFD3E1D5C8594733933522E763BC112F"><enum>(c)</enum><header>Earned income and phaseout amounts</header><text>The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/32">section 32(b)(2)(A)</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="HB9812455474A49E294C57FB38C044F4D"><enum>(1)</enum><text>by striking <quote>1 qualifying child</quote> in the first row and inserting <quote>1 or more qualifying children</quote>,</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H054714094D8F47339D4DCA83C779AE94"><enum>(2)</enum><text>by striking <quote>$6,330</quote> in the first row and inserting <quote>$12,647</quote>,</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H46359A77D20D49A29696411DEB019747"><enum>(3)</enum><text>by striking <quote>$11,610</quote> in the first row and inserting <quote>$33,000</quote>,</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H783DAB90A9DA4829BF67A2FC9D00EE9D"><enum>(4)</enum><text>by striking the second row,</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE999A7A99989493D819CBE74F8320816"><enum>(5)</enum><text>by striking <quote>$4,220</quote> in the last row and inserting <quote>$9,150</quote>, and</text></paragraph><paragraph id="H55214F8E2B7C4B6D909CFB67E5639F86" commented="no" display-inline="no-display-inline"><enum>(6)</enum><text>by striking <quote>$5,280</quote> in the last row and inserting <quote>$10,000</quote>.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H51B96381B2B34A52A7293E598EB31E9F"><enum>(d)</enum><header>Joint returns</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/32">Section 32(b)(2)(B)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>$5,000</quote> and inserting “$10,000, and the earned income amount determined under subparagraph (A) shall be increased—</text><quoted-block style="OLC" display-inline="no-display-inline" id="H8B2B9988E4DE463AB8C42290523E7F00"><clause commented="no" display-inline="no-display-inline" id="H89DE59890FB24E2386841103A904125C"><enum>(i)</enum><text display-inline="yes-display-inline">by $2,059, in the case of a taxpayer with 1 or more qualifying children, and </text></clause><clause commented="no" display-inline="no-display-inline" id="HAE9D9C089F544714864F017FBB25537B"><enum>(ii)</enum><text display-inline="yes-display-inline">by $9,151, in the case of a taxpayer with no qualifying children.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H65EFE49AA5AE4E5F9352D33800E4B115"><enum>(e)</enum><header>Inflation adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/32">Section 32(j)(1)</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="H5AF864729C23431E958A75E8EC73297E"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>2015</quote> and inserting <quote>2026</quote>,</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H01D894C6F8014BE283713EB11946154F"><enum>(2)</enum><text>by striking clauses (i) and (ii) of subparagraph (B) thereof and redesignating clause (iii) of such subparagraph as clause (ii), and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H362D188247CF4D4EAD0D568DB26BA72D"><enum>(3)</enum><text>by inserting before clause (ii) of subparagraph (B) thereof, as so redesignated, the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HA19E3B4821B34224AF91D322998AF7A5"><clause id="H3E4C81416A454E8A85AA91F4AE15EDBD"><enum>(i)</enum><text>in the case of amounts in subsection (b)(2), <quote>calendar year 2025</quote> for <quote>calendar year 2016</quote>, and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE872848C5B2B4BC998C4029AE1BC925F"><enum>(f)</enum><header>Effective date</header><paragraph commented="no" display-inline="no-display-inline" id="HE172B1ECB9904D048539DD0CD0133664"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAE222C6D2EAC4F19A993429150FAE984"><enum>(2)</enum><header>Nonapplication to exempted children</header><subparagraph commented="no" display-inline="no-display-inline" id="H292A1E39F9E8471A847B3619F119A79A"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>Subject to subparagraph (B), in the case of any eligible individual (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/32">section 32(c)(1)</external-xref> of the Internal Revenue Code of 1986) who has any qualifying children for the taxable year who are exempted children, <external-xref legal-doc="usc" parsable-cite="usc/26/32">section 32</external-xref> of the Internal Revenue Code of 1986 shall be applied with respect to such eligible individual as if the amendments made by subsections (a) through (e) of this section had not been enacted.