Section 1 Short title
This Act may be cited as the “Working Parents Tax Relief Act of 2026”.
Working Parents Tax Relief Act of 2026
A BILL
To amend the Internal Revenue Code of 1986 to increase the amount of the earned income tax credit for parents of young children.
Sec. 2 Increase in earned income tax credit for parents of young children
In general— Section 32(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(5) Increase in percentages for parents of young children
“(A) Credit percentages
“(i) 1 child—In the case of an eligible individual with 1 qualifying child, the credit percentage determined under subsection (b)(1) shall be increased by 42.24 percentage points if such qualifying child has not attained age 4.
“(ii) 2 or more children—In the case of an eligible individual with 2 or more qualifying children, the credit percentage determined under subsection (b)(1) shall be increased by 30.07 percentage points for each of the youngest 3 qualifying children of such eligible individual that has not attained age 4.
“(B) Phaseout percentage—In the case of an eligible individual with 1 or more qualifying children, the phaseout percentage determined under subsection (b)(1) shall be increased by 5 percentage points for each of the youngest 3 qualifying children of such eligible individual that has not attained age 4.
“(C) Monthly payment—The Secretary shall establish a program allowing, at the election of the taxpayer, for making so much of any refund payment owed to a taxpayer by reason of operation of this paragraph in equal monthly increments divided among the remaining months in the taxable year of the taxpayer during which the amount of such refund is determined.”
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2025.