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This bill amends the Internal Revenue Code to increase the earned income tax credit (EITC) for parents of young children under age 4. For taxpayers with one qualifying child under age 4, the credit percentage increases by 42.24 percentage points; for those with two or more such children, the credit percentage increases by 30.07 percentage points for each of the youngest three children under age 4. The bill also increases the phaseout percentage by 5 points per qualifying child under age 4, and allows taxpayers to elect to receive their refund in equal monthly installments throughout the year rather than as a lump sum.
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