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1765D4F1C0A241CB9EFCD6CE294ED086"><enum>(B)</enum><header>Separate application</header><text>In the case of any eligible individual (as so defined) who has—</text><clause commented="no" display-inline="no-display-inline" id="HA3EF0414614842DBBBA9C16E4539CE9C"><enum>(i)</enum><text display-inline="yes-display-inline">any qualifying children for the taxable year who are not exempted children, and</text></clause><clause commented="no" display-inline="no-display-inline" id="H13415AB8E3FD4EB0B3A5BD34D2220F32"><enum>(ii)</enum><text>any qualifying children for such taxable year who are exempted children,</text></clause><continuation-text continuation-text-level="subparagraph">section 32 of the Internal Revenue Code of 1986 shall be applied separately with respect to the children described in clause (i) and (pursuant to the rules described in subparagraph (A)) the children described in clause (ii).</continuation-text></subparagraph><subparagraph id="H3832845C30874C2BA9F73CFCCB5A67DF"><enum>(C)</enum><header>Exempted child</header><text>For purposes of this paragraph, the term <term>exempted child</term> means an individual who is described in subparagraph (A)(ii) or (B) of section 152(c)(3).</text></subparagraph></paragraph></subsection></section><section commented="no" id="H2911B5DDEBBD4470B065CD4697112C86"><enum>202.</enum><header>Elimination of additional exemption for dependents</header><subsection commented="no" display-inline="no-display-inline" id="HA08D2B3BA027497ABD06CDC099F82EBF"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/151">Section 151(d)(5)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H799DD1F8FD884A3693F37D90DEEE2DB9"><paragraph commented="no" display-inline="no-display-inline" id="HD6C496C1FEF44A98B6333A69B0A3A9CA"><enum>(5)</enum><header>Elimination of additional exemption for dependents for taxable years after 2025</header><text>In the case of a taxable year beginning after December 31, 2025—</text><subparagraph commented="no" display-inline="no-display-inline" id="HC00F60B4964A407C87255ADAF12DB525"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of subsection (c), the term <term>exemption amount</term> means zero.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAAAFBB9F5D8647E3A778D3C62313C498"><enum>(B)</enum><header>References</header><text display-inline="yes-display-inline">For purposes of any other provision of this title, the reduction of the exemption amount to zero under subparagraph (A) shall not be taken into account in determining whether a deduction is allowed or allowable, or whether a taxpayer is entitled to a deduction, under this section.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="HC4122978E2D24BF99842B15018282AFB"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="H894B0A55437842CE9B8AE8E1480F1DF9"><enum>203.</enum><header>Elimination of head of household filing status</header><subsection commented="no" display-inline="no-display-inline" id="HDF6F44B826CE405A919B575D52A60B2B"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1">Section 1</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="HC835539B0D434722B634BB7B52400562"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsection (b),</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB487429E893E4077BC65394B61BD1D97"><enum>(2)</enum><text>in subsection (c)—</text><subparagraph commented="no" display-inline="no-display-inline" id="HB763523CB7904E7887578EA6499F5551"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text style="tax" level="subsection">and heads of households</header-in-text></quote>, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HACD941F895CD4EA1B55EE22F933E396A"><enum>(B)</enum><text>by striking <quote>or the head of a household as defined in section 2(b)</quote>,</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H36843A050751493181A2A12AA11019F5"><enum>(3)</enum><text>in subsection (f), by striking <quote>(b),</quote> each place it appears,</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAC06076437484D12AE480915B1665287"><enum>(4)</enum><text>in subsection (i)—</text><subparagraph commented="no" display-inline="no-display-inline" id="H8B0CE9EE3B464D5497B7CB27873EA0AF"><enum>(A)</enum><text>in paragraph (1)—</text><clause commented="no" display-inline="no-display-inline" id="HC0505200EC4E4493AAEC1361D4093C01"><enum>(i)</enum><text>in subparagraph (A)(i), by