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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5256 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5256

  To amend the Internal Revenue Code of 1986 to enhance the child tax 
                    credit, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2024

  Mr. Romney introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To amend the Internal Revenue Code of 1986 to enhance the child tax 
                    credit, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Security Act''.

     TITLE I--CHILD TAX CREDIT AND TAX CREDIT FOR PREGNANT MOTHERS

SEC. 101. PERMANENT EXPANSION OF CHILD TAX CREDIT.

    (a) In General.--Section 24 of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking subsections (a) through (e) and inserting 
        the following new subsections:
    ``(a) Allowance of Credit.--
            ``(1) In general.--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.
            ``(2) Base credit amount.--For purposes of paragraph (1), 
        the base credit amount shall be an amount equal to the sum of--
                    ``(A) 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
                    ``(B) for each qualifying child of the taxpayer who 
                is not described in subparagraph (A), $3,000.
    ``(b) Applicable Percentage and Limitation Based on Adjusted Gross 
Income.--
            ``(1) Applicable percentage.--For purposes of subsection 
        (a), the applicable percentage shall be--
                    ``(A) in the case of a taxpayer whose modified 
                adjusted gross income is equal to or greater than 
                $20,000, 100 percent, or
                    ``(B) 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--
                            ``(i) the modified adjusted gross income of 
                        the taxpayer, divided by
                            ``(ii) $20,000.
            ``(2) Limitation.--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--
                    ``(A) in the case of a joint return, $400,000, or
                    ``(B) in any other case, $200,000.
            ``(3) Modified adjusted gross income.--For purposes of this 
        subsection, the term `modified adjusted gross income' means 
        adjusted gross income increased by any amount excluded from 
        gross income under section 911, 931, or 933.
            ``(4) Adjustment for inflation.--
                    ``(A) In general.--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--
                            ``(i) $20,000, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `2025' for `2016' in 
                        subparagraph (A)(ii) thereof.
                    ``(B) Rounding.--If any increase under this 
                paragraph is not a multiple of $100, such increase 
                shall be rounded to the next lowest multiple of $100.
    ``(c) Qualifying Child.--For purposes of this section--
            ``(1) In general.--The term `qualifying child' 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.
            ``(2) Exception for certain noncitizens.--The term 
        `qualifying child' 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 `resident of 
        the United States'.
    ``(d) Limitation on Number of Children.--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.
    ``(e) Identification Requirements.--
            ``(1) In general.--No credit shall be allowed under this 
        section to a taxpayer who does not include on the return of tax 
        for the taxable year--
                    ``(A) 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
                    ``(B) with respect to any qualifying child, the 
                name and the social security number of such qualifying 
                child.
            ``(2) Social security number defined.--For purposes of this 
        subsection, the term `social security number' 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--
                    ``(A) 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
                    ``(B) before the due date of filing such return.'',
            (2) by striking subsections (h) through (j) and inserting 
        the following:
    ``(h) Reconciliation of Credit and Advance Credit.--
            ``(1) In general.--The amount of the credit allowed under 
        this section to any taxpayer for any taxable year shall be 
        reduced (but not below zero) by the aggregate amount of 
        payments made under section 7527A to such taxpayer during such 
        taxable year. Any failure to so reduce the credit shall be 
        treated as arising out of a mathematical or clerical error and 
        assessed according to section 6213(b)(1).
            ``(2) Excess advance payments.--If the aggregate amount of 
        payments under section 7527A to the taxpayer during the taxable 
        year exceeds the amount of the credit allowed under this 
        section to such taxpayer for such taxable year (determined 
        without regard to paragraph (1)), the tax imposed by this 
        chapter for such taxable year shall be increased by the amount 
        of such excess. Any failure to so increase the tax shall be 
        treated as arising out of a mathematical or clerical error and 
        assessed according to section 6213(b)(1).'',
            (3) in subsection (k)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Puerto rico.--
                    ``(A) Nonapplication of advance payments.--For 
                nonapplication of advance payment to residents of 
                Puerto Rico, see section 7527A(e)(4)(A).
                    ``(B) Allowance of credit.--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.'', and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), by striking ``and 
                        without regard to the application of this 
                        section to bona fide residents of Puerto Rico 
                        under subsection (i)(1)'', and
                            (ii) in subparagraph (C), by striking 
                        clause (ii) and inserting the following:
                            ``(ii) Application of section in event of 
                        absence of approved plan.--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)(B) shall 
                        apply with respect to bona fide residents of 
                        American Samoa (within the meaning of section 
                        937(a)).'', and
            (4) by redesignating subsection (k) (as amended by 
        paragraph (3)) as subsection (i).
    (b) Treatment as Fully Refundable.--
            (1) Credit moved to subpart relating to refundable 
        credits.--
                    (A) In general.--The Internal Revenue Code of 1986 
                is amended--
                            (i) by redesignating section 24, as amended 
                        by this section, as section 36C, and
                            (ii) 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.
                    (B) Technical amendment.--Subsection (a) of section 
                36C of such Code, as moved and redesignated by 
                subparagraph (A), is amended by striking ``this 
                chapter'' and inserting ``this subtitle''.
                    (C) Clerical amendments.--
                            (i) 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.
                            (ii) 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:

