I 
119TH CONGRESS 
1ST SESSION H. R. 6634 
To amend the Internal Revenue Code of 1986 to establish a refundable 
childhood education tax credit with monthly advance payments. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 11, 2025 
Mr. FIELDS 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 establish 
a refundable childhood education tax credit with monthly 
advance payments. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ESTABLISHMENT OF REFUNDABLE CHILD-
HOOD EDUCATION TAX CREDIT WITH MONTH-
LY ADVANCE PAYMENTS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 24 the fol-
lowing new section: 
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‘‘SEC. 24A. MONTHLY CHILDHOOD EDUCATION TAX CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year the sum of the monthly childhood edu-
cation allowances determined with respect to the taxpayer 
under subsection (b) for each calendar month during such 
taxable year. 
‘‘(b) MONTHLY CHILDHOOD EDUCATION ALLOW-
ANCE.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘monthly childhood education allow-
ance’ means, with respect to any taxpayer for any 
calendar month, an amount equal to $667 for each 
specified child of such taxpayer. 
‘‘(2) LIMITATION BASED ON HOUSEHOLD IN-
COME.— 
‘‘(A) IN
GENERAL.—The dollar amount 
under paragraph (1) with respect to any tax-
payer for any calendar month shall be reduced 
(but not below zero) by an amount which bears 
the same ratio to such dollar amount (deter-
mined without regard to this paragraph) as— 
‘‘(i) the excess (if any) of— 
‘‘(I) the taxpayer’s household in-
come for the taxable year which in-
cludes such month, over 
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‘‘(II) an amount equal to 300 
percent of the poverty line for a fam-
ily of the size involved for such tax-
able year, bears to 
‘‘(ii) an amount equal to 100 percent 
of the poverty line for a family of the size 
involved for such taxable year. 
‘‘(B) DEFINITIONS RELATED TO LIMITA-
TION
BASED
ON
HOUSEHOLD
INCOME.—For 
purposes of this paragraph— 
‘‘(i) HOUSEHOLD INCOME.—The term 
‘household income’ means, with respect to 
any taxpayer for any taxable year, an 
amount equal to the sum of— 
‘‘(I) the modified adjusted gross 
income of the taxpayer for such tax-
able year, plus 
‘‘(II) the aggregate modified ad-
justed gross incomes of all other indi-
viduals for such taxable year who— 
‘‘(aa) were taken into ac-
count in determining the tax-
payer’s family size under clause 
(iii) for such taxable year, and 
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‘‘(bb) were required to file a 
return of tax imposed by section 
1 for such taxable year. 
‘‘(ii) MODIFIED ADJUSTED GROSS IN-
COME.—The term ‘modified adjusted gross 
income’ means adjusted gross income in-
creased by any amount excluded from 
gross income under section 911, 931, or 
933. 
‘‘(iii) FAMILY SIZE.—The family size 
involved with respect to any taxpayer for 
any taxable year shall be equal to the num-
ber of individuals for whom the taxpayer is 
allowed a deduction under section 151 for 
such taxable year. 
‘‘(iv) POVERTY LINE.—The term ‘pov-
erty line’ has the meaning given such term 
in section 2110(c)(5) of the Social Security 
Act. 
‘‘(3) INFLATION ADJUSTMENT.—In the case of 
any month beginning after December 31, 2025, the 
$667 amount under paragraph (1) shall be increased 
by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the percentage (if any) by which— 
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‘‘(i) the CPI (as defined in section 
1(f)(4)) for the calendar year preceding 
the calendar year in which such month be-
gins, exceeds 
‘‘(ii) the CPI (as so defined) for cal-
endar year 2024. 
‘‘(c) SPECIFIED CHILD.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘specified child’ 
means, with respect to any taxpayer for any cal-
endar month, an individual— 
‘‘(A) who has the same principal place of 
abode as the taxpayer for more than one-half of 
such month, 
‘‘(B) who, as of the beginning of such 
month, will have attained age 2 and will not 
have attained age 5, 
‘‘(C) who receives care from the taxpayer 
during such month that is not compensated, 
‘‘(D) who is enrolled in an early childhood 
education program during such month, and 
‘‘(E) who either— 
‘‘(i) is a citizen, national, or resident 
of the United States, or 
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‘‘(ii) if the taxpayer is a citizen or na-
tional of the United States, is a legally 
adopted individual of such taxpayer or is 
lawfully placed with such taxpayer for legal 
adoption by such taxpayer. 
‘‘(2) EARLY
CHILDHOOD
EDUCATION
PRO-
GRAM.—The term ‘early childhood education pro-
gram’ has the meaning given such term in section 
103 of the Higher Education Act of 1965, except 
that such term includes any private prekindergarten 
program licensed or regulated by a State. 
‘‘(3) CARE FROM THE TAXPAYER.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided by the Secretary, whether any indi-
vidual receives care from the taxpayer (within 
the meaning of paragraph (1)(C)) shall be de-
termined on the basis of facts and cir-
cumstances with respect to the following fac-
tors: 
‘‘(i) The supervision provided by the 
taxpayer regarding the daily activities and 
needs of the individual. 
‘‘(ii) The maintenance by the taxpayer 
of a secure environment at which the indi-
vidual resides. 
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‘‘(iii) The provision or arrangement by 
the taxpayer of, and transportation by the 
taxpayer to, medical care at regular inter-
vals and as required for the individual. 
‘‘(iv) The involvement by the taxpayer 
in, and financial and other support by the 
taxpayer for, educational or similar activi-
ties of the individual. 
‘‘(v) Any other factor that the Sec-
retary determines to be appropriate to de-
termine whether the individual receives 
care from the taxpayer. 
‘‘(B) DETERMINATION OF WHETHER CARE 
IS
COMPENSATED.—For purposes of deter-
mining if care is compensated within the mean-
ing of paragraph (1)(C), compensation from the 
Federal Government, a State or local govern-
ment, a Tribal government, or any possession of 
the United States shall not be taken into ac-
count. 
‘‘(4) APPLICATION OF TIE-BREAKER RULES.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (D), if any individual would (but 
for this paragraph) be a specified child of 2 or 
more taxpayers for any month, such individual 
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shall be treated as the specified child only of 
the taxpayer who is— 
‘‘(i) the parent of the individual (or, if 
such individual would (but for this para-
graph) be a specified child of 2 or more 
parents of the individual for such month, 
the parent of the individual determined 
under subparagraph (B)), 
‘‘(ii) if the individual is not a specified 
child of any parent of the individual (deter-
mined without regard to this paragraph), 
the specified relative of the individual with 
the highest adjusted gross income for the 
taxable year which includes such month, or 
‘‘(iii) if the individual is neither a 
specified child of any parent of the indi-
vidual nor a specified child of any specified 
relative of the individual (in both cases de-
termined without regard to this para-
graph), the taxpayer with the highest ad-
justed gross income for the taxable year 
which includes such month. 