striking <quote>(b),</quote>, </text></clause><clause commented="no" display-inline="no-display-inline" id="HC13E9B12070F479083CF9725F21F4925"><enum>(ii)</enum><text>in subparagraph (B)—</text><subclause commented="no" display-inline="no-display-inline" id="HDE736607D9334D2799C05B8865508C18"><enum>(I)</enum><text>in clause (i), by adding <quote>and</quote> at the end,</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H2C67DD4A383443DA9DA1270D4A57CC18"><enum>(II)</enum><text>by striking clause (ii), and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H3BD094244B6E40D5B998D4D0AE697689"><enum>(III)</enum><text>by redesignating clause (iii) as clause (ii), and</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="HF0E9DE9CEA6A44ADA4875E1D4007467E"><enum>(iii)</enum><text>in subparagraph (C), by striking <quote>subparagraph (B)(iii)</quote> and inserting <quote>subparagraph (B)(ii)</quote>,</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H181475FBB5244B7ABD6CB79FEEB1D62E"><enum>(B)</enum><text>in paragraph (2), by striking <quote>(b),</quote>, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2A14495E07D94D628DC45583DEDFA4E9"><enum>(C)</enum><text>in paragraph (3)—</text><clause commented="no" display-inline="no-display-inline" id="H91ED24569E5F4129847BE585F7A3319F"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>(b),</quote>,</text></clause><clause commented="no" display-inline="no-display-inline" id="HECB92A780DE2466ABE262C1F68633BFD"><enum>(ii)</enum><text>in subparagraph (B)—</text><subclause id="H857F1585A86644749787820EEF1F6456"><enum>(I)</enum><text>by striking clause (ii), and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H3311CAA5526E406D9613C19DAADFCDE2"><enum>(II)</enum><text>by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively, and</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H1D1E4170533B4F7BAE4ACDC261EDC951"><enum>(iii)</enum><text>in subparagraph (C), by striking <quote>clauses (i), (ii), and (iii)</quote> and inserting <quote>clauses (i) and (ii)</quote>, and</text></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3A9CE8B69E3D4F7EA6FAA916E4658A59"><enum>(5)</enum><text>in subsection (j)—</text><subparagraph commented="no" display-inline="no-display-inline" id="HB96A7408365749C8BE497153187E6FDE"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text><clause commented="no" display-inline="no-display-inline" id="HC0A050F67807483E8C7E5CE312AFFEBD"><enum>(i)</enum><text>by striking subparagraph (B), and</text></clause><clause commented="no" display-inline="no-display-inline" id="H37B5DA1FDCE548BD934183F5C26471AE"><enum>(ii)</enum><text>in subparagraph (C), by striking <quote><header-in-text style="tax" level="subsection">and heads of households</header-in-text></quote> in the heading,</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H87F44AA12389488BA71F8BF95ACE1742"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (3)(B)(ii), by striking <quote>or head of household</quote>, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD9DB4975A6E141998056560CA4BFC711"><enum>(C)</enum><text>in paragraph (5)(B)—</text><clause commented="no" display-inline="no-display-inline" id="HB1C38902754146DABFE9DF0B9624653F"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (i)—</text><subclause commented="no" display-inline="no-display-inline" id="H1083F7D2284A413F8D09AAEC30469401"><enum>(I)</enum><text display-inline="yes-display-inline">by striking subclause (II), and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H39715E971F364405AE017F4F03CC753F"><enum>(II)</enum><text>by redesignating subclauses (III) and (IV) as subclauses (II) and (III), respectively, and</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="HB42906B9DAF44A72BE9FA2C1937C753C"><enum>(ii)</enum><text>in clause (ii)—</text><subclause commented="no" display-inline="no-display-inline" id="H5CE09E36193447629773F94E7203851E"><enum>(I)</enum><text display-inline="yes-display-inline">by striking subclause (II), and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H7D4BEE40439F4728B6C806B5EE611824"><enum>(II)</enum><text>by redesignating subclauses (III) and (IV) as subclauses (II) and (III), respectively.