II
119THCONGRESS
1
STSESSION S. 1372
To amend the Internal Revenue Code of 1986 to expand, and make permanent
certain modifications of, the earned income credit.
IN THE SENATE OF THE UNITED STATES
APRIL9, 2025
Ms. C
ORTEZMASTO(for herself, Mr. BENNET, Ms. ALSOBROOKS, Ms. BALD-
WIN, Mr. BLUMENTHAL, Ms. BLUNTROCHESTER, Mr. BOOKER, Ms.
C
ANTWELL, Mr. COONS, Ms. DUCKWORTH, Mr. DURBIN, Mr.
F
ETTERMAN, Mr. GALLEGO, Mrs. GILLIBRAND, Mr. HEINRICH, Mr.
H
ICKENLOOPER, Ms. HIRONO, Mr. KAINE, Mr. KELLY, Mr. KIM, Mr.
K
ING, Ms. KLOBUCHAR, Mr. LUJA´N, Mr. MARKEY, Mr. MERKLEY, Mr.
M
URPHY, Mrs. MURRAY, Mr. PADILLA, Mr. PETERS, Mr. REED, Ms.
R
OSEN, Mr. SANDERS, Mr. SCHATZ, Mr. SCHIFF, Mr. SCHUMER, Mrs.
S
HAHEEN, Ms. SLOTKIN, Ms. SMITH, Mr. VANHOLLEN, Mr. WARNER,
Mr. W
ARNOCK, Ms. WARREN, Mr. WELCH, Mr. WHITEHOUSE, and Mr.
W
YDEN) introduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to expand,
and make permanent certain modifications of, the earned
income credit.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Tax Cut for Workers 4
Act of 2025’’. 5
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•S 1372 IS
SEC. 2. PERMANENT EXTENSION OF EARNED INCOME 1
CREDIT RULES FOR INDIVIDUALS WITHOUT 2
QUALIFYING CHILDREN. 3
(a) D
ECREASE INMINIMUMAGE FORCREDIT.— 4
(1) I
N GENERAL.—Subclause (II) of section 5
32(c)(1)(A)(ii) of the Internal Revenue Code of 6
1986 is amended by striking ‘‘age 25’’ and inserting 7
‘‘the applicable minimum age’’. 8
(2) A
PPLICABLE MINIMUM AGE .—Paragraph 9
(1) of section 32(c) of such Code is amended by add-10
ing at the end the following new subparagraph: 11
‘‘(F) A
PPLICABLE MINIMUM AGE .—For 12
purposes of this paragraph— 13
‘‘(i) I
N GENERAL.—The term ‘applica-14
ble minimum age’ means— 15
‘‘(I) except as otherwise provided 16
in this clause, age 19, 17
‘‘(II) in the case of a student (as 18
defined in section 152(f)(2)), other 19
than a qualified former foster youth 20
or a qualified homeless youth, age 24, 21
and 22
‘‘(III) in the case of a qualified 23
former foster youth or a qualified 24
homeless youth, age 18. 25
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‘‘(ii) QUALIFIED FORMER FOSTER 1
YOUTH.—For purposes of this subpara-2
graph, the term ‘qualified former foster 3
youth’ means an individual who— 4
‘‘(I) on or after the date that 5
such individual attained age 14, was 6
in foster care provided under the su-7
pervision or administration of an enti-8
ty administering (or eligible to admin-9
ister) a plan under part B or part E 10
of title IV of the Social Security Act 11
(without regard to whether Federal 12
assistance was provided with respect 13
to such child under such part E), and 14
‘‘(II) provides (in such manner 15
as the Secretary may provide) consent 16
for entities which administer a plan 17
under part B or part E of title IV of 18
the Social Security Act to disclose to 19
the Secretary information related to 20
the status of such individual as a 21
qualified former foster youth. 22
‘‘(iii) Q
UALIFIED HOMELESS 23
YOUTH.—For purposes of this subpara-24
graph, the term ‘qualified homeless youth’ 25
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means, with respect to any taxable year, 1
an individual who certifies, in a manner as 2
provided by the Secretary, that such indi-3
vidual is either an unaccompanied youth 4
who is a homeless child or youth, or is un-5
accompanied, at risk of homelessness, and 6
self-supporting.’’. 7
(b) E
LIMINATION OFMAXIMUMAGE FORCREDIT.— 8
Subclause (II) of section 32(c)(1)(A)(ii) of the Internal 9
Revenue Code of 1986 is amended by striking ‘‘but not 10
attained age 65’’. 11
(c) I
NCREASE INCREDIT ANDPHASEOUTPERCENT-12
AGES.—The table contained in paragraph (1) of section 13
32(b) of the Internal Revenue Code of 1986 is amended 14
by striking ‘‘7.65’’ each place it appears and inserting 15
‘‘15.3’’. 16
(d) I
NCREASE INEARNEDINCOME ANDPHASEOUT 17
A
MOUNTS.—The table contained in subparagraph (A) of 18
section 32(b)(2) of the Internal Revenue Code of 1986 is 19
amended— 20
(1) by striking ‘‘$4,220’’ and inserting 21
‘‘$9,820’’, and 22
(2) by striking ‘‘$5,280’’ and inserting 23
‘‘$11,610’’. 24
(e) I
NFLATIONADJUSTMENTS.— 25
