I 
119TH CONGRESS 
1ST SESSION H. R. 2338 
To amend the Internal Revenue Code of 1986 to expand and improve the 
earned income tax credit. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 25, 2025 
Ms. MOORE of Wisconsin (for herself, Ms. CHU, Mr. DAVIS of Illinois, Mr. 
GOMEZ, Ms. PINGREE, Ms. NORTON, Ms. TLAIB, Ms. SCANLON, Mr. 
KHANNA, and Ms. JAYAPAL) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to expand 
and improve the earned income tax credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Worker Relief and 
Credit Reform Act of 2025’’ or as the ‘‘WRCR Act of 
2025’’. 
SEC. 2. EXPANSION AND IMPROVEMENT OF EARNED IN-
COME TAX CREDIT. 
(a) APPLICATION TO STUDENTS.— 
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(1) IN GENERAL.—Section 32(c)(1)(A)(i) of the 
Internal Revenue Code of 1986 is amended by in-
serting ‘‘who is a qualifying student or’’ after ‘‘any 
individual’’. 
(2) QUALIFYING
STUDENT.—Section 32(c) of 
such Code is amended by redesignating paragraph 
(4) as paragraph (5) and inserting after paragraph 
(3) the following new paragraph: 
‘‘(4) QUALIFYING STUDENT.— 
‘‘(A) IN GENERAL.—The term ‘qualifying 
student’ means, with respect to any taxable 
year, any individual who— 
‘‘(i) is an eligible student (as defined 
in section 25A(b)(3)) with respect to at 
least one academic period beginning during 
such taxable year, 
‘‘(ii) either— 
‘‘(I) qualifies for a Federal Pell 
Grant with respect to such academic 
period, or 
‘‘(II) meets the requirements of 
subparagraph (B) or (C) for the tax-
able year, and 
‘‘(iii) is not a dependent for whom a 
deduction is allowable under section 151 to 
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another taxpayer for any taxable year be-
ginning in the same calendar year as such 
taxable year. 
‘‘(B) INDEPENDENT
STUDENTS.—In the 
case of any independent student, the require-
ments of this subparagraph are met for such 
taxable year if the household income of the tax-
payer is less than 300 percent of the poverty 
line for the size of the family involved for the 
taxable year. 
‘‘(C) OTHER STUDENTS.— 
‘‘(i) IN GENERAL.—In the case of any 
individual who is not an independent stu-
dent, the requirements of this subpara-
graph are met for such taxable year if the 
aggregate household incomes of all the in-
dividual’s specified supporters (and the 
taxpayer if not otherwise taken into ac-
count) for the taxable years of such sup-
porters which end in or with the calendar 
year in which such individual’s taxable 
year begins is less than 300 percent of the 
poverty line for the size of the family in-
volved (determined on a single aggregate 
basis) for the taxable year. 
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‘‘(E) OTHER DEFINITIONS.— 
‘‘(i) HOUSEHOLD INCOME.—The term 
‘household income’ has the meaning given 
such term in section 36B(d)(2). 
‘‘(ii) POVERTY LINE.—The term ‘pov-
erty line’ has the meaning given such term 
in section 36B(d)(3)(A). 
‘‘(iii) FAMILY SIZE.—The family size 
involved with respect to any taxpayer shall 
be determined under rules similar to the 
rules of section 36B(d)(1).’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
32(c)(1)(A)(ii) of such Code is amended by striking 
‘‘any other individual who does not have a qualifying 
child’’ and inserting ‘‘any individual not described in 
clause (i)’’. 
(b) MODIFICATION OF AGE REQUIREMENTS.—Sec-
tion 32(c)(1)(A)(ii)(II) of such Code is amended by strik-
ing ‘‘has attained age 25 but not attained age 65’’ and 
inserting ‘‘has attained age 18’’. 
(c) CARE-GIVING AND LEARNING TAKEN INTO AC-
COUNT AS COMPENSATED WORK.—Section 32(a) of such 
Code is amended by adding at the end the following new 
paragraph: 
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‘‘(3) SPECIAL
RULE
FOR
QUALIFYING
STU-
DENTS AND CERTAIN INDIVIDUALS WITH ONE OR 
MORE QUALIFYING DEPENDENTS.—For purposes of 
paragraph (1), any individual— 
‘‘(A) who is a qualifying student, or 
‘‘(B) who has a qualifying dependent, 
shall be treated as having earned income for the tax-
able year which is equal to the earned income 
amount with respect to such individual for such tax-
able year.’’. 