</text></subclause></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H29E30D1A40DC454EB8A864344871A28F"><enum>(b)</enum><header>Conforming amendments</header><paragraph commented="no" display-inline="no-display-inline" id="H8CEA1F7A2C9442BEBB1EB69DFE114699"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/25B">Section 25B(b)(2)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HF2F716CF1FDF418DA96BAD84993A3F7C"><paragraph commented="no" display-inline="no-display-inline" id="H08A97A1419D847BE8A07C8118E61D1B9"><enum>(2)</enum><header>Other returns</header><text>In the case of any taxpayer not described in paragraph (1), the applicable percentage shall be determined under paragraph (1) except that such paragraph shall be applied by substituting for each dollar amount therein (as adjusted under paragraph (3)) a dollar amount equal to 50 percent of such dollar amount.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H237BBE8395854261BBA5CD088D439179"><enum>(2)</enum><text>Section 25E(b)(2) of such Code is amended—</text><subparagraph commented="no" display-inline="no-display-inline" id="H0A67F665B038483A85960221510566BA"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), by adding <quote>and</quote> at the end, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8E41E11A52354E88865753A3F8771027"><enum>(B)</enum><text>by striking subparagraphs (B) and (C) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HECE58E04A69440CFA7BECA56F5CECCEA"><subparagraph commented="no" display-inline="no-display-inline" id="H1B723BE14D204D9FBF2963041568F7CB"><enum>(B)</enum><text>in the case of a taxpayer not described in subparagraph (A), $75,000.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H864F64D4F69A46D098C2ECBF666C4EEB"><enum>(3)</enum><text>Section 30D(f)(10)(B) of such Code is amended—</text><subparagraph commented="no" display-inline="no-display-inline" id="H24E0209F62804BC085D6214163F62C2B"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (i), by adding <quote>and</quote> at the end, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD475AA4BC77940ADAEA289CA477A3AA4"><enum>(B)</enum><text>by striking clauses (ii) and (iii) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H712A8A3025CF49A3874A5D206B88BB38"><clause commented="no" display-inline="no-display-inline" id="H5F05EA49805F449F8EF0B8D93DFC9D49"><enum>(ii)</enum><text>in the case of a taxpayer not described in clause (i), $150,000.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA3CB6DF1F0AD4A40BF5BC7E40299210C"><enum>(4)</enum><text>Section 36B(b)(3)(B)(ii)(I)(aa) of such Code is amended by striking <quote>and heads of households</quote>.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAA727340A17F4846BE98D84F7C52CCE1"><enum>(5)</enum><text display-inline="yes-display-inline">Section 63(c) of such Code is amended—</text><subparagraph commented="no" display-inline="no-display-inline" id="HFB7020BF3C804007A2601A3EDB291933"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text><clause commented="no" display-inline="no-display-inline" id="H6225943780AE43C3AAC69B7506C5AA58"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A)(ii), by adding <quote>or</quote> at the end,</text></clause><clause commented="no" display-inline="no-display-inline" id="HF04BDE4B590D4C538F34B7BB36D56F64"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking subparagraph (B), and</text></clause><clause commented="no" display-inline="no-display-inline" id="H1CFB4B7D967F472682DDA41118FFC570"><enum>(iii)</enum><text>by redesignating subparagraph (C) as subparagraph (B),</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5F2ADC8CFBFA411195DCD7FC894DAB84"><enum>(B)</enum><text>in paragraph (4), by striking <quote>, (2)(C),</quote> each place it appears, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC1722959C9F843B6BD4A10DF8C34867D"><enum>(C)</enum><text>in paragraph (7)—</text><clause commented="no" display-inline="no-display-inline" id="HE1ACACFF59E84C00831244BDCB13F0ED"><enum>(i)</enum><text display-inline="yes-display-inline">by striking subparagraph (A) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H1213B1AA958C484985D94CB701EFBE92"><subparagraph commented="no" display-inline="no-display-inline" id="H150126201DBE45778C5AC9A8A45DC2E6"><enum>(A)</enum><header>Increase in standard deduction</header><text>Paragraph (2)(B) shall be applied by substituting <quote>$12,000</quote> for <quote>$3,000</quote>.