income’ means the adjusted gross income 
of the taxpayer for the taxable year in-
creased by any amount excluded from 
gross income under section 911, 931, or 
933. 
‘‘(ii) POVERTY LINE.— 
‘‘(I) IN
GENERAL.—The term 
‘poverty line’ has the meaning given 
such term in section 673(2) of the 
Community Services Block Grant Act 
(42 U.S.C. 9902(2)), including any 
revision required by such section. 
‘‘(II) FAMILY
SIZE.—For pur-
poses of determining the poverty line 
applicable to the taxpayer, the family 
size with respect to any taxpayer shall 
be equal to the number of individuals 
for whom the taxpayer is allowed a 
deduction under section 151 (relating 
to allowance of deduction for personal 
exemptions) for the taxable year.’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
32(c)(1)(A)(ii) of such Code is amended by inserting 
‘‘(other than a qualifying student)’’ after ‘‘any other 
individual’’. 
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
(c) MINIMUM CREDIT FOR STUDENTS AND FOR INDI-
VIDUALS WITH CERTAIN QUALIFYING DEPENDENTS.— 
Section 32(a) of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(3) MINIMUM
CREDIT
FOR
STUDENTS
AND 
FOR INDIVIDUALS WITH CERTAIN QUALIFYING DE-
PENDENTS.— 
‘‘(A) IN GENERAL.—In the case of a quali-
fying student, or an eligible individual who has 
a specified dependent for the taxable year, the 
amount determined under paragraph (1) (be-
fore the application of paragraph (2)) and the 
amount determined under paragraph (2)(A) 
shall not be less than $1,200. 
‘‘(B) SPECIFIED
DEPENDENT.—For pur-
poses of this paragraph, the term ‘specified de-
pendent’ means any qualifying dependent (other 
than a qualifying child who has attained the 
age of 7 before the close of the taxable year).’’. 
(d) MONTHLY PAYMENT.—Section 32 of such Code, 
as amended by this Act, is further amended by adding 
at the end the following new subsection: 
‘‘(n) MONTHLY PAYMENT.— 
‘‘(1) IN GENERAL.—In the case of an individual 
who is entitled to a refund relating to an overpay-
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
ment of tax imposed by this subtitle that exceeds 
$240 (but only to the extent such refund does not 
exceed the credit allowed under this section) such in-
dividual may elect to have the Secretary, in lieu of 
such refund, make a payment equal to— 
‘‘(A) 2⁄13 of such refund (with interest) 
during the earlier of the first practicable month 
or the second month that begins after the date 
the return was filed, and 
‘‘(B) 1⁄13 of such refund (with interest) 
during each of the 11 months subsequent to the 
month determined under subparagraph (A). 
‘‘(2) METHOD OF PAYMENT.—A payment made 
under this subsection shall be made by direct deposit 
or by general-use prepaid card, or by such other 
method (other than by check) as the Secretary may 
prescribe and the taxpayer may elect. 
‘‘(3) ONE-TIME INCREASE.—The first time an 
individual receives a payment under this subsection, 
paragraph (1)(A) shall be applied by substituting 
‘4⁄13’ for ‘2⁄13’.’’. 
(e) SPECIAL RULE
FOR NEW LOW-INCOME PAR-
ENTS.—Section 32 of such Code, as amended by this Act, 
is further amended by adding at the end the following new 
subsection: 
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(o) SPECIAL RULE FOR NEW LOW-INCOME PAR-
ENTS.— 
‘‘(1) IN GENERAL.—In the case of an individual 
who— 
‘‘(A) is eligible for payments under sub-
section (o)(1) with respect to a refund for a 
taxable year, and 
‘‘(B) has a qualifying child who is born or 
adopted during the following taxable year and 
not later than the penultimate month for which 
the taxpayer is eligible for such payments, 
the amount of any such payments made after such 
birth or adoption shall be adjusted to the amount 
such payments would be if such qualifying child were 
a qualifying child of the taxpayer under this section 
for the taxable year to which such payments relate. 
‘‘(2) QUALIFYING
CHILD
DETERMINATION.— 
For purposes of determining if a child is a quali-
fying child for purposes of this subsection, sub-
section (m) shall be applied by inserting ‘or, in the 
case of an adoption, such other identifying informa-
tion as specified by the Secretary’ before the period 
at the end.’’. 
