‘‘(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 ‘gesta-
tional 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 sur-
gery, or 
‘‘(iii) midwifery, or 
‘‘(B) otherwise legally authorized to— 
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‘‘(i) perform births and to diagnose 
and attend miscarriages or stillbirths, and 
‘‘(ii) perform examinations to deter-
mine 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 pru-
dent 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) CLERICAL AMENDMENT.—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 in-
serting after the item relating to section 36C the following 
new item: 
‘‘Sec. 36D. Credit for pregnant mothers.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
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TITLE I—OTHER AMENDMENTS 
TO THE INTERNAL REVENUE 
CODE OF 1986 
SEC. 201. SIMPLIFICATION OF EARNED INCOME CREDIT 
FOR TAXPAYERS WITH CHILDREN. 
(a) ADDITIONAL LIMITATION.—Section 32(a)(2) 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 phase-
out 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 re-
turn, $700, or 
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‘‘(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 re-
turn, $4,300, or 
‘‘(II) who is filing a joint return, 
$5,000.’’. 
(b) CREDIT PERCENTAGE AND PHASEOUT PERCENT-
AGE.—The table contained in section 32(b)(1) of the In-
ternal 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 in-
serting ‘‘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 section 32(b)(2)(A) 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’’, 
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(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 in-
serting ‘‘$9,150’’, and 
(6) by striking ‘‘$5,280’’ in the last row and in-
serting ‘‘$10,000’’. 
(d) JOINT RETURNS.—Section 32(b)(2)(B) of the In-
ternal 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 in-
creased— 
‘‘(i) by $2,059, in the case of a tax-
payer with 1 or more qualifying children, 
and 
‘‘(ii) by $9,151, in the case of a tax-
payer with no qualifying children.’’. 
(e) INFLATION ADJUSTMENT.—Section 32(j)(1) of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘2015’’ and inserting ‘‘2026’’, 
(2) by striking clauses (i) and (ii) of subpara-
graph (B) thereof and redesignating clause (iii) of 
such subparagraph as clause (ii), and 
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(3) by inserting before clause (ii) of subpara-
graph (B) thereof, as so redesignated, the following 
new clause: 
‘‘(i) in the case of amounts in sub-
section (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
CHIL-
DREN.— 
(A) IN
GENERAL.—Subject to subpara-
graph (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 sec-
tion had not been enacted. 
(B) SEPARATE APPLICATION.—In the case 
of any eligible individual (as so defined) who 
has— 
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(i) any qualifying children for the tax-
able 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 (pursu-
ant 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 sub-
paragraph (A)(ii) or (B) of section 152(c)(3). 
SEC. 202. ELIMINATION OF ADDITIONAL EXEMPTION FOR 
DEPENDENTS. 
(a) IN GENERAL.—Section 151(d)(5) 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 sub-
section (c), the term ‘exemption amount’ means 
zero. 
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‘‘(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 deter-
mining whether a deduction is allowed or allow-
able, or whether a taxpayer is entitled to a de-
duction, 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 house-
hold 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)— 
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(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), re-
spectively, and 
(iii) in subparagraph (C), by striking 
‘‘clauses (i), (ii), and (iii)’’ and inserting 
‘‘clauses (i) and (ii)’’, and 
(5) in subsection (j)— 
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(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) Section 25B(b)(2) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(2) OTHER RETURNS.—In the case of any tax-
payer not described in paragraph (1), the applicable 
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percentage shall be determined under paragraph (1) 
except that such paragraph shall be applied by sub-
stituting 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 amend-
ed— 
(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 de-
scribed 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 in-
serting the following: 
‘‘(ii) in the case of a taxpayer not de-
scribed in clause (i), $150,000.’’. 
(4) Section 36B(b)(3)(B)(ii)(I)(aa) of such 
Code is amended by striking ‘‘and heads of house-
holds’’. 
(5) Section 63(c) of such Code is amended— 
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(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
DEDUC-
TION.—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), 
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(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 ‘‘sub-
paragraphs (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 amend-
ed— 
(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)— 
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(i) by striking ‘‘clause (i), (ii), or 
(iii)’’ and inserting ‘‘clause (i) or (ii)’’, and 
(ii) by striking ‘‘clause (iv)’’ and in-
serting ‘‘clause (iii)’’. 
(9) Section 6433(b)(3)(B) 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) Section 6695(g) 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 25A(a)(1), 32, or 36C shall 
pay a penalty of $500 for each such failure.’’. 
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(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 EX-
PENSES FOR HOUSEHOLD AND DEPENDENT 
CARE SERVICES NECESSARY FOR GAINFUL 
EMPLOYMENT. 
(a) IN GENERAL.—Section 21 of the Internal Rev-
enue 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 subpara-
graph (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 in-
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curred 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 at-
tained 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 ‘‘sub-
section (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.—Section 164(b)(6) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘beginning 
after December 31, 2017, and before January 1, 2026’’ 
and inserting ‘‘beginning after December 31, 2025’’. 
(b) CLERICAL AMENDMENT.—The heading for sec-
tion 164(b)(6) of such Code is amended by striking ‘‘2018 
THROUGH 2025’’ and inserting ‘‘AFTER 2025’’. 
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(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
Æ 
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