</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></clause><clause commented="no" display-inline="no-display-inline" id="HF7C3FE8516484F0C8DB4C4C427A0BD65"><enum>(ii)</enum><text>in subparagraph (B)—</text><subclause commented="no" display-inline="no-display-inline" id="HE7094B951FD94A638ED2313E74497739"><enum>(I)</enum><text display-inline="yes-display-inline">in clause (i), by striking <quote>paragraphs (2)(B) and (2)(C)</quote> and inserting <quote>paragraph (2)(B)</quote>, and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H6484B103ADB84C1C96D9015FADCC44AD"><enum>(II)</enum><text>in clause (ii), by striking <quote>$18,000 and $12,000 amounts</quote> and inserting <quote>$12,000 amount</quote>.</text></subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H499D111CA0E74E71A65FDCD345428DE0"><enum>(6)</enum><text>Section 68(b) of such Code is amended—</text><subparagraph commented="no" display-inline="no-display-inline" id="H35728BA34F064E1DBBC999AC0B2769D9"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text><clause commented="no" display-inline="no-display-inline" id="H88BCA9C1DCA940468BE614CA86BE5DA7"><enum>(i)</enum><text display-inline="yes-display-inline">by striking subparagraph (B),</text></clause><clause commented="no" display-inline="no-display-inline" id="H09903E4C36C44E0099FE8100C6094381"><enum>(ii)</enum><text>in subparagraph (C), by striking <quote>or head of household</quote>, and</text></clause><clause commented="no" display-inline="no-display-inline" id="H2630EE09FE184069A09FB4D46BCF1070"><enum>(iii)</enum><text>by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively, and</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF26BAD281A2A403E917A23C6021752D1"><enum>(B)</enum><text>in paragraph (2), by striking <quote>subparagraphs (A), (B), and (C)</quote> and inserting <quote>subparagraphs (A) and (B)</quote>.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA36BF9D87A9245639C76A6FE979119A4"><enum>(7)</enum><text>Section 904(b)(3)(E)(i)(I) of such Code is amended by striking <quote>(b),</quote>.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB1BC279B87B5491198D3478CA2D9E1E1"><enum>(8)</enum><text display-inline="yes-display-inline">Section 6012(a)(1) of such Code is amended—</text><subparagraph commented="no" display-inline="no-display-inline" id="H74A82D8C40434629B9552ACADE9D19BB"><enum>(A)</enum><text>in subparagraph (A)—</text><clause commented="no" display-inline="no-display-inline" id="HA37618DAFE424639A91F5FA815A3F4A9"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (i), by striking <quote>is not a head of a household (as defined in section 2(b)),</quote>,</text></clause><clause commented="no" display-inline="no-display-inline" id="H5472B704D3FA4889BEBE0DD197437969"><enum>(ii)</enum><text>by striking clause (ii),</text></clause><clause commented="no" display-inline="no-display-inline" id="H8FF27136543C477385CAFCE1E6DA005D"><enum>(iii)</enum><text>by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively, and</text></clause><clause commented="no" display-inline="no-display-inline" id="H32B25BF60CF14DC5811ACBF8394DC674"><enum>(iv)</enum><text>in the flush text at the end, by striking <quote>Clause (iv)</quote> and inserting <quote>Clause (iii)</quote>, and</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H020B287A60424DEB8071C830188F553F"><enum>(B)</enum><text>in subparagraph (B)—</text><clause commented="no" display-inline="no-display-inline" id="H106761C99FF0411EB3666021110E6DBF"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>clause (i), (ii), or (iii)</quote> and inserting <quote>clause (i) or (ii)</quote>, and</text></clause><clause commented="no" display-inline="no-display-inline" id="HB816FC850CE34EB1BF5225174079A20A"><enum>(ii)</enum><text>by striking <quote>clause (iv)</quote> and inserting <quote>clause (iii)</quote>.</text></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7FF6D7F71AAF44A8BFB1A210EE204416"><enum>(9)</enum><text>Section 6433(b)(3)(B) of such Code is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HF7AC9ADB2A9C4775861CFA988853CB9E"><subparagraph id="HBD048DA6A67F40FBB0DAFFA1F15D83DE"><enum>(B)</enum><header>Other returns</header><text>In the case of any taxpayer who is not filing a joint return and who is not a surviving spouse (as defined in section 2(a)), the applicable dollar amount and the phaseout range shall be ½ of the amounts applicable under subparagraph (A) (as so adjusted).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5802E69F67A6425B9B46BC480CC3A8F5"><enum>(10)</enum><text>Section 6695(g) of such Code is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HB72133AE971F44D5A8C5701E747995B7"><subsection commented="no" display-inline="no-display-inline" id="H1F89D50BF6B7453F8A598006B2FC65E0"><enum>(g)</enum><header>Failure To be diligent in determining eligibility for certain tax benefits</header><text>Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining eligibility for, or the amount of, the credit allowable by section 25A(a)(1), 32, or 36C shall pay a penalty of $500 for each such failure.