I 

118TH CONGRESS 

2D SESSION H. R. 7547 

To amend the Internal Revenue Code of 1986 to establish a refundable 

young adult tax credit with monthly advance payment. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 5, 2024 

Mr. MCGARVEY (for himself, Mrs. WATSON COLEMAN, Mr. CARSON, Mr. 

LANDSMAN, Ms. LEE of California, Ms. NORTON, Mrs. RAMIREZ, and 

Mr. THANEDAR) introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

a refundable young adult tax credit with monthly advance payment. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Young Adult Tax 

5 Credit Act’’. 


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1 SEC. 2. ESTABLISHMENT OF REFUNDABLE YOUNG ADULT 

2 TAX CREDIT WITH MONTHLY ADVANCE PAY3 MENT. 

4 (a) IN GENERAL.—Subpart A of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 is amended by inserting after section 24 the fol7 lowing new sections: 

8 ‘‘SEC. 24A. MONTHLY YOUNG ADULT TAX CREDIT. 

9 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al10 lowed as a credit against the tax imposed by this chapter 

11 for the taxable year the sum of the monthly specified 

12 young adult allowances determined with respect to the tax13 payer under subsection (b) for each calendar month dur14 ing such taxable year. 

15 ‘‘(b) MONTHLY SPECIFIED YOUNG ADULT ALLOW16 ANCE.— 

17 ‘‘(1) IN GENERAL.—For purposes of this sec18 tion, the term ‘monthly specified young adult allow19 ance’ means the sum of $500 for each taxpayer or 

20 dependent of the taxpayer who is a specified young 

21 adult for any calendar month. 

22 ‘‘(2) MONTHLY SPECIFIED YOUNG ADULT AL23 LOWANCE.—In the case of any month beginning 

24 after December 31, 2024, the $500 amount in para25 graph (1) shall be increased by an amount equal 

26 to— 


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1 ‘‘(A) such dollar amount, multiplied by— 

2 ‘‘(B) the percentage (if any) by which— 

3 ‘‘(i) the CPI (as defined in section 

4 1(f)(4)) for the calendar year preceding 

5 the calendar year in which such month be6 gins, exceeds 

7 ‘‘(ii) the CPI (as so defined) for cal8 endar year 2024. 

9 ‘‘(c) SPECIFIED YOUNG ADULT.—The term ‘specified 

10 young adult’ means an individual— 

11 ‘‘(1) who, as of the close of such month, is at 

12 least 18 and will not have attained age 25, and 

13 ‘‘(2) who either is a citizen, national, or resi14 dent of the United States. 

15 ‘‘(d) DENIAL OF CREDIT TO DEPENDENTS.—No 

16 credit shall be allowed under this section to any individual 

17 with respect to whom a deduction under section 151 is 

18 allowable to another taxpayer for a taxable year beginning 

19 in the calendar year in which such individual’s taxable 

20 year begins. 

21 ‘‘(e) CREDIT REFUNDABLE.—If the taxpayer (in the 

22 case of a joint return, either spouse) has a principal place 

23 of abode (determined as provided in section 32) in the 

24 United States or Puerto Rico for more than one-half of 

25 any calendar month during the taxable year, so much of 


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1 the credit otherwise allowed under subsection (a) as is at2 tributable to monthly specified young adult allowances 

3 with respect to any such calendar month shall be allowed 

4 under subpart C (and not allowed under this subpart). 

5 ‘‘(f) IDENTIFICATION REQUIREMENTS.— 

6 ‘‘(1) DEPENDENT IDENTIFICATION REQUIRE7 MENT.—No credit shall be allowed under this section 

8 to a taxpayer with respect to any dependent unless 

9 the taxpayer includes the name and taxpayer identi10 fication number of such dependent on the return of 

11 tax for the taxable year and such taxpayer identi12 fication number was issued on or before the due date 

13 for filing such return. 