(f) AGE OF ELIGIBLE INDIVIDUALS WITHOUT DE-
PENDENTS.—Section 32(c)(1)(A)(ii)(II) of such Code is 
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
amended by striking ‘‘age 25 but not attained age 65’’ 
and inserting ‘‘age 18’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 4. RETURN PREPARATION PROGRAMS FOR LOW-IN-
COME TAXPAYERS. 
(a) IN GENERAL.—Chapter 77 of such Code is 
amended by inserting after section 7526A the following 
new section: 
‘‘SEC. 7526B. RETURN PREPARATION PROGRAMS FOR LOW- 
INCOME TAXPAYERS. 
‘‘(a) ESTABLISHMENT OF VOLUNTEER INCOME TAX 
ASSISTANCE MATCHING GRANT PROGRAM.—The Sec-
retary, through the Internal Revenue Service, shall estab-
lish a Community Volunteer Income Tax Assistance 
Matching Grant Program under which the Secretary may, 
subject to the availability of appropriated funds, make 
grants to provide matching funds for the development, ex-
pansion, or continuation of qualified return preparation 
programs assisting low-income taxpayers and members of 
underserved populations. 
‘‘(b) USE OF FUNDS.— 
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(1) IN GENERAL.—Qualified return prepara-
tion programs may use grants received under this 
section for— 
‘‘(A) ordinary and necessary costs associ-
ated with program operation in accordance with 
cost principles under the applicable Office of 
Management and Budget circular, including— 
‘‘(i) wages or salaries of persons co-
ordinating the activities of the program, 
‘‘(ii) developing training materials, 
conducting training, and performing qual-
ity reviews of the returns prepared under 
the program, 
‘‘(iii) equipment purchases, and 
‘‘(iv) vehicle-related expenses associ-
ated with remote or rural tax preparation 
services, 
‘‘(B) outreach and educational activities 
described in subsection (c)(2)(B), and 
‘‘(C) services related to financial education 
and capability, asset development, and the es-
tablishment of savings accounts in connection 
with tax return preparation. 
‘‘(2) USE
OF
GRANTS
FOR
OVERHEAD
EX-
PENSES PROHIBITED.—No grant received under this 
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
section may be used for overhead expenses that are 
not directly related to a qualified return preparation 
program. 
‘‘(c) APPLICATION.— 
‘‘(1) IN GENERAL.—Each applicant for a grant 
under this section shall submit an application to the 
Secretary at such time, in such manner, and con-
taining such information as the Secretary may rea-
sonably require. 
‘‘(2) PRIORITY.—In awarding grants under this 
section, the Secretary shall give priority to applica-
tions which demonstrate— 
‘‘(A) assistance to low-income taxpayers, 
with emphasis on outreach to, and services for, 
such taxpayers, 
‘‘(B) taxpayer outreach and educational 
activities relating to eligibility and availability 
of income supports available through the Inter-
nal Revenue Code of 1986, including the earned 
income tax credit, and 
‘‘(C) specific outreach and focus on one or 
more underserved populations. 
‘‘(3) AMOUNTS TAKEN INTO ACCOUNT.—In de-
termining matching grants under this section, the 
Secretary shall only take into account amounts pro-
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
vided by the qualified return preparation program 
for expenses described in subsection (b). 
‘‘(d) ACCURACY REVIEWS.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish procedures for, and shall conduct, periodic site 
visits of qualified return preparation programs oper-
ating under a grant under this section— 
‘‘(A) to ensure such programs are carrying 
out the purposes of this section, and 
‘‘(B) to determine the return preparation 
accuracy rate of the program. 
‘‘(2) ADDITIONAL REQUIREMENTS FOR GRANT 
RECIPIENTS NOT MEETING MINIMUM STANDARDS.— 
In the case of any qualified return preparation pro-
gram which— 
‘‘(A) is awarded a grant under this section, 
and 
‘‘(B) is subsequently determined— 
‘‘(i) to have a less than 90 percent av-
erage accuracy rate for preparation of tax 
returns, or 
‘‘(ii) not to be otherwise carrying out 
the purposes of this section, 
such program shall not be eligible for any addi-
tional grants under this section unless such pro-
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
gram provides sufficient documentation of cor-
rective measures established to address any 
such deficiencies determined. 
‘‘(e) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED
RETURN
PREPARATION
PRO-
GRAM.—The term ‘qualified return preparation pro-
gram’ means any program— 
‘‘(A) which provides assistance to individ-
uals, not less than 90 percent of whom are low- 
income taxpayers, in preparing and filing Fed-
eral income tax returns, 
‘‘(B) which is administered by a qualified 
entity, 
‘‘(C) in which all volunteers who assist in 
the preparation of Federal income tax returns 
meet the training requirements prescribed by 
the Secretary, and 
‘‘(D) which uses a quality review process 
which reviews 100 percent of all returns. 