‘‘(B) TIE-BREAKER AMONG PARENTS.—If 
any individual would (but for this paragraph) 
be the specified child of 2 or more parents of 
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the individual for any month, such child shall 
be treated only as the specified child of— 
‘‘(i) the parent with whom the child 
resided for the longest period of time dur-
ing such month, or 
‘‘(ii) if the child resides with both par-
ents for the same amount of time during 
such month, the parent with the highest 
adjusted gross income for the taxable year 
which includes such month. 
‘‘(C) SPECIFIED RELATIVE.—For purposes 
of this paragraph, the term ‘specified relative’ 
means an individual who is— 
‘‘(i) an ancestor of a parent of the 
specified child, 
‘‘(ii) a brother or sister of a parent of 
the specified child, or 
‘‘(iii) a brother, sister, stepbrother, or 
stepsister of the specified child. 
‘‘(D) CERTAIN
PARENTS
OR
SPECIFIED 
RELATIVES NOT TAKEN INTO ACCOUNT.—This 
paragraph shall be applied without regard to 
any parent or specified relative of an individual 
for any month if— 
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‘‘(i) such parent or specified relative 
elects to have such individual not be treat-
ed as a specified child of such parent or 
specified relative for such month, 
‘‘(ii) in the case of a parent of such 
individual, the adjusted gross income of 
the taxpayer (with respect to whom such 
individual would be treated as a specified 
child after application of this subpara-
graph) for the taxable year which includes 
such month is higher than the highest ad-
justed gross income of any parent of the 
individual for any taxable year which in-
cludes such month (determined without re-
gard to any parent with respect to whom 
such individual is not a specified child, de-
termined without regard to subparagraphs 
(A) and (B) and after application of this 
subparagraph), and 
‘‘(iii) in the case of a specified relative 
of such individual, the adjusted gross in-
come of the taxpayer (with respect to 
whom such individual would be treated as 
a specified child after application of this 
subparagraph) for the taxable year which 
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includes such month is higher than the 
highest adjusted gross income of any par-
ent and any specified relative of the indi-
vidual for any taxable year which includes 
such month (determined without regard to 
any parent and any specified relative with 
respect to whom such individual is not a 
specified child, determined without regard 
to subparagraphs (A) and (B) and after 
application of this subparagraph). 
‘‘(E) TREATMENT OF JOINT RETURNS.— 
For purposes of this paragraph, with respect to 
any month, the adjusted gross income of each 
person who files a joint return for the taxable 
year which includes such month is the total ad-
justed gross income shown on the joint return 
for the taxable year. 
‘‘(F) PARENT.—Except as otherwise pro-
vided by the Secretary, the term ‘parent’ shall 
have the same meaning as when used in section 
152(c)(4). 
‘‘(5) TREATMENT OF TEMPORARY ABSENCES.— 
Except as provided in regulations or other guidance 
issued by the Secretary, for purposes of this sub-
section— 
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‘‘(A) IN GENERAL.—In the case of any in-
dividual’s temporary absence from such individ-
ual’s principal place of abode, each day com-
posing the temporary absence shall— 
‘‘(i) be treated as a day at such indi-
vidual’s principal place of abode, 
‘‘(ii) be treated as satisfying the care 
requirement described in paragraph (1)(C) 
for each day described in clause (i), and 
‘‘(iii) not be treated as a day at any 
other location. 
‘‘(B) TEMPORARY
ABSENCE.—For pur-
poses of subparagraph (A), an absence shall be 
treated as temporary if— 
‘‘(i) the individual would have resided 
at the place of abode but for the absence, 
and 
‘‘(ii) 
under 
the 
facts 
and 
cir-
cumstances, it is reasonable to assume that 
the individual will return to reside at the 
place of abode. 
‘‘(6) SPECIAL RULE FOR DIVORCED PARENTS, 
ETC.—Rules similar to the rules of section 152(e) 
shall apply for purposes of this subsection. 
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‘‘(7) ELIGIBILITY DETERMINED ON BASIS OF 
PRESUMPTIVE ELIGIBILITY.— 
‘‘(A) IN
GENERAL.—If a period of pre-
sumptive eligibility is established under section 
7527B(c) with respect to any taxpayer and 
child— 
‘‘(i) such child shall be treated as the 
specified child of such taxpayer for any 
month in such period of presumptive eligi-
bility, and 
‘‘(ii) such child shall not be treated as 
the specified child of any other taxpayer 
with respect to whom a period of presump-
tive eligibility has not been established for 
any such month. 
‘‘(B) ABILITY OF CREDIT CLAIMANTS TO 
ESTABLISH PRESUMPTIVE ELIGIBILITY.—Noth-
ing in section 7527B(c) shall be interpreted to 
preclude a taxpayer from establishing a period 
of presumptive eligibility (including any period 
described in subparagraph (D) with respect to 
which payment could be made) with respect to 
any specified child for purposes of this section 
solely because such taxpayer affirmatively elects 
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not to receive monthly advance childhood edu-
cation payments under section 7527B. 
‘‘(C) EXCEPTION FOR INCOME-BASED TIE- 
BREAKER RULES.—If a period of presumptive 
eligibility is established under section 7527B(c) 
for any individual with respect to any taxpayer 
and such individual is not the specified child of 
such taxpayer for any month in such period by 
reason of such taxpayer failing to be described 
in clause (i), (ii), or (iii) of paragraph (4)(A) 
for the taxable year which includes such month, 
subparagraph (A) shall not apply with respect 
to such month. 
‘‘(D) TREATMENT
OF
CERTAIN
RETRO-
ACTIVE PAYMENTS.—If any payment is made 
under subparagraph (A) or (B) of section 
7527B(f)(3) or paragraph (1) or (2) of section 
7527B(g), with respect to any taxpayer and 
child for any period, such period shall be treat-
ed as a period of presumptive eligibility estab-
lished under section 7527B(c) with respect to 
such taxpayer and child for purposes of apply-
ing subparagraph (A). 
‘‘(E) FRAUD
AND
INTENTIONAL
DIS-
REGARD OF RULES OR REGULATIONS.—If the 
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Secretary determines that the taxpayer com-
mitted fraud or intentionally disregarded rules 
or regulations in establishing or maintaining 
any period of presumptive eligibility, the 
months with respect to which such fraud or in-
tentional disregard relates shall not be treated 
as a period of presumptive eligibility for pur-
poses of subparagraph (A). 