14 ‘‘(2) TAXPAYER IDENTIFICATION REQUIRE15 MENT.—No credit shall be allowed under this section 

16 if the taxpayer identification number of the taxpayer 

17 was issued after the due date for filing the return 

18 for the taxable year. 

19 ‘‘(g) RECONCILIATION OF CREDIT AND MONTHLY

20 ADVANCE YOUNG ADULT PAYMENTS.— 

21 ‘‘(1) IN GENERAL.—The amount otherwise de22 termined under subsection (a) with respect to any 

23 taxpayer for any taxable year shall be reduced (but 

24 not below zero) by the aggregate amount of pay25 ments made under section 7527B to such taxpayer 


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1 for one or more calendar months in such taxable 

2 year. Any failure to so reduce the credit shall be 

3 treated as arising out of a mathematical or clerical 

4 error and assessed according to section 6213(b)(1). 

5 ‘‘(2) RECAPTURE OF EXCESS ADVANCE PAY6 MENTS IN CERTAIN CIRCUMSTANCES.—In the case 

7 of a taxpayer described in paragraph (3) for any 

8 taxable year, the tax imposed by this chapter for 

9 such taxable year shall be increased by the excess (if 

10 any) of— 

11 ‘‘(A) the aggregate amount of payments 

12 made to the taxpayer under section 7527B for 

13 one or more calendar months in such taxable 

14 year, over 

15 ‘‘(B) the amount determined under sub16 section (a) with respect to the taxpayer for such 

17 taxable year (without regard to paragraph (1) 

18 of this subsection). 

19 ‘‘(3) TAXPAYERS SUBJECT TO RECAPTURE.— 

20 ‘‘(A) FRAUD OR RECKLESS OR INTEN21 TIONAL DISREGARD OF RULES AND REGULA22 TIONS.—A taxpayer is described in this para23 graph with respect to any taxable year if the 

24 Secretary determines that the amount described 

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1 payer for such taxable year was determined on 

2 the basis of fraud or a reckless or intentional 

3 disregard of rules and regulations. 

4 ‘‘(B) CERTAIN PAYMENTS MADE AFTER

5 NOTICE FROM SECRETARY.—If the Secretary 

6 notifies a taxpayer under section 7527B(e)(2) 

7 that such taxpayer is subject to recapture with 

8 respect to any payments— 

9 ‘‘(i) such taxpayer shall be treated as 

10 described in this paragraph, and 

11 ‘‘(ii) the increase determined under 

12 paragraph (2) by reason of this subpara13 graph shall not exceed the aggregate 

14 amount of such payments. 

15 ‘‘(C) OTHER CIRCUMSTANCES TO PREVENT

16 ABUSE.—A taxpayer is described in this para17 graph with respect to any taxable year pursuant 

18 to regulations or other guidance of the Sec19 retary describing other recapture circumstances 

20 to facilitate the administration and enforcement 

21 by the Secretary of section 7527B to minimize 

22 the amount of advance payments made under 

23 section 7527B to ineligible individuals and to 

24 prevent abuse. 


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1 ‘‘(4) COORDINATION WITH POSSESSIONS OF

2 THE UNITED STATES.—For purposes of this sub3 section, payments made under section 7527B include 

4 payments made by any jurisdiction other than the 

5 United States under section 7527B of the income 

6 tax law of such jurisdiction, and advance payments 

7 made by American Samoa pursuant to a plan de8 scribed in subsection (e)(3)(B). Any increase in tax 

9 imposed on a taxpayer by reason of paragraph (2) 

10 of the income tax law of a jurisdiction other than 

11 the United States shall be considered to reduce the 

12 aggregate amount of payments made to such tax13 payer by such jurisdiction. In carrying out this sec14 tion, the Secretary shall coordinate with each posses15 sion of the United States to prevent any application 

16 of this paragraph that is inconsistent with the pur17 poses of this subsection. 