(d) TREATMENT
OF CERTAIN QUALIFYING REL-
ATIVES.— 
(1) IN
GENERAL.—Section 32(c)(3) of such 
Code is amended by striking all that precedes sub-
paragraph (B) and inserting the following: 
‘‘(3) QUALIFYING DEPENDENT.— 
‘‘(A) IN GENERAL.—The term ‘qualifying 
dependent’ means— 
‘‘(i) a qualifying child of the taxpayer, 
as defined in section 152(c), determined— 
‘‘(I) by substituting ‘12’ for ‘19’ 
in paragraph (3)(A)(i) thereof, and 
‘‘(II) without regard to para-
graphs (1)(D) and (3)(A)(ii) thereof 
and section 152(e), 
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‘‘(ii) any individual who is physically 
or mentally incapable of caring for himself 
or herself (within the meaning of section 
21(b)(1)) and who— 
‘‘(I) is the taxpayer’s spouse, or 
‘‘(II) is a qualifying relative of 
the taxpayer, as defined in section 
152(d), determined without regard to 
paragraph (1)(B) thereof and by 
treating an individual as a qualifying 
child of the taxpayer for purposes of 
paragraph (1)(D) thereof only if such 
individual is a qualifying child of the 
taxpayer as determined under clause 
(i) of this subparagraph, or 
‘‘(iii) any qualifying relative of the 
taxpayer (as defined in section 152(d), de-
termined without regard to paragraph 
(1)(B) thereof) who has attained age 65 as 
of the close of the calendar year in which 
the taxable year of the taxpayer begins. 
For purposes of determining if any individual is 
a qualifying relative of the taxpayer under 
clause (ii)(II) or (iii), section 152(d)(1)(C) shall 
be applied by not taking into account any bene-
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fits received by such individual pursuant to any 
Federal program (or any State or local program 
financed in whole or in part with Federal 
funds) related to retirement (including social 
security benefits), disability, health care, cash 
aid, child care, food assistance, housing and de-
velopment, social services, employment and 
training, or energy assistance.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 32(c)(1)(A)(i) of such Code is 
amended by striking ‘‘qualifying child’’ and in-
serting ‘‘qualifying dependent’’. 
(B) Section 32(c)(1)(B) of such Code is 
amended— 
(i) by striking ‘‘qualifying child’’ and 
inserting ‘‘qualifying dependent’’, and 
(ii) by striking ‘‘CHILD’’ in the head-
ing and inserting ‘‘DEPENDENT’’. 
(C) Section 32(c)(3)(D)(i) of such Code is 
amended by striking ‘‘qualifying child’’ both 
places it appears and inserting ‘‘qualifying de-
pendent’’. 
(e) 
MODIFICATION
OF
PERCENTAGES
AND 
AMOUNTS.— 
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(1) 100 
PERCENT
CREDIT
PERCENTAGE.— 
Paragraph (1) and paragraph (2)(A) of section 
32(a) of such Code are each amended by striking 
‘‘the credit percentage of’’. 
(2) 20 PERCENT
PHASEOUT
PERCENTAGE.— 
Section 32(a)(2)(B) of such Code is amended by 
striking ‘‘the phaseout percentage’’ and inserting 
‘‘20 percent’’. 
(3) MODIFICATION
OF
EARNED
INCOME
AND 
PHASEOUT AMOUNTS.—Section 32(b) of such Code 
is amended to read as follows: 
‘‘(b) 
EARNED
INCOME
AMOUNT; 
PHASEOUT 
AMOUNT.—For purposes of this section— 
‘‘(1) EARNED
INCOME
AMOUNT.—The term 
‘earned income amount’ means $4,000 (twice such 
amount in the case of a joint return). 
‘‘(2) PHASEOUT AMOUNT.—The term ‘phaseout 
amount’ means $30,000 ($50,000 in the case of a 
joint return). 