``Sec. 36C. Child tax credit.''.
            (2) Conforming amendments.--
                    (A) Section 26(b)(2)(Z) of such Code is amended by 
                striking ``24(j)(2)'' and inserting ``36C(h)(2)''.
                    (B) Subparagraph (B) of section 45R(f)(3) of such 
                Code is amended to read as follows:
                    ``(B) Special rule.--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.''.
                    (C) Section 48D(d)(4) of such Code is amended by 
                striking ``section 24(k)'' and inserting ``section 
                36C(i)''.
                    (D) Section 152(f)(6)(B)(ii) of such Code is 
                amended by striking ``section 24'' and inserting 
                ``section 36C''.
                    (E) Paragraph (26) of section 501(c) of such Code 
                is amended in the flush matter at the end by striking 
                ``section 24(c))'' and inserting ``section 36C(c))''.
                    (F) Section 3402(f)(1)(C) of such Code is amended 
                by striking ``section 24 (determined after application 
                of subsection (j) thereof)'' and inserting ``section 
                36C (determined after application of subsection (h) 
                thereof)''.
                    (G) Section 6103(l)(13)(A)(v) of such Code is 
                amended by striking ``section 24'' and inserting 
                ``section 36C''.
                    (H) Section 6211(b)(4)(A) of such Code is amended--
                            (i) by striking ``24 by reason of 
                        subsections (d) and (i)(1) thereof,'', and
                            (ii) by inserting ``36C,'' after ``36B,''.
                    (I) Section 6213(g)(2) of such Code is amended--
                            (i) in subparagraph (I), by striking 
                        ``correct TIN required under section 24(e)'' 
                        and inserting ``correct social security number 
                        required under section 36C(e)'',
                            (ii) in subparagraph (L)--
                                    (I) by striking ``24, or 32'' and 
                                inserting ``32, or 36C'', and
                                    (II) by striking ``TIN'' each place 
                                it appears and inserting ``TIN or 
                                social security number'', and
                            (iii) in subparagraph (P)--
                                    (I) by striking ``24(g)(2)'' and 
                                inserting ``36C(g)(2)'', and
                                    (II) by striking ``section 24'' and 
                                inserting ``section 36C''.
                    (J) Section 6402(m) of such Code is amended by 
                striking ``section 24 (by reason of subsection (d) 
                thereof) or 32'' and inserting ``section 32 or 36C''.
                    (K) Section 6417(f) of such Code is amended by 
                striking ``section 24(k)'' and inserting ``section 
                36C(i)''.
                    (L) Section 6695(g)(2) of such Code is amended by 
                striking ``24, 25A(a)(1), or 32'' and inserting 
                ``25A(a)(1), 32, or 36C''.
                    (M) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended--
                            (i) by striking ``24,'', and
                            (ii) by inserting ``36C,'' after ``36B,''.
                    (N) Section 1613(a)(11)(A) of the Social Security 
                Act (42 U.S.C. 1382b(a)(11)(A)) is amended by striking 
                ``section 24 of the Internal Revenue Code of 1986 
                (relating to child tax credit) by reason of subsection 
                (d) thereof'' and inserting ``section 36C of the 
                Internal Revenue Code of 1986 (relating to child tax 