18 ‘‘(h) APPLICATION OF CREDIT IN POSSESSIONS.— 

19 ‘‘(1) MIRROR CODE POSSESSIONS.— 

20 ‘‘(A) IN GENERAL.—The Secretary shall 

21 pay to each possession of the United States 

22 with a mirror code tax system amounts equal to 

23 the loss (if any) to that possession by reason of 

24 the application of this section (determined with25 out regard to this subsection) with respect to 


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1 taxable years beginning in calendar years after 

2 2023. Such amounts shall be determined by the 

3 Secretary based on information provided by the 

4 government of the respective possession. 

5 ‘‘(B) COORDINATION WITH CREDIT AL6 LOWED AGAINST UNITED STATES INCOME

7 TAXES.—No credit shall be allowed under this 

8 section for any taxable year to any individual to 

9 whom a credit is allowable against taxes im10 posed by a possession of the United States with 

11 a mirror code tax system by reason of the appli12 cation of this section in such possession for 

13 such taxable year. 

14 ‘‘(C) MIRROR CODE TAX SYSTEM.—For 

15 purposes of this paragraph, the term ‘mirror 

16 code tax system’ means, with respect to any 

17 possession of the United States, the income tax 

18 system of such possession if the income tax li19 ability of the residents of such possession under 

20 such system is determined by reference to the 

21 income tax laws of the United States as if such 

22 possession were the United States. 

23 ‘‘(2) CROSS REFERENCES RELATED TO APPLI24 CATION OF CREDIT TO RESIDENTS OF PUERTO

25 RICO.— 


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1 ‘‘(A) For application of refundable credit 

2 to residents of Puerto Rico, see subsection (d). 

3 ‘‘(B) For application of advance payment 

4 to residents of Puerto Rico, see section 

5 7527B(b)(2). 

6 ‘‘(3) AMERICAN SAMOA.— 

7 ‘‘(A) IN GENERAL.—The Secretary shall 

8 pay to American Samoa amounts estimated by 

9 the Secretary as being equal to the aggregate 

10 benefits that would have been provided to resi11 dents of American Samoa by reason of the ap12 plication of this section for taxable years begin13 ning in calendar years after 2023 if the provi14 sions of this section had been in effect in Amer15 ican Samoa (applied as if American Samoa 

16 were the United States and without regard to 

17 the application of this section to residents of 

18 Puerto Rico under subsection (d)). 

19 ‘‘(B) DISTRIBUTION REQUIREMENT.—Sub20 paragraph (A) shall not apply unless American 

21 Samoa has a plan, which has been approved by 

22 the Secretary, under which American Samoa 

23 will promptly distribute such payments to its 

24 residents. 


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1 ‘‘(C) COORDINATION WITH CREDIT AL2 LOWED AGAINST UNITED STATES INCOME

3 TAXES.— 

4 ‘‘(i) IN GENERAL.—In the case of a 

5 taxable year with respect to which a plan 

6 is approved under subparagraph (B), this 

7 section (other than this subsection) shall 

8 not apply to any individual eligible for a 

9 distribution under such plan. 

10 ‘‘(ii) APPLICATION OF SECTION IN

11 EVENT OF ABSENCE OF APPROVED

12 PLAN.—In the case of a taxable year with 

13 respect to which a plan is not approved 

14 under subparagraph (B), subsection (d) 

15 shall be applied by substituting ‘, Puerto 

16 Rico, or American Samoa’ for ‘or Puerto 

17 Rico’. 

18 ‘‘(4) TREATMENT OF PAYMENTS.—For pur19 poses of section 1324 of title 31, United States 

20 Code, the payments under this subsection shall be 

21 treated in the same manner as a refund due from 

22 a credit provision referred to in subsection (b)(2) of 

23 such section. 

24 ‘‘(i) REGULATIONS.—The Secretary shall issue such 

25 regulations or other guidance as the Secretary determines 


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1 necessary or appropriate to carry out the purposes of this 

2 section.’’. 