‘‘(3) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning after 2025, the $4,000 
amount in paragraph (1) and each dollar amount in 
paragraph (2) shall be increased by an amount equal 
to— 
‘‘(A) such dollar amount, multiplied by 
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‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘2024’ for ‘2016’ in sub-
paragraph (A)(ii) thereof. 
If any increase under the preceding sentence is not 
a multiple of $50, such increase shall be rounded to 
the next lowest multiple of $50.’’. 
(4) CONFORMING AMENDMENTS.— 
(A) Section 32(i) of such Code is amended 
by adding at the end the following new para-
graph: 
‘‘(3) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning after 2021, the $10,000 
amount in subsection (i)(1) shall be increased 
by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘2020’ for 
‘2016’ in subparagraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—If any increase under 
subparagraph (A) is not a multiple of $50, such 
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increase shall be rounded to the next lowest 
multiple of $50.’’. 
(B) Section 32 of such Code is amended by 
striking subsection (j). 
(f) INCREASED CREDIT FOR CERTAIN UNMARRIED 
INDIVIDUALS WITH 2 OR MORE QUALIFYING CHIL-
DREN.— 
(1) IN GENERAL.—Section 32 of such Code is 
amended by inserting after subsection (f) the fol-
lowing new subsection: 
‘‘(g) INCREASED CREDIT FOR CERTAIN UNMARRIED 
INDIVIDUALS WITH 2 OR MORE QUALIFYING CHIL-
DREN.— 
‘‘(1) IN GENERAL.—In the case of a qualified 
individual, the amount of the credit otherwise deter-
mined under subsection (a) shall be increased by the 
amount of the credit determined under this section 
as such section was in effect for taxable years begin-
ning in 2018 but with the modifications described in 
paragraph (2). 
‘‘(2) MODIFICATIONS.—Solely for purposes of 
determining the increase under paragraph (1)— 
‘‘(A) CREDIT
PERCENTAGE.—The credit 
percentage shall be equal to— 
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(1) IN GENERAL.—Chapter 77 of such Code is 
amended by adding at the end the following new sec-
tion: 
‘‘SEC. 7531. ADVANCE PAYMENT OF EARNED INCOME CRED-
IT; EARNED INCOME SAVINGS ACCOUNTS. 
‘‘(a) IN GENERAL.—Not later than the date that is 
2 years after the date of the enactment of this section, 
the Secretary shall establish a program for making direct 
advance monthly payments of the credit allowable under 
section 32 to taxpayers who elect to receive such pay-
ments. 
‘‘(b) LIMITATION.—The aggregate monthly payments 
made under subsection (a) with respect to any taxpayer 
for any taxable year shall not exceed 75 percent of the 
estimated amount of the credit allowable under section 32 
to such taxpayer for such taxable year. 
‘‘(c) ELECTION.—The election under subsection (a) 
may be made or changed for subsequent periods at any 
time during the taxable year. In the case of an election 
made after the beginning of a taxable year, the monthly 
advance payments shall be made for months beginning 
after the date that such election becomes effective and the 
total amount of advance payments (subject to the limita-
tion of subsection (b)) shall be prorated among the re-
maining months. 
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‘‘(d) METHOD OF PAYMENT.—The program estab-
lished under subsection (a) shall include an option for tax-
payers to elect to receive payments under such program 
by prepaid debit card. 
‘‘(e) REPORTS TO TAXPAYERS.— 
‘‘(1) IN GENERAL.—With respect to payments 
made under this section for any calendar year, not 
later than January 31 of the following calendar 
year, the Secretary shall issue a statement to each 
individual with respect to whom payments were 
made under this section setting forth— 
‘‘(A) the name, address, and TIN of such 
person, 
‘‘(B) the aggregate amount of payments 
made under this section with respect to such 
person for such calendar year, 
‘‘(C) a statement that such individual is 
required to file a return of tax with respect to 
taxable years which include any portion of such 
calendar year regardless of whether such indi-
vidual has income tax liability with respect to 
such taxable years, and 
‘‘(D) such other information as the Sec-
retary may provide. 
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‘‘(2) 
ELECTION
TO
RECEIVE
STATEMENT 
THROUGH ON-LINE PORTAL.—A taxpayer may elect 
to receive the statement described in paragraph (1) 
through the on-line portal described in subsection 
(f). 