                credit), and any payment made to such individual (or 
                such spouse) under section 7527A of such Code (relating 
                to advance payment of child tax credit)''.
    (c) Coordination With Advance Payments of Credit.--Section 7527A of 
the Internal Revenue Code of 1986 is amended--
            (1) in subsection (a)--
                    (A) by inserting ``who have made an election under 
                subsection (c)(1)'' after ``making periodic payments to 
                taxpayers'', and
                    (B) by striking ``periodic payments'' each place it 
                appears and inserting ``monthly payments'',
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``50 percent of the amount 
                        which would be treated as allowed under subpart 
                        C of part IV of subchapter A of chapter 1 by 
                        reason of section 24(i)(1)'' and inserting 
                        ``the amount allowed under section 36C'',
                            (ii) by striking subparagraph (A), and
                            (iii) by redesignating subparagraphs (B) 
                        through (D) as subparagraphs (A) through (C), 
                        respectively,
                    (B) in paragraph (3)--
                            (i) in subparagraph (A)(ii), by striking 
                        ``subpart C of part IV of subchapter A of 
                        chapter 1 by reason of section 24(i)(1)'' and 
                        inserting ``section 36C'', and
                            (ii) in subparagraph (B), by striking 
                        ``periodic payment'' each place it appears and 
                        inserting ``monthly payment'',
                    (C) by striking paragraph (4), and
                    (D) by redesignating paragraph (5) as paragraph 
                (4),
            (3) in subsection (c), by striking paragraph (1) and 
        inserting the following:
            ``(1) make an election to receive payments under this 
        section, and'',
            (4) in subsection (e)(4)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Nonapplication for residents of puerto 
                rico.--If the taxpayer (in the case of a joint return, 
                either spouse) is a bona fide resident of Puerto Rico 
                (within the meaning of section 937(a)) for the taxable 
                year, the advance payment amount with respect to the 
                calendar year in which such taxable year begins shall 
                be reduced to zero.'',
                    (B) in subparagraph (B), by striking ``section 
                24(k)'' and inserting ``section 36C(i)'', and
                    (C) in subparagraph (C)--
                            (i) in clause (i)--
                                    (I) by striking ``section 
                                24(k)(1)(A)'' and inserting ``section 
                                36C(i)(1)(A)'', and
                                    (II) by striking ``in 2021'' and 
                                inserting ``after 2020'', and
                            (ii) in clause (ii)--
                                    (I) by striking ``section 
                                24(k)(3)'' and inserting ``section 
                                36C(i)(3)'', and
                                    (II) by striking ``in 2021'' and 
                                inserting ``after 2020'',
            (5) in subsection (f), by striking ``with respect to'' and 
        all that follows and inserting ``with respect to any period 
        before July 1, 2021.'', and
            (6) in subsection (g), by striking ``subsections (i)(1) and 
        (j) of section 24'' and inserting ``section 36C''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.