3 (b) MONTHLY PAYMENT OF YOUNG ADULT TAX

4 CREDIT.—Chapter 77 of such Code is amended by insert5 ing after section 7527A the following new section: 

6 ‘‘SEC. 7527B. MONTHLY PAYMENTS OF YOUNG ADULT TAX 

7 CREDIT. 

8 ‘‘(a) IN GENERAL.—The Secretary shall establish a 

9 program for making payments to taxpayers with respect 

10 to each calendar month equal to the monthly advance 

11 young adult payment determined with respect to such tax12 payer for such month. 

13 ‘‘(b) MONTHLY ADVANCE YOUNG ADULT PAY14 MENT.— 

15 ‘‘(1) IN GENERAL.—For purposes of this sec16 tion and except as otherwise provided in this section, 

17 the term ‘monthly advance young adult payment’ 

18 means, with respect to any taxpayer for any cal19 endar month, the amount (if any) which is estimated 

20 by the Secretary as being equal to the monthly spec21 ified young adult allowance which would be deter22 mined under section 24A(b) with respect to such 

23 taxpayer for such calendar month. 

24 ‘‘(2) RESIDENCE REQUIREMENT.—Unless de25 termined by the Secretary based on any information 


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1 known to the Secretary, no monthly specified young 

2 adult allowance shall be determined with respect to 

3 such taxpayer for a calendar month unless the tax4 payer (in the case of a joint return, either spouse) 

5 has a principal place of abode (determined as pro6 vided in section 32) in the United States or Puerto 

7 Rico for more than one-half of the month. 

8 ‘‘(c) ON-LINE INFORMATION PORTAL.— 

9 ‘‘(1) ON-LINE INFORMATION PORTAL.—The 

10 Secretary shall establish an on-line portal which al11 lows taxpayers to— 

12 ‘‘(A) subject to such restrictions as the 

13 Secretary may provide, elect to begin or cease 

14 receiving payments under this section, 

15 ‘‘(B) provide information to the Secretary 

16 which is relevant in determining the monthly 

17 advance young adult payment and the tax18 payer’s eligibility for such payment, including 

19 changes in expected dependent status for the 

20 following tax year, and 

21 ‘‘(C) subject to such restrictions as the 

22 Secretary may provide, elect to begin or cease 

23 an annual lump sum in lieu of monthly pay24 ments. 


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1 ‘‘(2) AVAILABILITY IN MULTIPLE LAN2 GUAGES.—The Secretary shall ensure that the on3 line portal described in paragraph (1) is available in 

4 multiple languages. 

5 ‘‘(3) ADMINISTRATION.—The Secretary shall 

6 identify and allocate the resources necessary to ad7 minister the on-line portal described in paragraph 

8 (1) and will create an internal review process to en9 sure the portal is frequently updated for efficiency, 

10 accuracy, and ease-of-use. 

11 ‘‘(4) MOBILE DEVICE COMPATIBILITY.—The on12 line portal described in paragraph (1) shall be com13 patible with mobile devices. 

14 ‘‘(5) DETERMINATION OF DEPENDENT STATUS

15 FOR PURPOSES OF ADVANCE PAYMENT.— 

16 ‘‘(A) IN GENERAL.—For purposes of deter17 mining the recipient of any monthly advance 

18 young adult payment under this section, a spec19 ified young adult shall be treated as a depend20 ent of a taxpayer if such young adult was 

21 claimed as a dependent of the taxpayer on the 

22 return of tax filed by such taxpayer for the ref23 erence year. 

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1 payer for any calendar year, the most recent 

2 of— 

3 ‘‘(i) in the case of a taxpayer who 

4 filed a return of tax for the last taxable 

5 year ending before the taxable year in 

6 which a payment is made, such taxable 

7 year, or 

8 ‘‘(ii) in the case of a taxpayer who 

9 filed a return of tax for the taxable year 

10 preceding the taxable year described in 

11 subparagraph (A), such preceding taxable 

12 year. 

