Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB1372 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 1372
5	5	To amend the Internal Revenue Code of 1986 to expand, and make permanent
6	6	certain modifications of, the earned income credit.
7	7	IN THE SENATE OF THE UNITED STATES
8	8	APRIL9, 2025
9	9	Ms. C
10	10	ORTEZMASTO(for herself, Mr. BENNET, Ms. ALSOBROOKS, Ms. BALD-
11	11	WIN, Mr. BLUMENTHAL, Ms. BLUNTROCHESTER, Mr. BOOKER, Ms.
12	12	C
13	13	ANTWELL, Mr. COONS, Ms. DUCKWORTH, Mr. DURBIN, Mr.
14	14	F
15	15	ETTERMAN, Mr. GALLEGO, Mrs. GILLIBRAND, Mr. HEINRICH, Mr.
16	16	H
17	17	ICKENLOOPER, Ms. HIRONO, Mr. KAINE, Mr. KELLY, Mr. KIM, Mr.
18	18	K
19	19	ING, Ms. KLOBUCHAR, Mr. LUJA´N, Mr. MARKEY, Mr. MERKLEY, Mr.
20	20	M
21	21	URPHY, Mrs. MURRAY, Mr. PADILLA, Mr. PETERS, Mr. REED, Ms.
22	22	R
23	23	OSEN, Mr. SANDERS, Mr. SCHATZ, Mr. SCHIFF, Mr. SCHUMER, Mrs.
24	24	S
25	25	HAHEEN, Ms. SLOTKIN, Ms. SMITH, Mr. VANHOLLEN, Mr. WARNER,
26	26	Mr. W
27	27	ARNOCK, Ms. WARREN, Mr. WELCH, Mr. WHITEHOUSE, and Mr.
28	28	W
29	29	YDEN) introduced the following bill; which was read twice and referred
30	30	to the Committee on Finance
31	31	A BILL
32	32	To amend the Internal Revenue Code of 1986 to expand,
33	33	and make permanent certain modifications of, the earned
34	34	income credit.
35	35	Be it enacted by the Senate and House of Representa-1
36	36	tives of the United States of America in Congress assembled, 2
37	37	SECTION 1. SHORT TITLE. 3
38	38	This Act may be cited as the ‘‘Tax Cut for Workers 4
39	39	Act of 2025’’. 5
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42	42	•S 1372 IS
43	43	SEC. 2. PERMANENT EXTENSION OF EARNED INCOME 1
44	44	CREDIT RULES FOR INDIVIDUALS WITHOUT 2
45	45	QUALIFYING CHILDREN. 3
46	46	(a) D
47	47	ECREASE INMINIMUMAGE FORCREDIT.— 4
48	48	(1) I
49	49	N GENERAL.—Subclause (II) of section 5
50	50	32(c)(1)(A)(ii) of the Internal Revenue Code of 6
51	51	1986 is amended by striking ‘‘age 25’’ and inserting 7
52	52	‘‘the applicable minimum age’’. 8
53	53	(2) A
54	54	PPLICABLE MINIMUM AGE .—Paragraph 9
55	55	(1) of section 32(c) of such Code is amended by add-10
56	56	ing at the end the following new subparagraph: 11
57	57	‘‘(F) A
58	58	PPLICABLE MINIMUM AGE .—For 12
59	59	purposes of this paragraph— 13
60	60	‘‘(i) I
61	61	N GENERAL.—The term ‘applica-14
62	62	ble minimum age’ means— 15
63	63	‘‘(I) except as otherwise provided 16
64	64	in this clause, age 19, 17
65	65	‘‘(II) in the case of a student (as 18
66	66	defined in section 152(f)(2)), other 19
67	67	than a qualified former foster youth 20
68	68	or a qualified homeless youth, age 24, 21
69	69	and 22
70	70	‘‘(III) in the case of a qualified 23
71	71	former foster youth or a qualified 24
72	72	homeless youth, age 18. 25
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75	75	•S 1372 IS
76	76	‘‘(ii) QUALIFIED FORMER FOSTER 1
77	77	YOUTH.—For purposes of this subpara-2
78	78	graph, the term ‘qualified former foster 3
79	79	youth’ means an individual who— 4
80	80	‘‘(I) on or after the date that 5
81	81	such individual attained age 14, was 6
82	82	in foster care provided under the su-7
83	83	pervision or administration of an enti-8
84	84	ty administering (or eligible to admin-9
85	85	ister) a plan under part B or part E 10
86	86	of title IV of the Social Security Act 11
87	87	(without regard to whether Federal 12
88	88	assistance was provided with respect 13
89	89	to such child under such part E), and 14
90	90	‘‘(II) provides (in such manner 15