‘‘(2) QUALIFIED ENTITY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
entity’ means any entity which— 
‘‘(i) is an eligible organization, 
‘‘(ii) is in compliance with Federal tax 
filing and payment requirements, 
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(iii) is not debarred or suspended 
from Federal contracts, grants, or coopera-
tive agreements, and 
‘‘(iv) agrees to provide documentation 
to substantiate any matching funds pro-
vided pursuant to the grant program under 
this section. 
‘‘(B) ELIGIBLE ORGANIZATION.—The term 
‘eligible organization’ means— 
‘‘(i) an institution of higher education 
which is described in section 102 (other 
than subsection (a)(1)(C) thereof) of the 
Higher Education Act of 1965 (20 U.S.C. 
1002), as in effect on the date of the en-
actment of this section, and which has not 
been disqualified from participating in a 
program under title IV of such Act, 
‘‘(ii) an organization described in sec-
tion 501(c) and exempt from tax under 
section 501(a), 
‘‘(iii) a local government agency, in-
cluding— 
‘‘(I) a county or municipal gov-
ernment agency, and 
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(II) an Indian tribe, as defined 
in section 4(13) of the Native Amer-
ican Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 
4103(13)), including any tribally des-
ignated housing entity (as defined in 
section 4(22) of such Act (25 U.S.C. 
4103(22))), tribal subsidiary, subdivi-
sion, or other wholly owned tribal en-
tity, 
‘‘(iv) a local, State, regional, or na-
tional coalition (with one lead organization 
which meets the eligibility requirements of 
clause (i), (ii), or (iii) acting as the appli-
cant organization), or 
‘‘(v) in the case of a targeted popu-
lation or community with respect to which 
no organizations described in the preceding 
clauses are available— 
‘‘(I) a State government agency, 
or 
‘‘(II) an office providing Cooper-
ative Extension services (as estab-
lished at the land-grant colleges and 
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
universities under the Smith-Lever 
Act of May 8, 1914). 
‘‘(3) LOW-INCOME TAXPAYERS.—The term ‘low- 
income taxpayer’ means a taxpayer whose income 
for the taxable year does not exceed an amount 
equal to the completed phaseout amount under sec-
tion 32(b) for a married couple filing a joint return 
with 3 or more qualifying children, as determined in 
a revenue procedure or other published guidance. 
‘‘(4) UNDERSERVED
POPULATION.—The term 
‘underserved population’ includes populations of per-
sons with disabilities, persons with limited English 
proficiency, Native Americans, individuals living in 
rural areas, members of the Armed Forces and their 
spouses, and the elderly. 
‘‘(f) SPECIAL RULES AND LIMITATIONS.— 
‘‘(1) DURATION OF GRANTS.—Upon application 
of a qualified return preparation program, the Sec-
retary is authorized to award a multi-year grant not 
to exceed 3 years. 
‘‘(2) AGGREGATE
LIMITATION.—Unless other-
wise provided by specific appropriation, the Sec-
retary shall not allocate more than $30,000,000 per 
fiscal year (exclusive of costs of administering the 
program) to grants under this section. 
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(g) PROMOTION AND REFERRAL.— 
‘‘(1) PROMOTION.—The Secretary shall pro-
mote tax preparation through qualified return prepa-
ration programs through the use of mass commu-
nications, referrals, and other means. 
‘‘(2) INTERNAL
REVENUE
SERVICE
REFER-
RALS.—The Secretary may refer taxpayers to quali-
fied return preparation programs receiving grants 
under this section. 
‘‘(3) VITA GRANTEE REFERRAL.—Qualified re-
turn preparation programs receiving a grant under 
this section are encouraged to refer, as appropriate, 
to local or regional Low-Income Taxpayer Clinics in-
dividuals who are eligible for such clinics.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 is amended by inserting after the item re-
lating to section 7526A the following new item: 
‘‘7526B. Return preparation programs for low-income taxpayers.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to taxable years begin-
ning after the date of enactment of this Act. 
Æ 
VerDate Sep 11 2014 
17:16 Mar 04, 2025
Jkt 059200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6301
E:\BILLS\H905.IH
H905
ssavage on LAPJG3WLY3PROD with BILLS