13 ‘‘(C) RESOLUTION OF MULTIPLE CLAIMS

14 RELATING TO SAME DEPENDENT.—In the case 

15 of multiple returns of tax claiming a payment 

16 with respect to the same specified young adult 

17 as a result of a change in dependent status, the 

18 Secretary shall— 

19 ‘‘(i) establish procedures under which 

20 the Secretary expeditiously adjudicates tax21 payers’ competing claims with respect to 

22 such payment, 

23 ‘‘(ii) notify any taxpayer of the termi24 nation of eligibility for a payment pursuant 

25 to this subparagraph, and 


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1 ‘‘(iii) treat any error as arising due to 

2 a clerical error and assessed according to 

3 section 6213(b)(1) unless information indi4 cates that such error is due to fraud or de5 termined on the basis of fraud or a reck6 less or intentional disregard of rules and 

7 regulations. 

8 ‘‘(d) PROVISIONS RELATED TO FORM, MANNER, AND

9 TREATMENT OF PAYMENTS.— 

10 ‘‘(1) APPLICATION OF ELECTRONIC FUNDS PAY11 MENT REQUIREMENT.—The payments made by the 

12 Secretary under subsection (a) shall be made by 

13 electronic funds transfer to the same extent and in 

14 the same manner as if such payments were Federal 

15 payments not made under this title. 

16 ‘‘(2) DELIVERY OF PAYMENTS.—Notwith17 standing any other provision of law, the Secretary 

18 may certify and disburse refunds payable under this 

19 section electronically to— 

20 ‘‘(A) any account to which the payee au21 thorized, on or after January 1, 2023, the deliv22 ery of a refund of taxes under this title or of 

23 a Federal payment (as defined in section 3332 

24 of title 31, United States Code), 


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1 ‘‘(B) any account belonging to a payee 

2 from which that individual, on or after January 

3 1, 2023, made a payment of taxes under this 

4 title, or 

5 ‘‘(C) any Treasury-sponsored account (as 

6 defined in section 208.2 of title 31, Code of 

7 Federal Regulations). 

8 ‘‘(3) WAIVER OF CERTAIN RULES.—Notwith9 standing section 3325 of title 31, United States 

10 Code, or any other provision of law, with respect to 

11 any payment of a refund under this section, a dis12 bursing official in the executive branch of the United 

13 States Government may modify payment information 

14 received from an officer or employee described in 

15 section 3325(a)(1)(B) of such title for the purpose 

16 of facilitating the accurate and efficient delivery of 

17 such payment. Except in cases of fraud or reckless 

18 neglect, no liability under section 3325, 3527, 3528, 

19 or 3529 of title 31, United States Code, shall be im20 posed with respect to payments made under this 

21 paragraph. 

22 ‘‘(4) EXCEPTION FROM REDUCTION OR OFF23 SET.—Any applicable payment (as defined in para24 graph (5)(E)(iii)) shall not be— 


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1 ‘‘(A) subject to reduction or offset pursu2 ant to section 3716 or 3720A of title 31, 

3 United States Code, 

4 ‘‘(B) subject to reduction or offset pursu5 ant to subsection (c), (d), (e), or (f) of section 

6 6402, or 

7 ‘‘(C) reduced or offset by other assessed 

8 Federal taxes that would otherwise be subject 

9 to levy or collection. 

10 ‘‘(5) ASSIGNMENT OF BENEFITS.— 

11 ‘‘(A) IN GENERAL.—The right of any per12 son to any applicable payment shall not be 

13 transferable or assignable, at law or in equity, 

14 and no applicable payment shall be subject to 

15 execution, levy, attachment, garnishment, or 

16 other legal process, or the operation of any 

17 bankruptcy or insolvency law. 