‘‘(f) RECAPTURE OF EXCESS PAYMENTS.—If the ag-
gregate payments made to any taxpayer under subsection 
(a) with respect to any taxable year exceed the credit al-
lowable under section 32 (determined without regard to 
subsection (h) thereof) with respect to such taxpayer for 
such taxable year, the tax imposed by chapter 1 with re-
spect to such taxpayer for such taxable year shall be in-
creased by such excess. 
‘‘(g) RESTRICTION
ON ALLOWANCE
OF ADVANCE 
PAYMENT IF EXCESS PAYMENTS NOT REPAID.—In the 
case of a taxpayer who fails to pay any tax liability which 
includes an increase determined under subsection (f) be-
fore the date on which payment of such tax is due, no 
payment shall be made under subsection (a) to such tax-
payer during the period beginning on such date and end-
ing with the end of the 2-year period which begins on the 
date that such tax liability (and any interest or penalties 
in connection with such liability) has been paid in full.’’. 
(2) COORDINATION WITH CREDIT.—Section 32 
of such Code, as amended by subsection (f), is 
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amended by inserting after subsection (g) the fol-
lowing new subsection: 
‘‘(h) COORDINATION WITH ADVANCE PAYMENT OF 
CREDIT.—With respect to any taxable year, the amount 
which would (but for this subsection) be allowed as a cred-
it to the taxpayer under this section shall be reduced (but 
not below zero) by the aggregate payments made under 
section 7531 to such taxpayer for such taxable year.’’. 
(3) ONE-ON-ONE
CONSULTATIONS.—The Sec-
retary of the Treasury (or the Secretary’s delegate) 
shall ensure that in-person, telephonic, and virtual 
one-on-one consultations between taxpayers and the 
Internal Revenue Service are available to assist tax-
payers at all times during regular business hours 
(and, in the case of in-person consultations, at all 
taxpayer assistance centers of the Internal Revenue 
Service) in determining— 
(A) their eligibility for the advance pay-
ment program established under section 7531, 
(B) the amount of the monthly payment 
for which the taxpayer is eligible under such 
program, 
(C) the circumstances or changes in cir-
cumstances which, based on the particular char-
acteristics of such taxpayer, are most likely to 
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result in excess payments to such taxpayer 
which would be subject to recapture under sec-
tion 7531(f), and 
(D) such other matters as such Secretary 
or delegate determines appropriate. 
(4) ON-LINE
PORTAL.—The Secretary of the 
Treasury (or the Secretary’s delegate) shall establish 
an on-line portal which allows taxpayers to— 
(A) elect to receive advance monthly pay-
ments under section 7531, including deter-
mining the estimated amount described in sub-
section (b) of such section and determining the 
amount of such monthly payments, 
(B) report changes in circumstances and 
modify the amount of future advance monthly 
payments under such section, and 
(C) stop future advance monthly payments 
under such section and pay back any advance 
monthly payments. 
(5) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 77 of such Code is amended by 
adding at the end the following new item: 
‘‘Sec. 7531. Advance payment of earned income credit; earned income savings 
accounts.’’. 
(h) OUTREACH PILOT PROGRAM.— 
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(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this Act, the Secretary 
of the Treasury (or the Secretary’s designee) shall 
establish a program to educate taxpayers regarding 
the availability of the earned income tax credit and 
the advance monthly payments of such credit. Pur-
suant to such program— 
(A) EITC EDUCATIONAL LETTERS.—The 
Secretary (or designee) shall provide a written 
notice describing the earned income tax credit, 
the qualifications for receiving such credit, and 
the program for the advance payment of such 
credit to each taxpayer that the Secretary (or 
designee) determines is likely to qualify for such 
credit. 
(B) DISTRICT OFFICE WORKSHOPS.—Each 
district office of the Internal Revenue Service 
shall provide workshops and seminars to assist 
and educate taxpayers regarding the earned in-
come tax credit and the program to provide ad-
vance monthly payments of such credit. 
(C) QUARTERLY REMINDERS.—The Inter-
nal Revenue Service shall provide written re-
minders each calendar quarter to taxpayers 
participating in the program to provide advance 
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