H.R. 905: EITC Modernization Act

119th Congress · introduced 2025-01-31 · Taxation · Latest: Referred to the House Committee on Ways and Means.

federal

Official title

EITC Modernization Act

Plain summary

EITC Modernization Act This bill expands eligibility for the earned income tax credit (EITC), provides a minimum EITC amount of $1,200 (subject to limitations), and allows an individual to receive the EITC as monthly payments. The bill also establishes a grant program for tax return preparation assistance for low-income individuals. Under the bill, EITC eligibility is expanded to include a student who meets certain requirements and an individual with a qualifying dependent, which includes a qualifying child, dependent who attains the age of 65 within the tax year and for whom the individual may claim a tax deduction for a personal exemption, and dependent or spouse who is physically or mentally incapable of caring for themselves and meets certain residency requirements. Further, for an individual who does not have a qualifying dependent, the bill lowers the EITC eligibility age to 18 years (from 25 years) and eliminates the maximum age limit. The bill allows an individual who meets certain requirements to receive the EITC in monthly payments and provides for a one-time increase in the first monthly payment. The bill also provides a new parent (through birth or adoption) an increase in their monthly EITC payments (subject to limitations). Finally, the bill establishes a grant program, which is similar to the existing Volunteer Income Tax Assistance program and provides funding for tax return preparation assistance for low-income taxpayers and members of underserved populations.

Congressional Research Service summary (Introduced in House), quoted unchanged (nonpartisan). Read the source.

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Official text

EITC Modernization Act

Source: Congressional Research Service summary (Introduced in House)

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Officials and money

Sponsor: Rep. Watson Coleman, Bonnie [D-NJ-12] · 17 cosponsors

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Words on this page, explained (2)

Bill: A proposed law. It becomes law only if it passes the legislature and is signed by the president or governor (or a veto is overridden).
Exemption: A rule that removes certain people, property or activities from a tax or requirement.

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Sources

Congressional Research Service summary (Introduced in House)
Congress.gov
Data: GovInfo BILLSTATUS bulk data (Library of Congress), BILLSTATUS-119hr905.xml <https://www.govinfo.gov/bulkdata/BILLSTATUS/119/hr>

Record fed-us-cong119-hr905 · catalog fed-us-congress-bills-cong119 · updated 2026-11-03 by psicol fed-bills