Affordability tax credit

(a) In general Subpart C of part IV of subchapter A of chapter 1 is amended by inserting after section 36B the following new section: 36C. Affordability tax credit (a) In general In the case of any eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to $4,200 (twice such amount in the case of a joint return with respect to which both spouses are eligible individuals). (b) Income phaseout (1) In general The amount of the credit allowed by subsection (a) for any taxable year (determined without regard to this subsection) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as the taxpayer’s modified adjusted gross income bears to $100,000 (twice such amount in the case of a joint return). (2) Modified adjusted gross income For purposes of this subsection, the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. (c) Eligible individual For purposes of this section, the term eligible individual means any individual who— (1) is a citizen or national of the United States, and (2) is not a dependent (as defined in section 152) of another taxpayer.. (b) Conforming amendments (1) Section 6211(b)(4)(A) is amended by inserting 36C, after 36B,. (2) Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36C, after 36B,. (3) The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. Affordability tax credit.. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2026.