I 
119TH CONGRESS 
1ST SESSION H. R. 2927 
To amend the Internal Revenue Code of 1986 to increase the earned income 
tax credit, child tax credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 17, 2025 
Mrs. CHERFILUS-MCCORMICK (for herself, Mrs. MCIVER, Mr. JOHNSON of 
Georgia, and Ms. TLAIB) introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to increase 
the earned income tax credit, child tax credit, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CON-
TENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘All-Americans Tax Relief Act of 2025’’. 
(b) REFERENCES.—Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal 
is expressed in terms of an amendment to, or repeal of, 
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a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the In-
ternal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; references; table of contents. 
Sec. 2. Expansion of earned income tax credit. 
Sec. 3. Child tax credit made fully refundable. 
Sec. 4. Medical expenses deduction expanded and allowed to non-itemizers. 
Sec. 5. Deduction for daycare expenses. 
Sec. 6. Commuting expense deduction. 
Sec. 7. Tutoring expenses deduction. 
Sec. 8. Exclusion of interest payments on credit card debt. 
Sec. 9. Rent deduction for primary residence. 
Sec. 10. Exclusion of discharge of indebtedness. 
Sec. 11. Increase in capital gains rate. 
SEC. 2. EXPANSION OF EARNED INCOME TAX CREDIT. 
(a) DECREASE IN PHASEOUT PERCENTAGE.—Sec-
tion 32(b)(1) is amended to read as follows: 
‘‘(1) PERCENTAGES.—The credit percentage 
and phaseout percentage shall be determined as fol-
lows: 
‘‘In the case of an eligible indi-
vidual with: 
The credit 
percentage 
is: 
The phaseout percentage is: 
1 qualifying child ......................
38 20 
2 qualifying children .................
43 25 
3 or more qualifying children ...
45 25 
No qualifying children ..............
30 (35 in 
the case of 
a joint 
return) 
15’’. 
(b) INCREASE IN MAXIMUM CREDIT AMOUNT.—Sec-
tion 32(b)(2) is amended to read as follows: 
‘‘(2) AMOUNTS.— 
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‘‘(B) EARNED
INCOME
AMOUNT.—The 
term ‘earned income amount’ means— 
‘‘(i) in the case of an eligible indi-
vidual with 1 qualifying child, $15,000, 
‘‘(ii) in the case of an individual with 
2 or more qualifying children, $20,000, or 
‘‘(iii) in the case of an individual with 
no children— 
‘‘(I) in the case of a joint return, 
$10,000, or 
‘‘(II) in the case of any other in-
dividual, $8,500. 
‘‘(C) PHASEOUT AMOUNT.—The phaseout 
amount shall be— 
‘‘(i) $47,120 in the case of a joint re-
turn, or 
‘‘(ii) $40,000 in the case of any other 
individual.’’. 
(c) CONFORMING AMENDMENT.—Section 32(j)(1) is 
amended to read as follows: 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning after 2027 (2021 in the case of the 
dollar amount in subsection (i)(1)), each of the dol-
lar amounts in subsections (b)(2) and (i)(1) shall be 
increased by an amount equal to— 
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‘‘(A) such dollar amount, multiplied by 
‘‘(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 in subparagraph (A)(ii) 
thereof— 
‘‘(i) in the case of amounts in sub-
section (b)(2), ‘calendar year 2026’ for 
‘calendar year 2016’, and 
‘‘(ii) in the case of the $10,000 
amount in subsection (i)(1), ‘calendar year 
2020’ for ‘calendar year 2016’.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2026. 
SEC. 3. CHILD TAX CREDIT MADE FULLY REFUNDABLE. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of subtitle A is amended by insert-
ing after section 36B the following new section: 
‘‘SEC. 36D. CHILD TAX CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an 
amount equal to the sum of— 
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‘‘(1) $2,000 for each of up to 3 qualifying chil-
dren of the taxpayer for which the taxpayer is al-
lowed a deduction under section 151, plus 
‘‘(2) $500 for each other such qualifying child 
of the taxpayer. 
‘‘(b) LIMITATIONS.— 
‘‘(1) LIMITATION BASED ON ADJUSTED GROSS 
INCOME.— 
‘‘The amount of the credit allowable under 
subsection (a) shall be reduced (but not below 
zero) by $50 for each $1,000 (or fraction there-
of) by which the taxpayer’s modified adjusted 
gross income exceeds the threshold amount. For 
purposes of the preceding sentence, the term 
‘modified adjusted gross income’ means ad-
justed gross income increased by any amount 
excluded from gross income under section 911, 
931, or 933. 