SEC. 102. TAX CREDIT FOR PREGNANT MOTHERS.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36C (as redesignated by section 101) the following new section:

``SEC. 36D. CREDIT FOR PREGNANT MOTHERS.

    ``(a) Allowance of Credit.--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.
    ``(b) Applicable Percentage.--
            ``(1) In general.--For purposes of subsection (a), the 
        applicable percentage shall be--
                    ``(A) in the case of a taxpayer whose modified 
                adjusted gross income is equal to or greater than 
                $10,000, 100 percent, or
                    ``(B) 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--
                            ``(i) the modified adjusted gross income of 
                        the taxpayer, divided by
                            ``(ii) $10,000.
            ``(2) Limitation.--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--
                    ``(A) in the case of a joint return, $400,000, or
                    ``(B) in any other case, $200,000.
            ``(3) Modified adjusted gross income.--For purposes of this 
        subsection, the term `modified adjusted gross income' has the 
        same meaning given such term in section 36C(b)(3).
            ``(4) Adjustment for inflation.--
                    ``(A) In general.--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--
                            ``(i) $10,000, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `2025' for `2016' in 
                        subparagraph (A)(ii) thereof.
                    ``(B) Rounding.--If any increase under this 
                paragraph is not a multiple of $100, such increase 
                shall be rounded to the next lowest multiple of $100.
    ``(c) Qualifying Unborn Child.--
            ``(1) In general.--For purposes of this section, the term 
        `qualifying unborn child' means an unborn child whose 
        gestational age is 20 weeks or greater, as certified by a 
        physician in accordance with paragraph (2).
            ``(2) Certification.--
                    ``(A) In general.--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.
                    ``(B) Form.--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:
                            ``(i) The gestational age and the expected 
                        due date of the unborn child.
                            ``(ii) The name and social security number 
                        of the mother.
                            ``(iii) If applicable, the name and social 
                        security number of the spouse of such mother.
                            ``(iv) The name and contact information of 
                        the physician.
                            ``(v) A written certification from such 
                        physician stating, under penalty of perjury 
                        pursuant to section 1746 of title 28, that--
                                    ``(I) the mother was determined to 
                                have been pregnant with the unborn 
                                child, according to standard medical 
                                practice, by such physician, and
                                    ``(II) such physician has 
                                determined that, in their reasonable 
                                medical judgment, the gestational age 
                                of the unborn child is 20 weeks or 
                                greater.
                            ``(vi) 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--
                                    ``(I) is the biological mother of 
                                such unborn child, or
                                    ``(II) initiated the pregnancy with 
                                the intention of bearing and retaining 
                                custody of and parental rights to such 
                                child (or acted to such effect).
                    ``(C) Prohibition.--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.
    ``(d) Application.--
            ``(1) In general.--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.
            ``(2) More than 1 unborn child during the same taxable 
        year.--In the case of an eligible taxpayer who--
                    ``(A) has more than 1 pregnancy during a taxable 
                year, or
                    ``(B) is determined to be pregnant with more than 1 
                qualifying unborn child,
        the credit under this section shall be allowed with respect to 
        each qualifying unborn child.
            ``(3) Interaction with child tax credit.--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.
    ``(e) Prohibition.--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.
    ``(f) Reconciliation of Credit and Advanced Payments.--
            ``(1) In general.--The amount of the credit allowed under 
        this section to any taxpayer for any taxable year shall be 
        reduced (but not below zero) by the aggregate amount of 
        payments made under section 7527B to such taxpayer during such 
        taxable year. Any failure to so reduce the credit shall be 
        treated as arising out of a mathematical or clerical error and 
        assessed according to section 6213(b)(1).
            ``(2) Excess advance payments.--If the aggregate amount of 
        payments under section 7527B to the taxpayer during the taxable 
        year exceeds the amount of the credit allowed under this 
        section to such taxpayer for such taxable year (determined 
        without regard to paragraph (1)), the tax imposed by this 
        chapter for such taxable year shall be increased by the amount 
        of such excess. Any failure to so increase the tax shall be 
        treated as arising out of a mathematical or clerical error and 
        assessed according to section 6213(b)(1).
    ``(g) Definitions.--In this section--
            ``(1) Eligible taxpayer.--The term `eligible taxpayer' 
        means a taxpayer who--
                    ``(A) with respect to an unborn child, is the 
                mother who--
                            ``(i) carries or carried such child in the 
                        womb, and
                            ``(ii) 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
                    ``(B) in the case of a joint return, is the spouse 
                of such mother,
        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).
            ``(2) Gestational age.--The term `gestational age' means 
        the age of the unborn child, as calculated from the first day 
        of the mother's last menstrual period.
            ``(3) Physician.--The term `physician' means an individual 
        who is--
                    ``(A) licensed to practice--
                            ``(i) medicine and surgery,
                            ``(ii) osteopathic medicine and surgery, or
                            ``(iii) midwifery, or
                    ``(B) otherwise legally authorized to--
                            ``(i) perform births and to diagnose and 
                        attend miscarriages or stillbirths, and
                            ``(ii) perform examinations to determine 
                        the gestational age of an unborn child,
        by the State in which such practice is performed.
            ``(4) Reasonable medical judgment.--The term `reasonable 
        medical judgment' 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.
            ``(5) Social security number.--The term `social security 
        number' has the meaning given such term by section 
        36C(e)(2).''.
    (b) Advance Payments.--Chapter 77 of the Internal Revenue Code of 
1986 is amended by inserting after section 7527A the following new 
section:

``SEC. 7527B. ADVANCE PAYMENT OF CREDIT FOR PREGNANT MOTHERS.

