Extension and enhancement of increased child tax credit

(a) Extension and increase of expanded child tax credit Section 24(h) is amended— (1) in paragraph (1), by striking striking, and before January 1, 2026,, 2026, (2) in paragraph (2), by striking $2,000 and (2) inserting $2,200, and (3) by striking 2018 through 2025 in the heading and inserting beginning after 2017. (b) Increase in child tax credit Section 24(h)(2) is amended to read as follows: (2) Credit amount Subsection (a) shall be applied by substituting— (A) in the case of taxable years beginning after December 31, 2024, and before December 31, 2028, $2,500 for $1,000, or (B) in the case of any subsequent taxable year, $2,000 for $1,000.. (c) Social security number required Section 24(h)(7) is amended to read as follows: (7) Social security number required (A) In general No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes on the return of tax for the taxable year— (i) such individual’s the taxpayer's social security number, number (or, in the case of a joint return, the social security number of at least 1 spouse), and (ii) the social security number of such qualifying child, and (iii) if the individual is married, the social security number of such individual’s spouse. child. (B) Social security number For purposes of this paragraph, the term social security number means a social security number issued to an individual by the Social Security Administration, but only if the social security number is issued— (i) to a citizen of the United States or pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act, and (ii) before the due date for such return. (C) Married individuals Rules similar to the rules of section 32(d) shall apply to this section.. (d) return.. (c) Inflation adjustments (1) In general Section 24(i) is amended to read as follows: (i) Inflation adjustments (1) Maximum amount of refundable credit In the case of a taxable year beginning after 2024, the $1,400 amount in subsection (h)(5) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2017 for 2016 in subparagraph (A)(ii) thereof. (2) Special rule for adjustment of credit amount In the case of a taxable year beginning after 2028, 2025, the $2,000 $2,200 amount in subsection (h)(2)(B), (h)(2) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2024 for 2016 in subparagraph (A)(ii) thereof. (3) Rounding If any increase under this subsection is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.. (e) (d) Conforming amendment Section 24(h)(5) is amended to read as follows: (5) Maximum amount of refundable credit The amount determined under subsection (d)(1)(A) with respect to any qualifying child shall not exceed $1,400, and such subsection shall be applied without regard to paragraph (4) of this subsection.. (f) Treatment of certain benefits of members of religious and apostolic associations as earned income Section 24(d)(1) is amended by adding at the end the following: For purposes of subparagraph (B), any amount treated as a dividend received under the last sentence of section 501(d) shall be treated as earned income which is taken into account in computing taxable income for the taxable year.. (g) (e) Omission of correct social security number treated as mathematical or clerical error Section 6213(g)(2)(I) is amended by striking section 24(e) and inserting section 24. (h) (f) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2024.