‘‘(2) THRESHOLD AMOUNT.—For purposes of 
paragraph (1), the term ‘threshold amount’ means— 
‘‘(A) $110,000 in the case of a joint re-
turn, 
‘‘(B) $75,000 in the case of an individual 
who is not married, and 
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‘‘(C) $55,000 in the case of a married in-
dividual filing a separate return. 
For purposes of this paragraph, marital status shall 
be determined under section 7703. 
‘‘(c) QUALIFYING CHILD.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.— 
‘‘The term ‘qualifying child’ means a quali-
fying child of the taxpayer (as defined in sec-
tion 152(c)) who has not attained age 17. 
‘‘(2) EXCEPTION FOR CERTAIN NONCITIZENS.— 
‘‘The term ‘qualifying child’ shall not in-
clude any individual who would not be a de-
pendent 
if 
subparagraph 
(A) 
of 
section 
152(b)(3) were applied without regard to all 
that follows ‘resident of the United States’. 
‘‘(d) SOCIAL SECURITY NUMBER REQUIRED.—No 
credit shall be allowed under this section to a taxpayer 
with respect to any qualifying child unless the taxpayer 
includes the social security number of the taxpayer (and 
the taxpayer’s spouse, in the case of a joint return) and 
of such child on the return of tax for the taxable year. 
For purposes of the preceding sentence, the term ‘social 
security number’ means a social security number issued 
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to an individual by the Social Security Administration, but 
only if the social security number is issued— 
‘‘(1) to a citizen of the United States or pursu-
ant 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 
‘‘(2) before the due date for such return. 
‘‘(e) TAXABLE YEAR MUST BE FULL TAXABLE 
YEAR.— 
‘‘Except in the case of a taxable year closed by 
reason of the death of the taxpayer, no credit shall 
be allowable under this section in the case of a tax-
able year covering a period of less than 12 months. 
‘‘(f) RESTRICTIONS ON TAXPAYERS WHO IMPROP-
ERLY CLAIMED CREDIT IN PRIOR YEAR.— 
‘‘(1) TAXPAYERS MAKING PRIOR FRAUDULENT 
OR RECKLESS CLAIMS.— 
‘‘(A) IN GENERAL.— 
‘‘No credit shall be allowed under this 
section for any taxable year in the dis-
allowance period. 
‘‘(B) DISALLOWANCE
PERIOD.—For pur-
poses of subparagraph (A), the disallowance pe-
riod is— 
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‘‘The Secretary shall pay to each pos-
session of the United States with a mirror 
code tax system amounts equal to the loss 
(if any) to that possession by reason of the 
application of this section (determined 
without regard to this subsection) with re-
spect to taxable years beginning after 
2020. Such amounts shall be determined 
by the Secretary based on information pro-
vided by the government of the respective 
possession. 
‘‘(B) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.— 
‘‘No credit shall be allowed under this 
section for any taxable year to any indi-
vidual to whom a credit is allowable 
against taxes imposed by a possession of 
the United States with a mirror code tax 
system by reason of the application of this 
section in such possession for such taxable 
year. 
‘‘(C) MIRROR CODE TAX SYSTEM.— 
‘‘For purposes of this paragraph, the 
term ‘mirror code tax system’ means, with 
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respect to any possession of the United 
States, the income tax system of such pos-
session if the income tax liability of the 
residents of such possession under such 
system is determined by reference to the 
income tax laws of the United States as if 
such possession were the United States. 
‘‘(2) PUERTO
RICO.—The credit determined 
under this section shall be allowable to any bona fide 
resident of Puerto Rico (within the meaning of sec-
tion 937(a)). 
‘‘(3) AMERICAN SAMOA.— 
‘‘(A) IN GENERAL.— 
‘‘The Secretary shall pay to American 
Samoa amounts estimated by the Secretary 
as being equal to the aggregate benefits 
that would have been provided to residents 
of American Samoa by reason of the appli-
cation of this section for taxable years be-
ginning after 2020 if the provisions of this 
section had been in effect in American 
Samoa (applied as if American Samoa 
were the United States and without regard 
to the application of this section to bona 
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fide residents of Puerto Rico under sub-
section (i)(1)). 
‘‘(B) DISTRIBUTION REQUIREMENT.— 
‘‘Subparagraph (A) shall not apply 
unless American Samoa has a plan, which 
has been approved by the Secretary, under 
which American Samoa will promptly dis-
tribute such payments to its residents. 
‘‘(C) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.— 
‘‘(i) IN GENERAL.— 
‘‘In the case of a taxable year 
with respect to which a plan is ap-
proved under subparagraph (B), this 
section (other than this subsection) 
shall not apply to any individual eligi-
ble for a distribution under such plan. 
‘‘(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 
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American Samoa (within the meaning of 
section 937(a)). 