‘‘(d) CREDIT REFUNDABLE.—If the taxpayer (in the 
case of a joint return, either spouse) has a principal place 
of abode (determined as provided in section 32) in the 
United States or Puerto Rico for more than one-half of 
any calendar month during the taxable year, so much of 
the credit otherwise allowed under subsection (a) as is at-
tributable to monthly childhood education allowances with 
respect to any such calendar month shall be allowed under 
subpart C (and not allowed under this subpart). 
‘‘(e) IDENTIFICATION REQUIREMENTS.— 
‘‘(1) SPECIFIED
CHILD
IDENTIFICATION
RE-
QUIREMENT.—No credit shall be allowed under this 
section to a taxpayer with respect to any specified 
child unless the taxpayer includes the name and tax-
payer identification number of such specified child 
on the return of tax for the taxable year and such 
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taxpayer identification number was issued on or be-
fore the due date for filing such return. 
‘‘(2) TAXPAYER
IDENTIFICATION
REQUIRE-
MENT.—No credit shall be allowed under this section 
if the taxpayer identification number of the taxpayer 
was issued after the due date for filing the return 
for the taxable year. 
‘‘(f) RESTRICTIONS ON TAXPAYERS WHO IMPROP-
ERLY
CLAIMED
CREDIT
OR
IMPROPERLY
RECEIVED 
MONTHLY
ADVANCE
CHILDHOOD
EDUCATION
PAY-
MENTS.— 
‘‘(1) TAXPAYERS MAKING PRIOR FRAUDULENT 
OR RECKLESS CLAIMS.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under this section for any taxable year 
(and no payment shall be made under section 
7527B for any month) in the disallowance pe-
riod. 
‘‘(B) DISALLOWANCE
PERIOD.—For pur-
poses of subparagraph (A), the disallowance pe-
riod is— 
‘‘(i) the period of 120 calendar 
months after the most recent calendar 
month for which there was a final deter-
mination that the taxpayer’s claim of cred-
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it under this section (or payment received 
under section 7527B) was due to fraud, 
and 
‘‘(ii) the period of 24 calendar months 
after the most recent calendar month for 
which there was a final determination that 
the taxpayer’s claim of credit under this 
section (or payment received under section 
7527B) was due to reckless or intentional 
disregard of rules and regulations (but not 
due to fraud). 
‘‘(2) TAXPAYERS
MAKING
IMPROPER
PRIOR 
CLAIMS.—In the case of a taxpayer who is denied 
credit under this section for any taxable year as a 
result of the deficiency procedures under subchapter 
B of chapter 63, no credit shall be allowed under 
this section for any subsequent taxable year (and no 
payment shall be made under section 7527B for any 
subsequent month) unless the taxpayer provides 
such information as the Secretary may require to 
demonstrate eligibility for such credit. 
‘‘(3) COORDINATION
WITH
POSSESSIONS
OF 
THE UNITED STATES.—For purposes of this sub-
section, a taxpayer’s claim of credit under this sec-
tion (or payment received under section 7527B) in-
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cludes a claim of credit under this section of the in-
come tax law of any jurisdiction other than the 
United States (or similar payment received under 
section 7527B of such income tax law), and a claim 
made or a payment received from American Samoa 
pursuant 
to 
a 
plan 
described 
in 
subsection 
(h)(3)(B). 
‘‘(g) RECONCILIATION OF CREDIT AND MONTHLY 
ADVANCE CHILDHOOD EDUCATION PAYMENTS.— 
‘‘(1) IN GENERAL.—The amount otherwise de-
termined under subsection (a) with respect to any 
taxpayer for any taxable year shall be reduced (but 
not below zero) by the aggregate amount of pay-
ments made under section 7527B to such taxpayer 
for one or more calendar months in 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) INCREASE IN TAX EQUAL TO EXCESS AD-
VANCE PAYMENTS IN CERTAIN CIRCUMSTANCES.—If 
the aggregate amount of payments made to the tax-
payer under section 7527B for one or more calendar 
months in such taxable year exceeds the amount al-
lowed as a credit under subpart C by reason of this 
section with respect to such taxpayer for such tax-
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able year (without regard to paragraph (1) of this 
subsection), the tax imposed by this chapter for such 
taxable year shall be increased by so much of such 
excess as is attributable to one or more of the fol-
lowing: 
‘‘(A) Fraud, or reckless or intentional dis-
regard of rules and regulations, by the tax-
payer. 
‘‘(B) Changes in the taxpayer’s household 
income that affect the application of the limita-
tion imposed by subsection (b)(2). 
‘‘(C) Payments under section 7527B which 
were made for months which were not part of 
a period of presumptive eligibility. 
‘‘(D) A failure to be the taxpayer described 
in clause (i), (ii), or (iii) of subsection 
(c)(4)(A). 
‘‘(E) A failure to satisfy the requirements 
of subsection (d). 
‘‘(F) A failure to satisfy the requirements 
of paragraph (1) or (2) of subsection (e), except 
that a failure to satisfy the requirements of 
subsection (e)(1) shall not be taken into ac-
count under this paragraph if the taxpayer 
demonstrates to the satisfaction of the Sec-
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retary that it is reasonable to expect that the 
specified child will be issued a taxpayer identi-
fication number and that the delay in such 
issuance was due to reasonable cause and not 
willful neglect. 
‘‘(G) Such other circumstances as the Sec-
retary identifies for purposes of this paragraph 
to facilitate the administration and enforcement 
by the Secretary of section 7527B, to minimize 
the amount of advance payments made under 
section 7527B to ineligible individuals, and to 
prevent abuse. 
‘‘(H) Payments subject to treatment as ex-
cess advance payments after notice under sec-
tion 7527B(j)(2). 
‘‘(3) JOINT
RETURNS.—Except as otherwise 
provided by the Secretary, in the case of an advance 
payment made under section 7527B with respect to 
a joint return, half of such payment shall be treated 
as having been made to each individual filing such 
return. 
‘‘(4) COORDINATION
WITH
POSSESSIONS
OF 
THE UNITED STATES.—For purposes of this sub-
section, payments made under section 7527B include 
payments made by any jurisdiction other than the 
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United States under section 7527B of the income 
tax law of such jurisdiction, and advance payments 
made by American Samoa pursuant to a plan de-
scribed in subsection (h)(3)(B). Any increase in tax 
imposed on a taxpayer by reason of paragraph (2) 
of the income tax law of a jurisdiction other than 
the United States shall be considered to reduce the 
aggregate amount of payments made to such tax-
payer by such jurisdiction. In carrying out this sec-
tion, the Secretary shall coordinate with each posses-
sion of the United States to prevent any application 
of this paragraph that is inconsistent with the pur-
poses of this subsection. 