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H787B7A75B9444E7C96EBBF5A9B60F748"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="H5CACD81C47C74B4EB3385ADC8C573C75"><enum>204.</enum><header>Exclusion of children from credit for expenses for household and dependent care services necessary for gainful employment</header><subsection id="H3B94B519D4334DA5820B70066B4FC371"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/21">Section 21</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="H3A963A6E73CE468281682A24E6B2481F"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)—</text><subparagraph commented="no" display-inline="no-display-inline" id="HB93D0578F99A4A31BDDA844D6D54CCD0"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text><clause commented="no" display-inline="no-display-inline" id="H03EC9713957E406EA8553F5CD147B78E"><enum>(i)</enum><text display-inline="yes-display-inline">by striking subparagraph (A),</text></clause><clause commented="no" display-inline="no-display-inline" id="H44BCA8EC0D2843B5B66ECD8275037F58"><enum>(ii)</enum><text>in subparagraph (B), by inserting <quote>who has attained age 18 and</quote> before <quote>who is physically or mentally incapable</quote>, and</text></clause><clause commented="no" display-inline="no-display-inline" id="H4C122A3D867849EA8EBF8B33B278810B"><enum>(iii)</enum><text>by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively, and</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9B51253AF0C14702B066B1807399F989"><enum>(B)</enum><text>in paragraph (2), by striking subparagraph (B) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H9490F41F3CA04C3F98F7CDC2FD0C2706"><subparagraph commented="no" display-inline="no-display-inline" id="H3EE1C35188B24C77835FB4EF7349CDC0"><enum>(B)</enum><header>Exception</header><text>Employment-related expenses described in subparagraph (A) which are incurred for services outside the taxpayer's household shall be taken into account only if incurred for the care of a qualifying individual who regularly spends at least 8 hours each day in the taxpayer's household.</text></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEAEA3403866F4EE09C07CD6641F56557"><enum>(2)</enum><text>in subsection (d)(2), by striking <quote>subsection (b)(1)(C)</quote> and inserting <quote>subsection (b)(1)(B)</quote>, and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H03EE22EB740241358B31D6A299872AF4"><enum>(3)</enum><text>in subsection (e)(5)—</text><subparagraph commented="no" display-inline="no-display-inline" id="H51BA0D3B0A324EF98BB2AD6472154DEF"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking <quote>is under the age of 13 or</quote> and inserting <quote>has attained age 18 and</quote>, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0198B194BACA4923AE119B37A789E1DB"><enum>(B)</enum><text>in the flush text at the end, by striking <quote>subparagraph (A) or (B) of subsection (b)(1) (whichever is appropriate)</quote> and inserting <quote>subsection (b)(1)(A)</quote>.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H02233C0564724089AFD8180D7612C814"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section><section id="HA97DE64CF1EB4A9699141B467382C9B2"><enum>205.</enum><header>Limitation on deduction for State and local taxes of individuals</header><subsection commented="no" display-inline="no-display-inline" id="H74E2815970354BDDAE43CF66C16D9850"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/164">Section 164(b)(6)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>beginning after December 31, 2017, and before January 1, 2026</quote> and inserting <quote>beginning after December 31, 2025</quote>.</text></subsection><subsection id="H7D6DCBA4E411445C9838F113CF673B51"><enum>(b)</enum><header>Clerical amendment</header><text>The heading for section 164(b)(6) of such Code is amended by striking <quote><header-in-text level="paragraph" style="OLC">2018 through 2025</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">after 2025</header-in-text></quote>. </text></subsection><subsection commented="no" display-inline="no-display-inline" id="HE41DDA1117594CF4A75B94496D2BB2CD"><enum>(c)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>