18 ‘‘(B) ENCODING OF PAYMENTS.—In the 

19 case of an applicable payment described in sub20 paragraph (E)(iii)(I) that is paid electronically 

21 by direct deposit through the Automated Clear22 ing House (ACH) network, the Secretary of the 

23 Treasury (or the Secretary’s delegate) shall— 

24 ‘‘(i) issue the payment using a unique 

25 identifier that is reasonably sufficient to 


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1 allow a financial institution to identify the 

2 payment as an applicable payment, and 

3 ‘‘(ii) further encode the payment pur4 suant to the same specifications as re5 quired for a benefit payment defined in 

6 section 212.3 of title 31, Code of Federal 

7 Regulations. 

8 ‘‘(C) GARNISHMENT.— 

9 ‘‘(i) ENCODED PAYMENTS.—In the 

10 case of a garnishment order that applies to 

11 an account that has received an applicable 

12 payment that is encoded as provided in 

13 subparagraph (B), a financial institution 

14 shall follow the requirements and proce15 dures set forth in part 212 of title 31, 

16 Code of Federal Regulations, except— 

17 ‘‘(I) notwithstanding section 

18 212.4 of title 31, Code of Federal 

19 Regulations (and except as provided 

20 in subclause (II)), a financial institu21 tion shall not fail to follow the proce22 dures of sections 212.5 and 212.6 of 

23 such title with respect to a garnish24 ment order merely because such order 

25 has attached, or includes, a notice of 


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1 right to garnish federal benefits issued 

2 by a State young adult support en3 forcement agency, and 

4 ‘‘(II) a financial institution shall 

5 not, with regard to any applicable 

6 payment, be required to provide the 

7 notice referenced in sections 212.6 

8 and 212.7 of title 31, Code of Federal 

9 Regulations. 

10 ‘‘(ii) OTHER PAYMENTS.—In the case 

11 of a garnishment order (other than an 

12 order that has been served by the United 

13 States) that has been received by a finan14 cial institution and that applies to an ac15 count into which an applicable payment 

16 that has not been encoded as provided in 

17 subparagraph (B) has been deposited elec18 tronically on any date during the lookback 

19 period or into which an applicable payment 

20 that has been deposited by check on any 

21 date in the lookback period, the financial 

22 institution, upon the request of the account 

23 holder, shall treat the amount of the funds 

24 in the account at the time of the request, 

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1 ment (in addition to any amounts other2 wise protected under part 212 of title 31, 

3 Code of Federal Regulations), as exempt 

4 from a garnishment order without requir5 ing the consent of the party serving the 

6 garnishment order or the judgment cred7 itor. 

8 ‘‘(iii) LIABILITY.—A financial institu9 tion that acts in good faith in reliance on 

10 clause (i) or (ii) shall not be subject to li11 ability or regulatory action under any Fed12 eral or State law, regulation, court or other 

13 order, or regulatory interpretation for ac14 tions concerning any applicable payments. 

15 ‘‘(D) NO RECLAMATION RIGHTS.—This 

16 paragraph shall not alter the status of applica17 ble payments as tax refunds or other nonbenefit 

18 payments for purpose of any reclamation rights 

19 of the Department of the Treasury or the Inter20 nal Revenue Service as per part 210 of title 31, 

21 Code of Federal Regulations. 

22 ‘‘(E) DEFINITIONS.—For purposes of this 

23 paragraph— 

24 ‘‘(i) ACCOUNT HOLDER.—The term 

25 ‘account holder’ means a natural person 


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1 whose name appears in a financial institu2 tion’s records as the direct or beneficial 

3 owner of an account. 

4 ‘‘(ii) ACCOUNT REVIEW.—The term 

5 ‘account review’ means the process of ex6 amining deposits in an account to deter7 mine if an applicable payment has been de8 posited into the account during the 

9 lookback period. The financial institution 

10 shall perform the account review following 

11 the procedures outlined in section 212.5 of 

12 title 31, Code of Federal Regulations and 

13 in accordance with the requirements of sec14 tion 212.6 of title 31, Code of Federal 

15 Regulations. 

16 ‘‘(iii) APPLICABLE PAYMENT.—The 

17 term ‘applicable payment’ means— 

18 ‘‘(I) any payment made to an in19 dividual under this section (other than 

20 any payment made pursuant to para21 graph (6)), 

22 ‘‘(II) any advance payment made 

23 by a possession of the United States 

24 with a mirror code tax system (as de25 fined in section 24(h)) pursuant to an 


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1 election under paragraph (6)(B) 

2 which corresponds to a payment de3 scribed in subclause (I), and 

4 ‘‘(III) any advance payment 

5 made by American Samoa pursuant to 

6 a program for making such payments 

7 which is described in paragraph 

8 (6)(C)(ii). 