‘‘(h) APPLICATION OF CREDIT IN POSSESSIONS.— 
‘‘(1) MIRROR CODE POSSESSIONS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
pay to each possession 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 with-
out regard to this subsection) with respect to 
taxable years beginning in calendar years after 
2025. Such amounts shall be determined by the 
Secretary based on information provided by the 
government of the respective possession. 
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‘‘(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 individual to 
whom a credit is allowable against taxes im-
posed by a possession of the United States with 
a mirror code tax system by reason of the appli-
cation 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 respect to any 
possession of the United States, the income tax 
system of such possession if the income tax li-
ability 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) CROSS REFERENCES RELATED TO APPLI-
CATION
OF
CREDIT
TO
RESIDENTS
OF
PUERTO 
RICO.— 
‘‘(A) For application of refundable credit 
to residents of Puerto Rico, see subsection (d). 
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‘‘(B) For application of advance payment 
to residents of Puerto Rico, see section 
7527B(b)(5). 
‘‘(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 resi-
dents of American Samoa by reason of the ap-
plication of this section for taxable years begin-
ning in calendar years after 2025 if the provi-
sions of this section had been in effect in Amer-
ican Samoa (applied as if American Samoa 
were the United States and without regard to 
the application of this section to residents of 
Puerto Rico under subsection (d)). 
‘‘(B) DISTRIBUTION REQUIREMENT.—Sub-
paragraph (A) shall not apply unless American 
Samoa has a plan, which has been approved by 
the Secretary, under which American Samoa 
will promptly distribute such payments to its 
residents. 
‘‘(C) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.— 
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‘‘(i) IN GENERAL.—In the case of a 
taxable year with respect to which a plan 
is approved under subparagraph (B), this 
section (other than this subsection) shall 
not apply to any individual eligible 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), subsection (d) 
shall be applied by substituting ‘, Puerto 
Rico, or American Samoa’ for ‘or Puerto 
Rico’. 
‘‘(4) TREATMENT
OF
PAYMENTS.—For pur-
poses 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. 
‘‘(i) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as the Secretary determines 
necessary or appropriate to carry out the purposes of this 
section, including regulations or other guidance— 
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‘‘(1) for determining whether an individual re-
ceives care from a taxpayer for purposes of sub-
section (c)(1)(C), and 
‘‘(2) to coordinate or modify the application of 
this section and section 7527B in the case of any 
taxpayer— 
‘‘(A) whose taxable year is other than a 
calendar year, 
‘‘(B) whose filing status for a taxable year 
is different from the status used for deter-
mining one or more monthly payments under 
section 7527B during such taxable year, or 
‘‘(C) whose principal place of abode for 
any month is different from the principal place 
of abode used for determining the monthly pay-
ment under section 7527B for such month.’’. 
(b) ADVANCE PAYMENT OF MONTHLY CHILDHOOD 
EDUCATION TAX CREDIT.—Chapter 77 of such Code is 
amended by inserting after section 7527A the following 
new section: 
‘‘SEC. 7527B. ADVANCE PAYMENT OF MONTHLY CHILDHOOD 
EDUCATION TAX CREDIT. 
‘‘(a) IN GENERAL.—The Secretary shall pay to each 
taxpayer, during each calendar month which is during a 
period of presumptive eligibility with respect to the tax-
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payer and any child, an amount equal to the monthly ad-
vance childhood education payment determined with re-
spect to such taxpayer for such month. 
‘‘(b) MONTHLY ADVANCE CHILDHOOD EDUCATION 
PAYMENT.—The term ‘monthly advance childhood edu-
cation payment’ means, with respect to any taxpayer for 
any calendar month, the amount (if any) which is esti-
mated by the Secretary as being equal to the monthly 
childhood education allowance which would be determined 
under section 24A(b) with respect to such taxpayer for 
such calendar month if— 
‘‘(1) the only specified children of such taxpayer 
for such calendar month are the specified children of 
such taxpayer for the reference month (determined 
without regard to section 24A(c)(7)), 
‘‘(2) the ages of such children (and the status 
of such children as specified children) are deter-
mined for such calendar month by taking into ac-
count the passage of time since such reference 
month, 
‘‘(3) each child is only taken into account as a 
specified child for such calendar month if such cal-
endar month is during a period of presumptive eligi-
bility with respect to the taxpayer and such child, 
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‘‘(4) the limitations of section 24A(b)(2) were 
applied with respect to the reference taxable year 
rather than with respect to the applicable taxable 
year, and 
‘‘(5) no monthly childhood education allowance 
was determined with respect to such taxpayer for 
such calendar month unless the taxpayer (in the 
case of a joint return, either spouse) has a principal 
place of abode (determined as provided in section 
32) in the United States or Puerto Rico for more 
than one-half of the reference month. 
‘‘(c) PERIOD OF PRESUMPTIVE ELIGIBILITY.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘period of presumptive eligibility’ 
means, with respect to any taxpayer and any child, 
the period— 
‘‘(A) beginning with the calendar month 
following the calendar month during which the 
taxpayer provides the Secretary with sufficient 
information for the Secretary to— 
‘‘(i) determine that such child was a 
specified child of the taxpayer for the ref-
erence month (determined without regard 
to section 24A(c)(7)), and 
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‘‘(ii) estimate the monthly advance 
childhood education payment for such cal-
endar month, and 
‘‘(B) ending with the earliest of— 
‘‘(i) the month beginning immediately 
after the month on which the Secretary 
sends the taxpayer a written notice that 
the taxpayer’s period of presumptive eligi-
bility with respect to such child is being 
terminated by reason of information known 
to the Secretary (including a failure to pro-
vide annual information under paragraph 
(2)) which casts doubt on such taxpayer’s 
status as being allowed the monthly child-
hood education allowance under section 
24A for such child (determined without re-
gard to section 24A(c)(7)) with respect to 
one or more months following the reference 
month, 
‘‘(ii) any month with respect to which 
the taxpayer notifies the Secretary that 
such taxpayer is not allowed a monthly 
childhood education allowance for such 
month under section 24A(b) (determined 
without regard to section 24A(c)(7)), and 
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‘‘(iii) the month beginning imme-
diately before the first month of a new pe-
riod of presumptive eligibility with respect 
to such taxpayer and such child which is 
established on the basis of a reference 
month more recent than the reference 
month with respect to which such prior pe-
riod was established (including on the basis 
of an annual renewal described in para-
graph (2)). 
‘‘(2) ANNUAL RENEWAL.—The Secretary shall 
terminate a taxpayer’s period of presumptive eligi-
bility with respect to any child under paragraph 
(1)(B)(i) unless such taxpayer provides information 
sufficient to establish a new period of presumptive 
eligibility with respect to such child (as described in 
paragraph (1)(B)(ii)) on an annual basis. 