91	91	as the Secretary may provide) consent 16
92	92	for entities which administer a plan 17
93	93	under part B or part E of title IV of 18
94	94	the Social Security Act to disclose to 19
95	95	the Secretary information related to 20
96	96	the status of such individual as a 21
97	97	qualified former foster youth. 22
98	98	‘‘(iii) Q
99	99	UALIFIED HOMELESS 23
100	100	YOUTH.—For purposes of this subpara-24
101	101	graph, the term ‘qualified homeless youth’ 25
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104	104	•S 1372 IS
105	105	means, with respect to any taxable year, 1
106	106	an individual who certifies, in a manner as 2
107	107	provided by the Secretary, that such indi-3
108	108	vidual is either an unaccompanied youth 4
109	109	who is a homeless child or youth, or is un-5
110	110	accompanied, at risk of homelessness, and 6
111	111	self-supporting.’’. 7
112	112	(b) E
113	113	LIMINATION OFMAXIMUMAGE FORCREDIT.— 8
114	114	Subclause (II) of section 32(c)(1)(A)(ii) of the Internal 9
115	115	Revenue Code of 1986 is amended by striking ‘‘but not 10
116	116	attained age 65’’. 11
117	117	(c) I
118	118	NCREASE INCREDIT ANDPHASEOUTPERCENT-12
119	119	AGES.—The table contained in paragraph (1) of section 13
120	120	32(b) of the Internal Revenue Code of 1986 is amended 14
121	121	by striking ‘‘7.65’’ each place it appears and inserting 15
122	122	‘‘15.3’’. 16
123	123	(d) I
124	124	NCREASE INEARNEDINCOME ANDPHASEOUT 17
125	125	A
126	126	MOUNTS.—The table contained in subparagraph (A) of 18
127	127	section 32(b)(2) of the Internal Revenue Code of 1986 is 19
128	128	amended— 20
129	129	(1) by striking ‘‘$4,220’’ and inserting 21
130	130	‘‘$9,820’’, and 22
131	131	(2) by striking ‘‘$5,280’’ and inserting 23
132	132	‘‘$11,610’’. 24
133	133	(e) I
134	134	NFLATIONADJUSTMENTS.— 25
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137	137	•S 1372 IS
138	138	(1) IN GENERAL.—Paragraph (1) of section 1
139	139	32(j) of the Internal Revenue Code of 1986 is 2
140	140	amended to read as follows: 3
141	141	‘‘(1) I
142	142	N GENERAL.—In the case of any taxable 4
143	143	year beginning after— 5
144	144	‘‘(A) 2021, in the case of the dollar 6
145	145	amount in subsection (i)(1), 7
146	146	‘‘(B) 2026, in the case of the dollar 8
147	147	amounts in the third row of the table in sub-9
148	148	section (b)(2)(A), and 10
149	149	‘‘(C) 2015, in any other case, 11
150	150	each of the dollar amounts in subsections (b)(2) and 12
151	151	(i)(1) shall be increased by an amount equal to the 13
152	152	inflation amount.’’. 14
153	153	(2) I
154	154	NFLATION AMOUNT.—Subsection (j) of sec-15
155	155	tion 32 of such Code is amended by adding at the 16
156	156	end the following new paragraph: 17
157	157	‘‘(3) I
158	158	NFLATION AMOUNT .—For purposes of 18
159	159	paragraph (1), the inflation amount with respect to 19
160	160	any dollar amount for any taxable year is the 20
161	161	amount equal to— 21
162	162	‘‘(A) such dollar amount, multiplied by 22
163	163	‘‘(B) the percentage (if any) by which— 23
164	164	‘‘(i) the CPI (as defined in section 24
165	165	1(f)(4)) for the calendar year preceding 25
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168	168	•S 1372 IS
169	169	the year in which the taxable year begins, 1
170	170	exceeds 2
171	171	‘‘(ii) the CPI (as so defined) for— 3
172	172	‘‘(I) in the case of amounts in 4
173	173	the third row of the table in sub-5
174	174	section (b)(2)(A), 2025, 6
175	175	‘‘(II) in the case of any other 7
176	176	amount in subsection (b)(2)(A), 1995, 8