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•S 1372 IS
(1) IN GENERAL.—Paragraph (1) of section 1
32(j) of the Internal Revenue Code of 1986 is 2
amended to read as follows: 3
‘‘(1) I
N GENERAL.—In the case of any taxable 4
year beginning after— 5
‘‘(A) 2021, in the case of the dollar 6
amount in subsection (i)(1), 7
‘‘(B) 2026, in the case of the dollar 8
amounts in the third row of the table in sub-9
section (b)(2)(A), and 10
‘‘(C) 2015, in any other case, 11
each of the dollar amounts in subsections (b)(2) and 12
(i)(1) shall be increased by an amount equal to the 13
inflation amount.’’. 14
(2) I
NFLATION AMOUNT.—Subsection (j) of sec-15
tion 32 of such Code is amended by adding at the 16
end the following new paragraph: 17
‘‘(3) I
NFLATION AMOUNT .—For purposes of 18
paragraph (1), the inflation amount with respect to 19
any dollar amount for any taxable year is the 20
amount equal to— 21
‘‘(A) such dollar amount, multiplied by 22
‘‘(B) the percentage (if any) by which— 23
‘‘(i) the CPI (as defined in section 24
1(f)(4)) for the calendar year preceding 25
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the year in which the taxable year begins, 1
exceeds 2
‘‘(ii) the CPI (as so defined) for— 3
‘‘(I) in the case of amounts in 4
the third row of the table in sub-5
section (b)(2)(A), 2025, 6
‘‘(II) in the case of any other 7
amount in subsection (b)(2)(A), 1995, 8
‘‘(III) in the case of the $5,000 9
amount in subsection (b)(2)(B), 2008, 10
and 11
‘‘(IV) in the case of the $10,000 12
amount in subsection (i)(1), 2020.’’. 13
(f) C
ONFORMINGAMENDMENT.—Section 32 of the 14
Internal Revenue Code of 1986 is amended by striking 15
subsection (n). 16
(g) E
FFECTIVEDATE.—The amendments made by 17
this section shall apply to taxable years beginning after 18
December 31, 2025. 19
SEC. 3. APPLICATION OF EARNED INCOME CREDIT TO POS-20
SESSIONS OF THE UNITED STATES. 21
(a) P
UERTORICO.—Subparagraph (B) of section 22
7530(a)(1) of the Internal Revenue Code of 1986 is 23
amended by striking ‘‘in the case of calendar years 2021 24
through 2025,’’. 25
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(b) POSSESSIONSWITHMIRRORCODETAXSYS-1
TEMS.—Subparagraph (B) of section 7530(b)(1) of the 2
Internal Revenue Code of 1986 is amended by striking ‘‘in 3
the case of calendar years 2021 through 2025,’’. 4
(c) A
MERICANSAMOA.—Subparagraph (B) of section 5
7530(c)(1) of the Internal Revenue Code of 1986 is 6
amended by striking ‘‘in the case of calendar years 2021 7
through 2025,’’. 8
SEC. 4. ELECTION TO USE PRIOR YEAR EARNED INCOME. 9
(a) I
NGENERAL.—Paragraph (2) of section 32(c) of 10
the Internal Revenue Code of 1986 is amended by adding 11
at the end the following new subparagraph: 12
‘‘(C) E
LECTION TO USE PRIOR YEAR 13
EARNED INCOME.— 14
‘‘(i) I
N GENERAL.—If the earned in-15
come of the taxpayer for any taxable year 16
is less than the earned income of the tax-17
payer for the preceding taxable year, the 18
credit allowed under subsection (a) may, at 19
the election of the taxpayer, be determined 20
by substituting— 21
‘‘(I) such earned income for such 22
preceding taxable year, for 23
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‘‘(II) such earned income for the 1
taxable year for which such credit is 2
being determined. 3
‘‘(ii) A
PPLICATION TO JOINT RE -4
TURNS.—For purposes of clause (i), in the 5
case of a joint return, the earned income 6
of the taxpayer for the preceding taxable 7
year shall be the sum of the earned income 8
of each spouse for such taxable year. 9
‘‘(iii) S
PECIAL RULES.— 10
‘‘(I) E
RRORS TREATED AS MATH -11
EMATICAL ERRORS.—For purposes of 12
section 6213, an incorrect use on a re-13
turn of earned income pursuant to 14
clause (i) shall be treated as a mathe-15
matical or clerical error. 16
‘‘(II) N
O EFFECT ON DETER -17
MINATION OF GROSS INCOME , ETC.— 18
Except as otherwise provided in this 19
subparagraph, this title shall be ap-20
plied without regard to any substi-21
tution under clause (i).’’. 22
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(b) EFFECTIVEDATE.—The amendment made by 1
subsection (a) shall apply to taxable years beginning after 2
December 31, 2025. 3
Æ
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