9 ‘‘(iv) GARNISHMENT.—The term ‘gar10 nishment’ means execution, levy, attach11 ment, garnishment, or other legal process. 

12 ‘‘(v) GARNISHMENT ORDER.—The 

13 term ‘garnishment order’ means a writ, 

14 order, notice, summons, judgment, levy, or 

15 similar written instruction issued by a 

16 court, a State or State agency, a munici17 pality or municipal corporation, or a State 

18 young adult support enforcement agency, 

19 including a lien arising by operation of law 

20 for overdue young adult support or an 

21 order to freeze the assets in an account, to 

22 effect a garnishment against a debtor. 

23 ‘‘(vi) LOOKBACK PERIOD.—The term 

24 ‘lookback period’ means the two month pe25 riod that begins on the date preceding the 


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1 date of account review and ends on the 

2 corresponding date of the month two 

3 months earlier, or on the last date of the 

4 month two months earlier if the cor5 responding date does not exist. 

6 ‘‘(6) APPLICATION OF ADVANCE PAYMENTS IN

7 THE POSSESSIONS OF THE UNITED STATES.— 

8 ‘‘(A) PUERTO RICO.— 

9 ‘‘(i) For application of young adult 

10 tax credit to residents of Puerto Rico, see 

11 section 24A(d). 

12 ‘‘(ii) For application of monthly ad13 vance young adult payments to residents of 

14 Puerto Rico, see subsection (b)(2). 

15 ‘‘(B) MIRROR CODE POSSESSIONS.—In the 

16 case of any possession of the United States with 

17 a mirror code tax system (as defined in section 

18 24A(h)(1)(C)), this section shall not be treated 

19 as part of the income tax laws of the United 

20 States for purposes of determining the income 

21 tax law of such possession unless such posses22 sion elects to have this section be so treated. 

23 ‘‘(e) NOTICE OF PAYMENTS.— 

24 ‘‘(1) IN GENERAL.—Not later than January 31 

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1 ing which the Secretary makes one or more pay2 ments to any taxpayer under this section, the Sec3 retary shall provide such taxpayer with a written no4 tice which includes— 

5 ‘‘(A) the taxpayer’s taxpayer identity (as 

6 defined in section 6103(b)(6)), 

7 ‘‘(B) the aggregate amount of such pay8 ments made to such taxpayer during such cal9 endar year, and 

10 ‘‘(C) such other information as the Sec11 retary determines appropriate. 

12 ‘‘(2) CERTAIN PAYMENTS SUBJECT TO RECAP13 TURE.—In the case of any payments made to a tax14 payer which the Secretary has determined are sub15 ject to recapture, the notice provided under para16 graph (1) to such taxpayer shall include the amount 

17 of such payments. 

18 ‘‘(f) NOTIFICATION OF CERTAIN EVENTS.—With re19 spect to any taxpayer receiving monthly advance young 

20 adult payments under this section with respect to any 

21 specified young adult, the Secretary shall, to the maximum 

22 extent practicable, provide reasonable advance notice of 

23 each of the following: 

24 ‘‘(1) Any month with respect to which such 

25 monthly advance young adult payment will increase 


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1 (relative to the preceding month) by reason of an in2 flation adjustment under section 24A(b)(2). 

3 ‘‘(2) Any month with respect to which such 

4 monthly advance young adult payment will be re5 duced (relative to the preceding month) by reason of 

6 such young adult ceasing to be a specified young 

7 adult by reason of attaining age 25. 

