[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6634 Introduced in House (IH)]
<DOC>
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 Representatives of the
United States of America in Congress assembled,
SECTION 1. ESTABLISHMENT OF REFUNDABLE CHILDHOOD EDUCATION TAX CREDIT
WITH MONTHLY ADVANCE PAYMENTS.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 24 the following new section:
``SEC. 24A. MONTHLY CHILDHOOD EDUCATION TAX CREDIT.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year the sum of
the monthly childhood education allowances determined with respect to
the taxpayer under subsection (b) for each calendar month during such
taxable year.
``(b) Monthly Childhood Education Allowance.--
``(1) In general.--For purposes of this section, the term
`monthly childhood education allowance' 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 income.--
``(A) In general.--The dollar amount under
paragraph (1) with respect to any taxpayer for any
calendar month shall be reduced (but not below zero) by
an amount which bears the same ratio to such dollar
amount (determined without regard to this paragraph)
as--
``(i) the excess (if any) of--
``(I) the taxpayer's household
income for the taxable year which
includes such month, over
``(II) an amount equal to 300
percent of the poverty line for a
family of the size involved for such
taxable 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 limitation 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 taxable
year, plus
``(II) the aggregate modified
adjusted gross incomes of all other
individuals for such taxable year who--
``(aa) were taken into
account in determining the
taxpayer's family size under
clause (iii) for such taxable
year, and
``(bb) were required to
file a return of tax imposed by
section 1 for such taxable
year.
``(ii) Modified adjusted gross income.--The
term `modified adjusted gross income' means
adjusted gross income increased 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 number of
individuals for whom the taxpayer is allowed a
deduction under section 151 for such taxable
year.
``(iv) Poverty line.--The term `poverty
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--
``(i) the CPI (as defined in section
1(f)(4)) for the calendar year preceding the
calendar year in which such month begins,
exceeds
``(ii) the CPI (as so defined) for calendar
year 2024.
``(c) Specified Child.--For purposes of this section--
``(1) In general.--The term `specified child' means, with
respect to any taxpayer for any calendar 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
``(ii) if the taxpayer is a citizen or
national 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 program.--The term `early
childhood education program' 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 individual receives care
from the taxpayer (within the meaning of paragraph
(1)(C)) shall be determined on the basis of facts and
circumstances with respect to the following factors:
``(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 individual
resides.
``(iii) The provision or arrangement by the
taxpayer of, and transportation by the taxpayer
to, medical care at regular intervals 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 activities of the
individual.
``(v) Any other factor that the Secretary
determines to be appropriate to determine
whether the individual receives care from the
taxpayer.
``(B) Determination of whether care is
compensated.--For purposes of determining if care is
compensated within the meaning of paragraph (1)(C),
compensation from the Federal Government, a State or
local government, a Tribal government, or any
possession of the United States shall not be taken into
account.
``(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 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 paragraph)
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
(determined 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 individual
nor a specified child of any specified relative
of the individual (in both cases determined
without regard to this paragraph), the taxpayer
with the highest adjusted 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 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 during
such month, or
``(ii) if the child resides with both
parents 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--
``(i) such parent or specified relative
elects to have such individual not be treated
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 subparagraph) for the
taxable year which includes such month is
higher than the highest adjusted gross income
of any parent of the individual for any taxable
year which includes such month (determined
without regard to any parent 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), and
``(iii) in the case of a specified relative
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 subparagraph)
for the taxable year which includes such month
is higher than the highest adjusted gross
income of any parent and any specified relative
of the individual 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 adjusted gross income shown on the joint return
for the taxable year.
``(F) Parent.--Except as otherwise provided 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 subsection--
``(A) In general.--In the case of any individual's
temporary absence from such individual's principal
place of abode, each day composing the temporary
absence shall--
``(i) be treated as a day at such
individual'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 purposes 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 circumstances,
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.
``(7) Eligibility determined on basis of presumptive
eligibility.--
``(A) In general.--If a period of presumptive
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 eligibility, and
``(ii) such child shall not be treated as
the specified child of any other taxpayer with
respect to whom a period of presumptive
eligibility has not been established for any
such month.
``(B) Ability of credit claimants to establish
presumptive eligibility.--Nothing 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 not to receive monthly advance childhood
education 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 retroactive 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 treated as a period of
presumptive eligibility established under section
7527B(c) with respect to such taxpayer and child for
purposes of applying subparagraph (A).
``(E) Fraud and intentional disregard of rules or
regulations.--If the Secretary determines that the