    ``(a) In General.--The Secretary shall establish a program for 
making payments to any qualified taxpayer which--
            ``(1) in the aggregate, equal the advance payment amount 
        determined with respect to such taxpayer, and
            ``(2) are scheduled to provide the amount described in 
        paragraph (1) through monthly payments--
                    ``(A) beginning in the month in which an election 
                is made by the qualified taxpayer under subsection (c), 
                and
                    ``(B) ending on the month in which the expected due 
                date of the unborn child occurs.
    ``(b) Advance Payment Amount.--
            ``(1) In general.--With respect to any qualified taxpayer, 
        the advance payment amount shall be equal to the amount (if 
        any) which is estimated by the Secretary as being equal to the 
        amount of the credit which would otherwise be allowed under 
        section 36D for the taxable year beginning in the calendar year 
        in which such estimate is being made, except that the 
        taxpayer's modified adjusted gross income for such taxable year 
        shall be deemed to be equal to the taxpayer's modified adjusted 
        gross income for the reference taxable year.
            ``(2) Reference taxable year.--For purposes of this 
        subsection, the term `reference taxable year' means, with 
        respect to any estimate made by the Secretary under paragraph 
        (1) with respect to a taxpayer during any calendar year, the 
        taxpayer's taxable year beginning in the preceding calendar 
        year or, in the case of taxpayer who did not file a return of 
        tax for such taxable year, the taxpayer's taxable year 
        beginning in the second preceding calendar year.
    ``(c) Election.--A taxpayer shall make an election to receive 
payments under this section in such form and manner as the Secretary 
may prescribe, with such election to include the form described in 
subsection (d)(3).
    ``(d) Qualified Taxpayer.--For purposes of this section, the term 
`qualified taxpayer' means any taxpayer--
            ``(1) with a qualifying unborn child (as defined in section 
        36D(c)(1)),
            ``(2) who is described in subparagraph (A) or (B) of 
        section 36D(g)(1) with respect to such child,
            ``(3) who has submitted the form described in section 
        36D(c)(2)(B) to the Secretary with respect to such child, and
            ``(4) who has made an election under subsection (c).
    ``(e) Payments After Birth.--Notwithstanding subsection (a)(2)(B), 
payments made to any qualified taxpayer under this section shall be 
made after the date of the birth of the child if needed to ensure that 
the aggregate amount of such payments satisfy the requirement under 
subsection (a)(1).
    ``(f) Regulations.--The Secretary shall issue such regulations or 
other guidance as the Secretary determines necessary or appropriate to 
carry out this subsection and, to the extent practicable, to align the 
payment program established under this section with the payment program 
established under section 7527A.''.
    (c) Clerical Amendments.--
            (1) Credit for pregnant mothers.--The table of sections for 
        subpart C of part IV of subchapter A of chapter 1 of the 
        Internal Revenue Code of 1986 is amended by inserting after the 
        item relating to section 36C the following new item:

``Sec. 36D. Credit for pregnant mothers.''.
            (2) Advance payment of credit for pregnant mothers.--The 
        table of sections for chapter 77 of such Code is amended by 
        inserting after the item relating to section 7527A the 
        following new item:

``Sec. 7527B. Advance payment of credit for pregnant mothers.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.

    TITLE II--OTHER AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

SEC. 201. SIMPLIFICATION OF EARNED INCOME CREDIT FOR TAXPAYERS WITH 
              CHILDREN.