‘‘(3) PRESUMPTIVE
ELIGIBILITY
BASED
ON 
CERTAIN GOVERNMENT PROGRAMS.—The Secretary 
shall issue regulations or other guidance to establish 
procedures under which— 
‘‘(A) based on information provided to the 
Secretary by one or more government entities, 
a parent or specified relative of a child is treat-
ed as automatically establishing a period of pre-
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sumptive eligibility with respect to such child, 
and 
‘‘(B) the month for which such period be-
gins, the month by which the first annual re-
newal described in paragraph (2) must be com-
pleted, and any additional circumstances under 
which such period will terminate, are deter-
mined. 
‘‘(4) TAXPAYER
RESPONSIBILITY
TO
NOTIFY 
SECRETARY.—In the event that any taxpayer is not 
allowed a monthly childhood education allowance 
under section 24A(b) (determined without regard to 
section 24A(c)(7)) for any month in a period of pre-
sumptive eligibility with respect to such taxpayer, 
such taxpayer shall notify the Secretary under para-
graph (1)(B)(ii) at such time and in such manner as 
the Secretary may provide. 
‘‘(5) TRANSITION RULE.—With respect to peri-
ods of presumptive eligibility beginning during the 
first 6 months to which this section applies, the Sec-
retary shall issue regulations or other guidance to 
establish procedures pursuant to which— 
‘‘(A) based on information known to the 
Secretary, including returns of tax for either of 
the last 2 taxable years ending before such 
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month, a parent or specified relative of a child 
is treated as automatically establishing a period 
of presumptive eligibility with respect to such 
child, and 
‘‘(B) the month for which such period be-
gins, the month by which the first annual re-
newal described in paragraph (2) must be com-
pleted, and any additional circumstances under 
which such period will terminate, are deter-
mined. 
‘‘(d) DETERMINATION OF REFERENCE MONTH AND 
REFERENCE TAXABLE YEAR.—For purposes of this sec-
tion— 
‘‘(1) REFERENCE MONTH.—The term ‘reference 
month’ means, with respect to any calendar month 
in a period of presumptive eligibility with respect to 
a taxpayer, the most recent of— 
‘‘(A) in the case of a taxpayer who filed a 
return of tax for the last taxable year ending 
before such calendar month, the last month of 
such taxable year, 
‘‘(B) in the case of a taxpayer who filed a 
return of tax for the taxable year preceding the 
taxable year described in subparagraph (A), the 
last month of such preceding taxable year, and 
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‘‘(C) in the case of a taxpayer who other-
wise provides the information referred to in 
subsection (c)(1)(A), the month with respect to 
which such information is provided. 
‘‘(2) REFERENCE TAXABLE YEAR.—The term 
‘reference taxable year’ means, with respect to any 
calendar month in a period of presumptive eligibility 
with respect to a taxpayer— 
‘‘(A) if the reference month with respect to 
such calendar month is determined under sub-
paragraph (A) or (B) of paragraph (1), the tax-
able year referred to in such subparagraph, re-
spectively, and 
‘‘(B) if the reference month with respect to 
such calendar month is determined under para-
graph (1)(C), the last taxable year ending be-
fore such reference month. 
‘‘(e) METHODS OF PROVIDING INFORMATION TO ES-
TABLISH A PERIOD OF PRESUMPTIVE ELIGIBILITY.— 
‘‘(1) IN GENERAL.—The Secretary shall ensure 
the information described in subsection (c)(1)(A) 
may be provided on the return of tax for the taxable 
year ending before the calendar year which includes 
the month for which such period would begin, 
through the on-line portal described in paragraph 
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(2), or in such other manner as the Secretary may 
provide. 
‘‘(2) ON-LINE
INFORMATION
PORTAL.—The 
Secretary shall establish an on-line portal (available 
in multiple languages) which allows taxpayers to— 
‘‘(A) subject to such restrictions as the 
Secretary may provide, elect to begin or cease 
receiving payments under this section, and 
‘‘(B) provide the information described in 
subsection (c)(1)(A). 
‘‘(f) RESOLUTION OF COMPETING CLAIMS OF PRE-
SUMPTIVE
ELIGIBILITY
WITH
RESPECT
TO
SAME 
CHILD.— 
‘‘(1) IN GENERAL.—If there is a period of pre-
sumptive eligibility with respect to any taxpayer and 
child (hereafter referred to as the ‘original claim’), 
a period of presumptive eligibility would (without re-
gard to this subsection) be established with respect 
to another taxpayer and such child (hereafter re-
ferred to as the ‘challenge claim’), and the period of 
such challenge claim would overlap with the period 
of such original claim— 
‘‘(A) such challenge claim shall not be 
taken into account under this section unless the 
reference month with respect to which the chal-
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lenge claim would be established is at least as 
recent as the reference month with respect to 
which the original claim is established, 
‘‘(B) such challenge claim shall not begin 
before the original claim is terminated, and 
‘‘(C) the Secretary shall establish proce-
dures under which the Secretary expeditiously 
adjudicates such claims on the basis of the 
most recent feasible reference month. 
‘‘(2) PROVISIONS
RELATED
TO
ADJUDICA-
TION.— 
‘‘(A) CHALLENGE CLAIM MUST RELATE TO 
AT
LEAST
MONTHS
PROSPECTIVELY.—The 
procedures established under paragraph (1)(C) 
shall require that the taxpayer establishing the 
challenge claim express a reasonable expectation 
and intent that such taxpayer would be allowed 
a monthly childhood education allowance under 
section 24A(b) (determined without regard to 
section 24A(c)(7)) for at least the first 2 
months following the reference month referred 
to in paragraph (1)(C). 
‘‘(B) EXPEDITED
PROCESS; APPEALS.— 
The procedures established under paragraph 
(1)(C) shall include— 
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‘‘(i) an expedited process for tax-
payers who meet such requirements as the 
Secretary may establish for such expedited 
process, and 
‘‘(ii) procedures for adjudicating an 
appeal of an adverse decision. 
‘‘(C) INFORMATION RECEIPT AND COORDI-
NATION.—For purposes of obtaining informa-
tion relevant to any adjudication under this 
paragraph, the Secretary may enter into agree-
ments to receive information from, and other-
wise coordinate with— 
‘‘(i) Federal agencies (including the 
Social Security Administration), 
‘‘(ii) any State, local government, 
Tribal government, or possession of the 
United States, and 
‘‘(iii) any other individual or entity 
that the Secretary determines to be appro-
priate for such purposes. 
‘‘(D) ADJUDICATION NOT TREATED AS AS-
SESSMENT.—Any adjudication under this para-
graph shall not be treated as an assessment de-
scribed in section 6201. 