‘‘(4) TREATMENT OF PAYMENTS.— 
‘‘For purposes of section 1324 of title 31, 
United States Code, the payments under this 
subsection shall be treated in the same manner 
as a refund due from a credit provision referred 
to in subsection (b)(2) of such section. 
‘‘(h) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning after 2025, the dollar amounts in 
subsections (a) and (b) shall be increased by an 
amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(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 ‘calendar year 2024’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
‘‘(2) ROUNDING.—If any increase under para-
graph (1) is not a multiple of $50, such increase 
shall be rounded to the nearest multiple of $50.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart C of part IV of subchapter A of chapter 1 
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of subtitle A is amended by inserting after the item relat-
ing to section 36B the following new section: 
‘‘Sec. 36D. Child tax credit.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 of subtitle A is 
amended by striking the item relating to section 24. 
(2) Section 26(b)(2) is amended by inserting 
‘‘and’’ after the comma in subparagraph (X), by 
striking ‘‘, and’’ at the end of subparagraph (Y), 
and by striking subparagraph (Z). 
(3) Section 45R(f)(3)(B) is amended by insert-
ing ‘‘(as in effect on the day before the date of the 
enactment of the øAll-Americans Tax Relief Act of 
2025¿)’’ after ‘‘section 24(d)(2)(C)’’. 
(4) Section 48D(d)(4) is amended by striking 
‘‘section 24(k)’’ and inserting ‘‘section 36D(j)’’. 
(5) Section 152(f)(6)(B)(ii) is amended by 
striking ‘‘section 24’’ and inserting ‘‘section 36D’’. 
(6) Section 501(c)(26) is amended by striking 
‘‘section 24(c)’’ in the matter following subpara-
graph (D) and inserting ‘‘section 36D(c)’’. 
(7) Section 3402(f)(1)(C) is amended by strik-
ing ‘‘section 24 (determined after application of sub-
section (j) thereof)’’ and inserting ‘‘section 36D’’. 
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(8) Section 6103(l)(13)(A)(v) is amended by 
striking ‘‘section 24’’ and inserting ‘‘section 36D’’. 
(9) Section 6213(g)(2) is amended— 
(A) in subparagraph (I), by striking ‘‘sec-
tion 24(e)’’ and inserting ‘‘section 36D(d)’’, 
(B) in subparagraph (L), by striking ‘‘24, 
32’’ and inserting ‘‘32, 36D’’, and 
(C) in subparagraph (P), by striking ‘‘sec-
tion 24(g)(2) or an entry on the return claim-
ing the credit under section 24’’ and inserting 
‘‘section 36D(f)(2) or an entry on the return 
claiming the credit under section 36D’’. 
(10) Section 6402(m) is amended by striking 
‘‘section 24 (by reason of subsection (d) thereof)’’ 
and inserting ‘‘section 36D’’. 
(11) Section 6417(f) is amended by striking 
‘‘section 24(k)’’ and inserting ‘‘section 36D(h)’’. 
(12) Subchapter B of chapter 65 of subtitle F 
is amended by repealing sections 6428, 6428A, 
6428B, and 6429 and the table of sections for such 
subchapter is amended by striking the items relating 
to such sections. 
(13) Section 6695(g)(2) is amended by striking 
‘‘section 24, 25A(a)(1), or 32’’ and inserting ‘‘sec-
tion 25A(a)(1), 32, or 36D’’. 
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(14) Chapter 77 of subtitle F is amended by re-
pealing section 7527A and the table of sections for 
such chapter is amended by striking the item relat-
ing to such section. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2026. 
SEC. 4. MEDICAL EXPENSES DEDUCTION EXPANDED AND 
ALLOWED TO NON-ITEMIZERS. 
(a) THRESHOLD
REMOVED.—Section 213(a) is 
amended by striking ‘‘, to the extent’’ and all that follows 
through ‘‘gross income’’. 
(b) DEDUCTION ALLOWED
TO NON-ITEMIZERS.— 
Section 63(b) is amended by striking ‘‘and’’ at the end 
of paragraph (3), by striking the period at the end of para-
graph (4) and inserting ‘‘, and’’, and by adding at the 
end the following new paragraph: 
‘‘(5) the deduction provided in section 213.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2026. 
SEC. 5. DEDUCTION FOR DAYCARE EXPENSES. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of subtitle A is amended by redesignating section 
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224 as section 225 and inserting after section 223 the fol-
lowing new section: 
‘‘SEC. 224. DAYCARE EXPENSES. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a deduction for the taxable year 
an amount equal to the qualified daycare expenses of the 
individual for such taxable year. 