    (a) Additional Limitation.--Paragraph (2) of section 32(a) of the 
Internal Revenue Code of 1986 is amended to read as follows:
            ``(2) Limitation.--The amount of the credit allowable to a 
        taxpayer under paragraph (1) for any taxable year shall not 
        exceed the lesser of--
                    ``(A) the excess (if any) of--
                            ``(i) the credit percentage of the earned 
                        income amount, over
                            ``(ii) 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
                    ``(B) an amount equal to--
                            ``(i) in the case of any taxpayer with no 
                        qualifying children--
                                    ``(I) who is not filing a joint 
                                return, $700, or
                                    ``(II) who is filing a joint 
                                return, $1,400, or
                            ``(ii) in the case of any taxpayer with 1 
                        or more qualifying children--
                                    ``(I) who is not filing a joint 
                                return, $4,300, or
                                    ``(II) who is filing a joint 
                                return, $5,000.''.
    (b) Credit Percentage and Phaseout Percentage.--The table contained 
in paragraph (1) of section 32(b) of the Internal Revenue Code of 1986 
is amended--
            (1) by striking ``1 qualifying child'' in the first row and 
        inserting ``1 or more qualifying children'',
            (2) by striking ``15.98'' in the first row and inserting 
        ``25'',
            (3) by striking the second and third rows, and
            (4) by striking ``7.65'' in the third column of the last 
        row and inserting ``10''.
    (c) Earned Income and Phaseout Amounts.--The table contained in 
subparagraph (A) of section 32(b)(2) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``1 qualifying child'' in the first row and 
        inserting ``1 or more qualifying children'',
            (2) by striking ``$6,330'' in the first row and inserting 
        ``$12,647'',
            (3) by striking ``$11,610'' in the first row and inserting 
        ``$33,000'',
            (4) by striking the second row,
            (5) by striking ``$4,220'' in the last row and inserting 
        ``$9,150'', and
            (6) by striking ``$5,280'' in the last row and inserting 
        ``$10,000''.
    (d) Joint Returns.--Subparagraph (B) of section 32(b)(2) of the 
Internal Revenue Code of 1986 is amended by striking ``$5,000'' and 
inserting ``$10,000, and the earned income amount determined under 
subparagraph (A) shall be increased--
                            ``(i) by $2,059, in the case of a taxpayer 
                        with 1 or more qualifying children, and
                            ``(ii) by $9,151, in the case of a taxpayer 
                        with no qualifying children.''.
    (e) Inflation Adjustment.--Paragraph (1) of section 32(j) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``2015'' and inserting ``2026'',
            (2) by striking clauses (i) and (ii) of subparagraph (B) 
        thereof and redesignating clause (iii) of such subparagraph as 
        clause (ii), and
            (3) by inserting before clause (ii) of subparagraph (B) 
        thereof, as so redesignated, the following new clause:
                            ``(i) in the case of amounts in subsection 
                        (b)(2), `calendar year 2025' for `calendar year 
                        2016', and''.
    (f) Effective Date.--
            (1) In general.--Subject to paragraph (2), the amendments 
        made by this section shall apply to taxable years beginning 
        after December 31, 2025.
            (2) Nonapplication to exempted children.--
                    (A) In general.--Subject to subparagraph (B), in 
                the case of any eligible individual (as defined in 
                section 32(c)(1) of the Internal Revenue Code of 1986) 
                who has any qualifying children for the taxable year 
                who are exempted children, section 32 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.
                    (B) Separate application.--In the case of any 
                eligible individual (as so defined) who has--
                            (i) any qualifying children for the taxable 
                        year who are not exempted children, and
                            (ii) any qualifying children for such 
                        taxable year who are exempted children,
                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).
                    (C) Exempted child.--For purposes of this 
                paragraph, the term ``exempted child'' means an 
                individual who is described in subparagraph (A)(ii) or 
                (B) of section 152(c)(3).

SEC. 202. ELIMINATION OF ADDITIONAL EXEMPTION FOR DEPENDENTS.

    (a) In General.--Paragraph (5) of section 151(d) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(5) Elimination of additional exemption for dependents 
        for taxable years after 2025.--In the case of a taxable year 
        beginning after December 31, 2025--
                    ``(A) In general.--For purposes of subsection (c), 
                the term `exemption amount' means zero.
                    ``(B) References.--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.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2025.

SEC. 203. ELIMINATION OF HEAD OF HOUSEHOLD FILING STATUS.