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‘‘(E) ADJUDICATION NOT TREATED AS IN-
SPECTION
OF
TAXPAYER’S
BOOKS
OF
AC-
COUNT.—The inspection of a taxpayer’s books 
of account in connection with any adjudication 
under this paragraph shall not be treated as an 
examination or inspection of a taxpayer’s books 
of account for purposes of section 7605(b). 
‘‘(3) RETROACTIVE PAYMENTS RELATED TO AD-
JUDICATION.— 
‘‘(A) DELAY IN ESTABLISHMENT OF CHAL-
LENGE CLAIM.—If the challenge claim is estab-
lished pursuant to the procedures established 
under paragraph (1)(C), the Secretary shall 
make a one-time payment to the taxpayer with 
respect to such claim equal to the aggregate 
amount of increases in the monthly advance 
childhood education payments which would have 
been made to such taxpayer if such challenge 
claim had been allowed to take effect without 
regard to this subsection. Any payment under 
this subparagraph shall be in addition to any 
payment made under subsection (g). 
‘‘(B) TERMINATION AND REINSTATEMENT 
OF ORIGINAL CLAIM.—If, pursuant to the pro-
cedures established under paragraph (1)(C), the 
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original claim is terminated under subsection 
(c)(1)(B)(i) and a new period of presumptive 
eligibility is subsequently established pursuant 
to such procedures with respect to the same 
taxpayer and child as for such original claim, 
the Secretary shall make a one-time payment to 
the taxpayer with respect to such claim equal to 
the aggregate amount of increases in the 
monthly advance childhood education payments 
which would have been made to such taxpayer 
if such original claim had never been termi-
nated. 
‘‘(g) RULES RELATED
TO GRACE PERIODS
AND 
HARDSHIPS.— 
‘‘(1) AUTOMATIC GRACE PERIOD.— 
‘‘(A) IN GENERAL.—If a taxpayer estab-
lishes a period of presumptive eligibility with re-
spect to any child, elects the application of this 
paragraph, and demonstrates to the satisfaction 
of the Secretary that such taxpayer would be al-
lowed a monthly childhood education allowance 
under section 24A(b) (determined without re-
gard to section 24A(c)(7)) for one or more of 
the 3 months immediately preceding the first 
month of such period, the Secretary shall make 
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a one-time payment to the taxpayer equal to the 
aggregate amount of increases in the monthly 
advance childhood education payments which 
would have been made to such taxpayer if such 
months were part of such period. The preceding 
sentence shall not apply to the extent that the 
Secretary determines that the failure to estab-
lish the period of presumptive eligibility with re-
spect to such child for any such month was due 
to fraud or reckless or intentional disregard of 
rules and regulations. 
‘‘(B) 
LIMITATION.—Subparagraph 
(A) 
shall not apply with respect to any taxpayer 
more than once during any 36-month period. 
‘‘(2) HARDSHIP.—If a taxpayer establishes a 
period of presumptive eligibility with respect to any 
child, elects the application of this paragraph (and 
does not elect the application of paragraph (1) with 
respect to the establishment of such period), dem-
onstrates to the satisfaction of the Secretary that 
such taxpayer would be allowed a monthly childhood 
education allowance under section 24A(b) (deter-
mined without regard to section 24A(c)(7)) for one 
or more of the 6 months immediately preceding the 
first month of such period, and the Secretary deter-
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mines that the failure to establish the period of pre-
sumptive eligibility with respect to such child for 
such months was due to domestic violence, serious 
illness, natural disaster, or any other hardship, the 
Secretary shall make a one-time payment to the tax-
payer equal to the aggregate amount of increases in 
the monthly advance childhood education payments 
which would have been made to such taxpayer if 
such months were part of such period. 
‘‘(3) COORDINATION WITH RETROACTIVE PAY-
MENT
FOR
DELAY
IN
ESTABLISHMENT
OF
CHAL-
LENGE CLAIM.—For purposes of applying paragraph 
(1) or (2) with respect to any challenge claim to 
which subsection (f)(3)(A) applies, the period of pre-
sumptive eligibility shall be treated as including the 
period for which payment is made under such sub-
section. 
‘‘(h) PROVISIONS RELATED TO FORM, MANNER, AND 
TREATMENT OF PAYMENTS.— 
‘‘(1) APPLICATION OF ELECTRONIC FUNDS PAY-
MENT REQUIREMENT.—The payments made by the 
Secretary under subsection (a) shall be made by 
electronic funds transfer to the same extent and in 
the same manner as if such payments were Federal 
payments not made under this title. 
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‘‘(2) 
DELIVERY
OF
PAYMENTS.—Notwith-
standing any other provision of law, the Secretary 
may certify and disburse refunds payable under this 
section electronically to— 
‘‘(A) any account to which the payee au-
thorized, on or after January 1, 2025, the deliv-
ery of a refund of taxes under this title or of 
a Federal payment (as defined in section 3332 
of title 31, United States Code), 
‘‘(B) any account belonging to a payee 
from which that individual, on or after January 
1, 2025, made a payment of taxes under this 
title, or 
‘‘(C) any Treasury-sponsored account (as 
defined in section 208.2 of title 31, Code of 
Federal Regulations). 
‘‘(3) WAIVER
OF
CERTAIN
RULES.—Notwith-
standing section 3325 of title 31, United States 
Code, or any other provision of law, with respect to 
any payment of a refund under this section, a dis-
bursing official in the executive branch of the United 
States Government may modify payment information 
received from an officer or employee described in 
section 3325(a)(1)(B) of such title for the purpose 
of facilitating the accurate and efficient delivery of 
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such payment. Except in cases of fraud or reckless 
neglect, no liability under section 3325, 3527, 3528, 
or 3529 of title 31, United States Code, shall be im-
posed with respect to payments made under this 
paragraph. 
‘‘(4) EXCEPTION
FROM
REDUCTION
OR
OFF-
SET.—Any applicable payment (as defined in para-
graph (5)(E)(iii)) shall not be— 
‘‘(A) subject to reduction or offset pursu-
ant to section 3716 or 3720A of title 31, 
United States Code, 
‘‘(B) subject to reduction or offset pursu-
ant to subsection (c), (d), (e), or (f) of section 
6402, or 
‘‘(C) reduced or offset by other assessed 
Federal taxes that would otherwise be subject 
to levy or collection. 
‘‘(5) ASSIGNMENT OF BENEFITS.— 
‘‘(A) IN GENERAL.—The right of any per-
son to any applicable payment shall not be 
transferable or assignable, at law or in equity, 
and no applicable payment shall be subject to, 
execution, levy, attachment, garnishment, or 
other legal process, or the operation of any 
bankruptcy or insolvency law. 