177	177	‘‘(III) in the case of the $5,000 9
178	178	amount in subsection (b)(2)(B), 2008, 10
179	179	and 11
180	180	‘‘(IV) in the case of the $10,000 12
181	181	amount in subsection (i)(1), 2020.’’. 13
182	182	(f) C
183	183	ONFORMINGAMENDMENT.—Section 32 of the 14
184	184	Internal Revenue Code of 1986 is amended by striking 15
185	185	subsection (n). 16
186	186	(g) E
187	187	FFECTIVEDATE.—The amendments made by 17
188	188	this section shall apply to taxable years beginning after 18
189	189	December 31, 2025. 19
190	190	SEC. 3. APPLICATION OF EARNED INCOME CREDIT TO POS-20
191	191	SESSIONS OF THE UNITED STATES. 21
192	192	(a) P
193	193	UERTORICO.—Subparagraph (B) of section 22
194	194	7530(a)(1) of the Internal Revenue Code of 1986 is 23
195	195	amended by striking ‘‘in the case of calendar years 2021 24
196	196	through 2025,’’. 25
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199	199	•S 1372 IS
200	200	(b) POSSESSIONSWITHMIRRORCODETAXSYS-1
201	201	TEMS.—Subparagraph (B) of section 7530(b)(1) of the 2
202	202	Internal Revenue Code of 1986 is amended by striking ‘‘in 3
203	203	the case of calendar years 2021 through 2025,’’. 4
204	204	(c) A
205	205	MERICANSAMOA.—Subparagraph (B) of section 5
206	206	7530(c)(1) of the Internal Revenue Code of 1986 is 6
207	207	amended by striking ‘‘in the case of calendar years 2021 7
208	208	through 2025,’’. 8
209	209	SEC. 4. ELECTION TO USE PRIOR YEAR EARNED INCOME. 9
210	210	(a) I
211	211	NGENERAL.—Paragraph (2) of section 32(c) of 10
212	212	the Internal Revenue Code of 1986 is amended by adding 11
213	213	at the end the following new subparagraph: 12
214	214	‘‘(C) E
215	215	LECTION TO USE PRIOR YEAR 13
216	216	EARNED INCOME.— 14
217	217	‘‘(i) I
218	218	N GENERAL.—If the earned in-15
219	219	come of the taxpayer for any taxable year 16
220	220	is less than the earned income of the tax-17
221	221	payer for the preceding taxable year, the 18
222	222	credit allowed under subsection (a) may, at 19
223	223	the election of the taxpayer, be determined 20
224	224	by substituting— 21
225	225	‘‘(I) such earned income for such 22
226	226	preceding taxable year, for 23
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229	229	•S 1372 IS
230	230	‘‘(II) such earned income for the 1
231	231	taxable year for which such credit is 2
232	232	being determined. 3
233	233	‘‘(ii) A
234	234	PPLICATION TO JOINT RE -4
235	235	TURNS.—For purposes of clause (i), in the 5
236	236	case of a joint return, the earned income 6
237	237	of the taxpayer for the preceding taxable 7
238	238	year shall be the sum of the earned income 8
239	239	of each spouse for such taxable year. 9
240	240	‘‘(iii) S
241	241	PECIAL RULES.— 10
242	242	‘‘(I) E
243	243	RRORS TREATED AS MATH -11
244	244	EMATICAL ERRORS.—For purposes of 12
245	245	section 6213, an incorrect use on a re-13
246	246	turn of earned income pursuant to 14
247	247	clause (i) shall be treated as a mathe-15
248	248	matical or clerical error. 16
249	249	‘‘(II) N
250	250	O EFFECT ON DETER -17
251	251	MINATION OF GROSS INCOME , ETC.— 18
252	252	Except as otherwise provided in this 19
253	253	subparagraph, this title shall be ap-20
254	254	plied without regard to any substi-21
255	255	tution under clause (i).’’. 22
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258	258	•S 1372 IS
259	259	(b) EFFECTIVEDATE.—The amendment made by 1
260	260	subsection (a) shall apply to taxable years beginning after 2
261	261	December 31, 2025. 3
262	262	Æ
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