    (a) In General.--Section 1 of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking subsection (b),
            (2) in subsection (c)--
                    (A) in the heading, by striking ``and Heads of 
                Households'', and
                    (B) by striking ``or the head of a household as 
                defined in section 2(b)'',
            (3) in subsection (f), by striking ``(b),'' each place it 
        appears,
            (4) in subsection (i)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)(i), by striking 
                        ``(b),'',
                            (ii) in subparagraph (B)--
                                    (I) in clause (i), by adding 
                                ``and'' at the end,
                                    (II) by striking clause (ii), and
                                    (III) by redesignating clause (iii) 
                                as clause (ii), and
                            (iii) in subparagraph (C), by striking 
                        ``subparagraph (B)(iii)'' and inserting 
                        ``subparagraph (B)(ii)'',
                    (B) in paragraph (2), by striking ``(b),'', and
                    (C) in paragraph (3)--
                            (i) in subparagraph (A), by striking 
                        ``(b),'',
                            (ii) in subparagraph (B)--
                                    (I) by striking clause (ii), and
                                    (II) by redesignating clauses (iii) 
                                and (iv) as clauses (ii) and (iii), 
                                respectively, and
                            (iii) in subparagraph (C), by striking 
                        ``clauses (i), (ii), and (iii)'' and inserting 
                        ``clauses (i) and (ii)'', and
            (5) in subsection (j)--
                    (A) in paragraph (2)--
                            (i) by striking subparagraph (B), and
                            (ii) in subparagraph (C), by striking ``and 
                        Heads of Households'' in the heading,
                    (B) in paragraph (3)(B)(ii), by striking ``or head 
                of household'', and
                    (C) in paragraph (5)(B)--
                            (i) in clause (i)--
                                    (I) by striking subclause (II), and
                                    (II) by redesignating subclauses 
                                (III) and (IV) as subclauses (II) and 
                                (III), respectively, and
                            (ii) in clause (ii)--
                                    (I) by striking subclause (II), and
                                    (II) by redesignating subclauses 
                                (III) and (IV) as subclauses (II) and 
                                (III), respectively.
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 25B(b) of the Internal Revenue 
        Code of 1986 is amended to read as follows:
            ``(2) Other returns.--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.''.
            (2) Section 25E(b)(2) of such Code is amended--
                    (A) in subparagraph (A), by adding ``and'' at the 
                end, and
                    (B) by striking subparagraphs (B) and (C) and 
                inserting the following:
                    ``(B) in the case of a taxpayer not described in 
                subparagraph (A), $75,000.''.
            (3) Section 30D(f)(10)(B) of such Code is amended--
                    (A) in clause (i), by adding ``and'' at the end, 
                and
                    (B) by striking clauses (ii) and (iii) and 
                inserting the following:
                            ``(ii) in the case of a taxpayer not 
                        described in clause (i), $150,000.''.
            (4) Section 36B(b)(3)(B)(ii)(I)(aa) of such Code is amended 
        by striking ``and heads of households''.
            (5) Section 63(c) of such Code is amended--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A)(ii), by adding 
                        ``or'' at the end,
                            (ii) by striking subparagraph (B), and
                            (iii) by redesignating subparagraph (C) as 
                        subparagraph (B),
                    (B) in paragraph (4), by striking ``, (2)(C),'' 
                each place it appears, and
                    (C) in paragraph (7)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) Increase in standard deduction.--Paragraph 
                (2)(B) shall be applied by substituting `$12,000' for 
                `$3,000'.'', and
                            (ii) in subparagraph (B)--
                                    (I) in clause (i), by striking 
                                ``paragraphs (2)(B) and (2)(C)'' and 
                                inserting ``paragraph (2)(B)'', and
                                    (II) in clause (ii), by striking 
                                ``$18,000 and $12,000 amounts'' and 
                                inserting ``$12,000 amount''.
            (6) Section 68(b) of such Code is amended--
                    (A) in paragraph (1)--
                            (i) by striking subparagraph (B),
                            (ii) in subparagraph (C), by striking ``or 
                        head of household'', and
                            (iii) by redesignating subparagraphs (C) 
                        and (D) as subparagraphs (B) and (C), 
                        respectively, and
                    (B) in paragraph (2), by striking ``subparagraphs 
                (A), (B), and (C)'' and inserting ``subparagraphs (A) 
                and (B)''.
            (7) Section 904(b)(3)(E)(i)(I) of such Code is amended by 
        striking ``(b),''.
            (8) Section 6012(a)(1) of such Code is amended--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking ``is not a 
                        head of a household (as defined in section 
                        2(b)),'',
                            (ii) by striking clause (ii),
                            (iii) by redesignating clauses (iii) and 
                        (iv) as clauses (ii) and (iii), respectively, 
                        and
                            (iv) in the flush text at the end, by 
                        striking ``Clause (iv)'' and inserting ``Clause 
                        (iii)'', and
                    (B) in subparagraph (B)--
                            (i) by striking ``clause (i), (ii), or 
                        (iii)'' and inserting ``clause (i) or (ii)'', 
                        and
                            (ii) by striking ``clause (iv)'' and 
                        inserting ``clause (iii)''.
            (9) Subparagraph (B) of section 6433(b)(3) of such Code is 
        amended to read as follows:
                    ``(B) Other returns.--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 \1/2\ of the amounts applicable under subparagraph 
                (A) (as so adjusted).''.
            (10) Subsection (g) of section 6695 of such Code is amended 
        to read as follows:
    ``(g) Failure To Be Diligent in Determining Eligibility for Certain 
Tax Benefits.--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 24, 25A(a)(1), or 32, shall pay a penalty of $500 for each such 
failure.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.