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‘‘(B) ENCODING
OF
PAYMENTS.—In the 
case of an applicable payment described in sub-
paragraph (E)(iii)(I) that is paid electronically 
by direct deposit through the Automated Clear-
ing House (ACH) network, the Secretary (or 
the Secretary’s delegate) shall— 
‘‘(i) issue the payment using a unique 
identifier that is reasonably sufficient to 
allow a financial institution to identify the 
payment as an applicable payment, and 
‘‘(ii) further encode the payment pur-
suant to the same specifications as re-
quired for a benefit payment defined in 
section 212.3 of title 31, Code of Federal 
Regulations. 
‘‘(C) GARNISHMENT.— 
‘‘(i) ENCODED
PAYMENTS.—In the 
case of a garnishment order that applies to 
an account that has received an applicable 
payment that is encoded as provided in 
subparagraph (B), a financial institution 
shall follow the requirements and proce-
dures set forth in part 212 of title 31, 
Code of Federal Regulations, except— 
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‘‘(I) 
notwithstanding 
section 
212.4 of title 31, Code of Federal 
Regulations (and except as provided 
in subclause (II)), a financial institu-
tion shall not fail to follow the proce-
dures of sections 212.5 and 212.6 of 
such title with respect to a garnish-
ment order merely because such order 
has attached, or includes, a notice of 
right to garnish Federal benefits 
issued by a State child support en-
forcement agency, and 
‘‘(II) a financial institution shall 
not, with regard to any applicable 
payment, be required to provide the 
notice referenced in sections 212.6 
and 212.7 of title 31, Code of Federal 
Regulations. 
‘‘(ii) OTHER PAYMENTS.—In the case 
of a garnishment order (other than an 
order that has been served by the United 
States) that has been received by a finan-
cial institution and that applies to an ac-
count into which an applicable payment 
that has not been encoded as provided in 
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subparagraph (B) has been deposited elec-
tronically on any date during the lookback 
period or into which an applicable payment 
that has been deposited by check on any 
date in the lookback period, the financial 
institution, upon the request of the account 
holder, shall treat the amount of the funds 
in the account at the time of the request, 
up to the amount of the applicable pay-
ment (in addition to any amounts other-
wise protected under part 212 of title 31, 
Code of Federal Regulations), as exempt 
from a garnishment order without requir-
ing the consent of the party serving the 
garnishment order or the judgment cred-
itor. 
‘‘(iii) LIABILITY.—A financial institu-
tion that acts in good faith in reliance on 
clause (i) or (ii) shall not be subject to li-
ability or regulatory action under any Fed-
eral or State law, regulation, court or other 
order, or regulatory interpretation for ac-
tions concerning any applicable payments. 
‘‘(D) NO
RECLAMATION
RIGHTS.—This 
paragraph shall not alter the status of applica-
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ble payments as tax refunds or other nonbenefit 
payments for purpose of any reclamation rights 
of the Department of the Treasury or the Inter-
nal Revenue Service as per part 210 of title 31, 
Code of Federal Regulations. 
‘‘(E) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) ACCOUNT
HOLDER.—The term 
‘account holder’ means a natural person 
whose name appears in a financial institu-
tion’s records as the direct or beneficial 
owner of an account. 
‘‘(ii) ACCOUNT
REVIEW.—The term 
‘account review’ means the process of ex-
amining deposits in an account to deter-
mine if an applicable payment has been de-
posited into the account during the 
lookback period. The financial institution 
shall perform the account review following 
the procedures outlined in section 212.5 of 
title 31, Code of Federal Regulations and 
in accordance with the requirements of sec-
tion 212.6 of title 31, Code of Federal 
Regulations. 
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‘‘(iii) APPLICABLE
PAYMENT.—The 
term ‘applicable payment’ means— 
‘‘(I) any payment made to an in-
dividual under this section (other than 
any payment made pursuant to para-
graph (6)), and 
‘‘(II) any advance payment made 
by a possession of the United States 
with a mirror code tax system (as de-
fined in section 24A(h)) pursuant to 
an election under paragraph (6)(B) 
which corresponds to a payment de-
scribed in subclause (I). 
‘‘(iv) GARNISHMENT.—The term ‘gar-
nishment’ means execution, levy, attach-
ment, garnishment, or other legal process. 
‘‘(v) 
GARNISHMENT
ORDER.—The 
term ‘garnishment order’ means a writ, 
order, notice, summons, judgment, levy, or 
similar written instruction issued by a 
court, a State or State agency, a munici-
pality or municipal corporation, or a State 
child support enforcement agency, includ-
ing a lien arising by operation of law for 
overdue child support or an order to freeze 
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the assets in an account, to effect a gar-
nishment against a debtor. 
‘‘(vi) LOOKBACK PERIOD.—The term 
‘lookback period’ means the two-month pe-
riod that begins on the date preceding the 
date of account review and ends on the 
corresponding date of the month two 
months earlier, or on the last date of the 
month two months earlier if the cor-
responding date does not exist. 
‘‘(6) APPLICATION OF ADVANCE PAYMENTS IN 
THE POSSESSIONS OF THE UNITED STATES.— 
‘‘(A) PUERTO RICO.— 
‘‘(i) For application of monthly child-
hood education tax credit to residents of 
Puerto Rico, see section 24A(d). 
‘‘(ii) For application of monthly ad-
vance childhood education payments to 
residents of Puerto Rico, see subsection 
(b)(5). 
‘‘(B) MIRROR CODE POSSESSIONS.—In the 
case of any possession of the United States with 
a mirror code tax system (as defined in section 
24A(h)(1)(C)), this section shall not be treated 
as part of the income tax laws of the United 
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States for purposes of determining the income 
tax law of such possession unless such posses-
sion elects to have this section be so treated. 
‘‘(i) APPLICATION OF CERTAIN DEFINITIONS AND 
RULES APPLICABLE
TO MONTHLY CHILDHOOD EDU-
CATION TAX CREDIT.— 
‘‘(1) DEFINITIONS.—Except as otherwise pro-
vided in this section, terms used in this section 
which are also used in section 24A shall have the 
same respective meanings as when used in section 
24A. 
‘‘(2) TREATMENT
OF
CERTAIN
DEATHS.—A 
child shall not be taken into account in determining 
the monthly advance childhood education payment 
for any calendar month if the death of such child be-
fore the end of such month is known to the Sec-
retary as of the date on which the Secretary esti-
mates such payment. 
‘‘(3) IDENTIFICATION
REQUIREMENTS.—Rules 
similar to the rules which apply under section 
24A(e) shall apply for purposes of this section, ex-
cept that such rules shall apply with respect to the 
return of tax for the reference taxable year or, in the 
case of information provided through the on-line 
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portal or otherwise, with respect to the information 
so provided. 