‘‘(b) QUALIFIED DAYCARE EXPENSES.—For pur-
poses of this section, the term ‘qualified daycare expenses’ 
means the amounts paid or incurred by the individual as 
tuition for a dependent of the taxpayer who has not at-
tained the age of 7 to attend a childcare institution (as 
defined in section 1355.20 of title 45, Code of Federal 
Regulations).’’. 
(b) DEDUCTION ALLOWED
TO NON-ITEMIZERS.— 
Section 63(b) (as amended by section 4) is further amend-
ed by striking ‘‘and’’ at the end of paragraph (4), by strik-
ing the period at the end of paragraph (5) and inserting 
‘‘, and’’, and by adding at the end the following new para-
graph: 
‘‘(6) the deduction provided in section 224.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 of subtitle A 
is amended by striking the item relating to section 224 
and inserting the following new items: 
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‘‘Sec. 224. Daycare expenses. 
‘‘Sec. 225. Cross reference.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2026. 
SEC. 6. COMMUTING EXPENSE DEDUCTION. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of subtitle A is further amended by redesignating 
section 225 as section 226 and inserting after section 224 
the following new section: 
‘‘SEC. 225. COMMUTING EXPENSES. 
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, there shall be allowed as a deduction for the tax-
able year an amount equal to the qualified commuting ex-
penses of the individual for such taxable year. 
‘‘(b) QUALIFIED COMMUTING EXPENSES.—For pur-
poses of this section, the term ‘qualified commuting ex-
penses’ means the amounts paid or incurred by the indi-
vidual to use public transit to travel between such individ-
ual’s principal residence (as such term is used in section 
121) and such individual’s place of work at which such 
individual works not less than 20 hours per week (deter-
mined by averaging the number of hours worked at such 
location during the taxable year over the number of weeks 
such individual is employed by the same employer at the 
same location during such taxable year). 
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‘‘(c) ELIGIBLE INDIVIDUAL.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘eligible individual’ means an indi-
vidual whose modified adjusted gross income does 
not exceed— 
‘‘(A) $250,000 in the case of a joint re-
turn, and 
‘‘(B) $125,000 in the case of any other in-
dividual. 
‘‘(2) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this section, the term ‘modified ad-
justed gross income’ means adjusted gross income 
increased by an amount excluded from gross income 
under sections 911, 931, and 933. 
‘‘(d) REGULATIONS.—Not later than January 1, 
2027, the Secretary shall issue such regulations or other 
guidance as may be necessary or appropriate to carry out 
the purposes of this section, including— 
‘‘(1) identifying qualified commuting expenses, 
and 
‘‘(2) establishing a process to verify such ex-
penses incurred by individuals.’’. 
(b) DEDUCTION ALLOWED
TO NON-ITEMIZERS.— 
Section 63(b) is further amended by striking ‘‘and’’ at the 
end of paragraph (5), by striking the period at the end 
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of paragraph (6) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(7) the deduction provided in section 225.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 of subtitle A 
is further amended by striking the item relating to section 
225 (as amended by section 5) and inserting the following 
new items: 
‘‘Sec. 225. Commuting expenses. 
‘‘Sec. 226. Cross reference.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2026. 
SEC. 7. TUTORING EXPENSES DEDUCTION. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of subtitle A is further amended by redesignating 
section 226 as section 227 and inserting after section 225 
the following new section: 
‘‘SEC. 226. TUTORING EXPENSES. 
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, there shall be allowed as a deduction for the tax-
able year an amount equal to so much of the qualified 
tutoring expenses of the individual for such taxable year 
as does not exceed $2,500. 
‘‘(b) QUALIFIED TUTORING EXPENSES.—For pur-
poses of this section— 
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‘‘(1) IN GENERAL.—The term ‘qualified tutor-
ing expenses’ means the amounts paid or incurred 
by the individual for tutoring services for a depend-
ent of the taxpayer who attends a public elementary 
school or public secondary school (as defined in sec-
tion 8101 of the Elementary and Secondary Edu-
cation Act of 1965) eligible for funds under part A 
of title I of the Elementary or Secondary Education 
Act of 1965 or any charter school (as defined in sec-
tion 4310 of such Act). 
‘‘(2) TUTORING SERVICES.—The term ‘tutoring 
services’ means direct tutoring of a student— 
‘‘(A) in a group of not more than 4 stu-
dents per instructor, 
‘‘(B) for the purpose of increasing aca-
demic achievement in reading, math, science, 
writing and language arts, social studies, his-
tory, civics, or a foreign language, 
‘‘(C) through planned sessions of not less 
than 1 hour and not more than 3 hours which 
occur— 
‘‘(i) not less frequently than once per 
week for 6 consecutive weeks, or 
‘‘(ii) not less frequently than once per 
week for 9 weeks during a 1-year period, 
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