SEC. 204. EXCLUSION OF CHILDREN FROM CREDIT FOR EXPENSES FOR HOUSEHOLD 
              AND DEPENDENT CARE SERVICES NECESSARY FOR GAINFUL 
              EMPLOYMENT.

    (a) In General.--Section 21 of the Internal Revenue Code of 1986 is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking subparagraph (A),
                            (ii) in subparagraph (B), by inserting 
                        ``who has attained age 18 and'' before ``who is 
                        physically or mentally incapable'', and
                            (iii) by redesignating subparagraphs (B) 
                        and (C) as subparagraphs (A) and (B), 
                        respectively, and
                    (B) in paragraph (2), by striking subparagraph (B) 
                and inserting the following:
                    ``(B) Exception.--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.'',
            (2) in subsection (d)(2), by striking ``subsection 
        (b)(1)(C)'' and inserting ``subsection (b)(1)(B)'', and
            (3) in subsection (e)(5)--
                    (A) in subparagraph (B), by striking ``is under the 
                age of 13 or'' and inserting ``has attained age 18 
                and'', and
                    (B) in the flush text at the end, by striking 
                ``subparagraph (A) or (B) of subsection (b)(1) 
                (whichever is appropriate)'' and inserting ``subsection 
                (b)(1)(A)''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.

SEC. 205. LIMITATION ON DEDUCTION FOR STATE AND LOCAL TAXES OF 
              INDIVIDUALS.

    (a) In General.--Paragraph (6) of section 164(b) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(6) Limitation on individual deductions for taxable years 
        after 2025.--
                    ``(A) In general.--In the case of an individual and 
                a taxable year beginning after December 31, 2025--
                            ``(i) foreign real property taxes shall not 
                        be taken into account under subsection (a)(1), 
                        and
                            ``(ii) the aggregate amount of taxes taken 
                        into account under paragraphs (1), (2), and (3) 
                        of subsection (a) and paragraph (5) of this 
                        subsection for any taxable year shall not 
                        exceed $30,000 ($15,000 in the case of a 
                        married individual filing a separate return).
                    ``(B) Exceptions.--Subparagraph (A) shall not apply 
                to--
                            ``(i) any foreign taxes described in 
                        subsection (a)(3), or
                            ``(ii) any taxes described in paragraph (1) 
                        and (2) of subsection (a) which are paid or 
                        accrued in carrying on a trade or business or 
                        an activity described in section 212.
                    ``(C) Special rule.--For purposes of subparagraph 
                (A)(ii), an amount paid in a taxable year beginning 
                before January 1, 2026, with respect to a State or 
                local income tax imposed for a taxable year beginning 
                after December 31, 2025, shall be treated as paid on 
                the last day of the taxable year for which such tax is 
                so imposed.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2025.
                                 <all>
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