‘‘(4) RESTRICTIONS ON TAXPAYERS WHO IM-
PROPERLY
CLAIMED
CREDIT
OR
IMPROPERLY
RE-
CEIVED MONTHLY ADVANCE CHILDHOOD EDUCATION 
PAYMENTS.—For restrictions on taxpayers who im-
properly claimed credit or improperly received 
monthly advance childhood education payments, see 
section 24A(f). 
‘‘(j) NOTICE OF PAYMENTS.— 
‘‘(1) IN GENERAL.—Not later than January 31 
of the calendar year following any calendar year dur-
ing which the Secretary makes one or more pay-
ments to any taxpayer under this section, the Sec-
retary shall provide such taxpayer with a written no-
tice which includes— 
‘‘(A) the taxpayer’s taxpayer identity (as 
defined in section 6103(b)(6)), 
‘‘(B) the aggregate amount of such pay-
ments made to such taxpayer during such cal-
endar year, and 
‘‘(C) such other information as the Sec-
retary determines appropriate. 
‘‘(2) CERTAIN PAYMENTS SUBJECT TO TREAT-
MENT AS EXCESS ADVANCE PAYMENTS.—In the case 
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of any payments made to a taxpayer which the Sec-
retary has determined are subject to treatment as 
excess advance payments, the notice provided under 
paragraph (1) to such taxpayer shall include the 
amount of such payments. 
‘‘(k) NOTIFICATION OF CERTAIN EVENTS.—With re-
spect to any taxpayer receiving monthly advance childhood 
education payments under this section with respect to any 
specified child, the Secretary shall, to the maximum extent 
practicable, provide reasonable advance notice of each of 
the following: 
‘‘(1) Any month with respect to which such 
monthly advance childhood education payment will 
increase (relative to the preceding month) by reason 
of an inflation adjustment under section 24A(b)(3). 
‘‘(2) Any month with respect to which such 
monthly advance childhood education payment will 
be reduced (relative to the preceding month) by rea-
son of such child ceasing to be a specified child by 
reason of attaining age 5. 
‘‘(3) Such other events as the Secretary deter-
mines appropriate. 
‘‘(l) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as the Secretary determines 
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necessary or appropriate to carry out the purposes of this 
section.’’. 
(c) DISCLOSURE OF INFORMATION RELATING TO AD-
VANCE PAYMENT OF MONTHLY CHILDHOOD EDUCATION 
TAX CREDIT.—Section 6103(e) of such Code is amended 
by adding at the end the following new paragraph: 
‘‘(12) DISCLOSURE OF INFORMATION RELATING 
TO
ADVANCE
PAYMENT
OF
MONTHLY
CHILDHOOD 
EDUCATION TAX CREDIT.— 
‘‘(A) JOINT FILERS.—In the case of any 
individual who is eligible for monthly advance 
childhood education payments under section 
7527B, if the reference taxable year (as defined 
in section 7527B(d)(2)) that the Secretary uses 
to calculate such payments is a year for which 
the individual filed an income tax return jointly 
with another individual, the Secretary may dis-
close to such individual any information which 
is relevant in determining the monthly advance 
childhood education payment under section 
7527B, and the individual’s eligibility for such 
payment, including information regarding any 
of the following: 
‘‘(i) The number of specified children. 
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‘‘(ii) The name and taxpayer identi-
fication number of specified children. 
‘‘(iii) Marital status. 
‘‘(iv) Household income. 
‘‘(v) Modified adjusted gross income. 
‘‘(vi) Principal place of abode. 
‘‘(vii) Such other information as the 
Secretary may provide. 
‘‘(B) COMPETING CLAIMANTS.—In the case 
of any adjudication under section 7527B(f), the 
Secretary may disclose return information pro-
vided by the individual with the original claim 
to the individual with the challenge claim, re-
turn information provided by the individual 
with the challenge claim to the individual with 
the original claim, and any other information 
considered by the Secretary in such adjudica-
tion to either or both such individuals. Such in-
formation shall be limited to the items specified 
in subparagraph (A) and the following: 
‘‘(i) Information received under any 
agreements or coordination the Secretary 
entered into with— 
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‘‘(I) any State, local government, 
Tribal government, or possession of 
the United States, or 
‘‘(II) any other individual or enti-
ty that the Secretary determines to be 
appropriate for purposes of adjudi-
cating claims under section 7527B(f). 
‘‘(ii) Information considered by the 
Secretary about where and with whom the 
specified child resided. 
‘‘(iii) Information considered by the 
Secretary about expenditures made by the 
claimants to the extent such payments re-
late to the original or challenge claim.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 26(b)(2) of such Code is amended 
by striking ‘‘and’’ at the end of subparagraph (Y), 
by striking the period at the end of subparagraph 
(Z) and inserting ‘‘, and’’, and by adding at the end 
the following new subparagraph: 
‘‘(AA) section 24A(g)(2) (relating to in-
crease in tax equal to excess advance payments 
in certain circumstances).’’. 
(2) Section 152(f)(6)(B)(ii) of such Code is 
amended to read as follows: 
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‘‘(ii) the credits under sections 24 and 
24A, and the payments under section 
7527B,’’. 
(3) Section 3402(f)(1)(C) of such Code is 
amended by inserting ‘‘or section 24A (determined 
after application of subsection (g) thereof)’’ after 
‘‘section 24 (determined after application of sub-
section (j) thereof)’’. 
(4) Section 6103(l)(13)(A)(v) of such Code is 
amended by inserting ‘‘or section 24A, as the case 
may be’’ after ‘‘section 24’’. 
(5) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘24A by reason of subsection 
(d) thereof,’’ after ‘‘24 by reason of subsections (d) 
and (i)(1) thereof,’’. 
(6) Section 6213(g)(2)(I) of such Code is 
amended by inserting ‘‘or section 24A (relating to 
monthly childhood education tax credit)’’ after ‘‘sec-
tion 24 (relating to child tax credit)’’. 
(7) Section 6213(g)(2)(L) of such Code is 
amended by inserting ‘‘24A,’’ after ‘‘24,’’. 
(8) Section 6213(g)(2)(P) of such Code is 
amended— 
(A) by inserting ‘‘or 24A(f)(2)’’ after ‘‘sec-
tion 24(g)(2)’’, 
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(2) ADVANCE PAYMENT OF MONTHLY CHILD-
HOOD
EDUCATION
TAX
CREDIT.—The amendment 
made by subsection (b) shall apply to— 
(A) calendar months beginning after the 
date of the enactment of this Act, and 
(B) in the case of section 7527B(g) of the 
Internal Revenue Code of 1986 (relating to 
grace periods and hardships), calendar months 
beginning after December 31, 2025. 
(3) 
DISCLOSURE
OF
INFORMATION.—The 
amendment made by subsection (c) shall take effect 
on the date of the enactment of this Act. 
Æ 
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