8 ‘‘(g) REGULATIONS.—The Secretary shall issue such 

9 regulations or other guidance as the Secretary determines 

10 necessary or appropriate to carry out the purposes of this 

11 section.’’. 

12 (c) CONFORMING AMENDMENTS.— 

13 (1) Section 26(b)(2) is amended by striking 

14 ‘‘and’’ at the end of subparagraph (Y), by striking 

15 the period at the end of subparagraph (Z) and in16 serting ‘‘, and’’, and by adding at the end the fol17 lowing new subparagraph: 

18 ‘‘(AA) section 24A(f)(2) (relating to recap19 ture of certain monthly advance young adult 

20 payments).’’. 

21 (2) Section 3402(f)(1)(C) is amended by insert22 ing ‘‘or section 24A (determined after application of 

23 subsection (g) thereof)’’ after ‘‘section 24 (deter24 mined after application of subsection (j) thereof)’’. 


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1 (3) Section 6211(b)(4)(A) is amended by insert2 ing ‘‘24A by reason of subsection (d) thereof,’’ after 

3 ‘‘24 by reason of subsections (d) and (i)(1) there4 of,’’. 

5 (4) Section 6213(g)(2)(I) is amended by insert6 ing ‘‘or section 24A(f) (relating to monthly young 

7 adult tax credit)’’ after ‘‘section 24(f) (relating to 

8 young adult tax credit)’’. 

9 (5) Section 6213(g)(2)(L) is amended by insert10 ing ‘‘24A,’’ after ‘‘24,’’. 

11 (6) Section 6695(g)(2) is amended by inserting 

12 ‘‘24A,’’ after ‘‘24,’’. 

13 (7) Paragraph (2) of section 1324(b) of title 

14 31, United States Code, as amended by the pre15 ceding provisions of this Act, is amended— 

16 (A) by inserting ‘‘24A,’’ after ‘‘24,’’, and 

17 (B) by inserting ‘‘7527B,’’ after ‘‘7527A,’’. 

18 (8) The table of sections for subpart A of part 

19 IV of subchapter A of chapter 1 is amended by in20 serting after the item relating to section 24 the fol21 lowing new items: 

‘‘Sec. 24A. Monthly young adult tax credit.’’. 

22 (9) The table of sections for chapter 77 is 

23 amended by inserting after the item relating to sec24 tion 7527A the following new item: 

‘‘Sec. 7527B. Monthly payments of young adult tax credit.’’. 


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1 (d) EFFECTIVE DATES.— 

2 (1) IN GENERAL.—Except as otherwise pro3 vided in this subsection, the amendments made by 

4 this section shall apply to taxable years beginning 

5 after December 31, 2023. 

6 (2) MONTHLY ADVANCE YOUNG ADULT PAY7 MENTS.—The amendments made by subsection (b) 

8 shall apply to calendar months beginning after De9 cember 31, 2023. 

10 SEC. 3. OUTREACH CAMPAIGN. 

11 (a) IN GENERAL.—The Secretary of the Treasury, in 

12 coordination with local community-based organizations, 

13 shall conduct an outreach campaign to— 

14 (1) provide information to the public regarding 

15 the young adult tax credit under section 24A of the 

16 Internal Revenue Code of 1986, as added by this 

17 Act, and 

18 (2) assist individuals with claiming such credit. 

19 (b) METHODS.—With respect to the outreach cam20 paign described in paragraph (1), the Secretary shall— 

21 (1) provide relevant information on the public 

22 website of the Internal Revenue Service, and 

23 (2) send direct mailings to individuals who have 

24 been identified as eligible for such credit for the tax25 able year. 


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1 (c) OUTREACH TO UNDERREPRESENTED POPU2 LATIONS.—In carrying out the outreach campaign de3 scribed in paragraph (1), the Secretary shall prioritize 

4 outreach to members of populations which are less likely 

5 than the general population to file taxes or have bank ac6 counts. 

Æ 


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