Covid-era EITC improvements restored and made permanent

(a) Decrease in minimum age for credit; elimination of maximum age for credit Section 32(c)(1) of the Internal Revenue Code of 1986 is amended— (1) in paragraph (A)(ii)(II), by striking age 25 but not attained age 65 and inserting the applicable minimum age, and (2) by adding at the end the following new subparagraphs: (F) Applicable minimum age For purposes of this paragraph, the term applicable minimum age means— (i) except as otherwise provided in this paragraph, age 19, (ii) in the case of a specified student (other than a qualified former foster youth or a qualified homeless youth), age 24, and (iii) in the case of a qualified former foster youth or a qualified homeless youth, age 18. (G) Specified student For purposes of this paragraph, the term specified student means, with respect to any taxable year, an individual who is an eligible student (as defined in section 25A(b)(3)) during at least 5 calendar months during the taxable year. (H) Qualified former foster youth For purposes of this paragraph, the term qualified former foster youth means an individual who— (i) on or after the date that such individual attained age 14, was in foster care provided under the supervision or administration of an entity administering (or eligible to administer) a plan under part B or part E of title IV of the Social Security Act (without regard to whether Federal assistance was provided with respect to such child under such part E), and (ii) provides (in such manner as the Secretary may provide) consent for entities which administer a plan under part B or part E of title IV of the Social Security Act to disclose to the Secretary information related to the status of such individual as a qualified former foster youth. (I) Qualified homeless youth For purposes of this paragraph, the term qualified homeless youth means, with respect to any taxable year, an individual who certifies, in a manner as provided by the Secretary, that such individual is either an unaccompanied youth who is a homeless child or youth, or is unaccompanied, at risk of homelessness, and self-supporting.. (b) Increase in credit and phaseout percentages The table contained in section 32(b)(1) of such Code is amended by striking 7.65 and inserting 15.3 each place it appears. (c) Increase in earned income and phaseout amounts (1) In general The table contained in section 32(b)(2)(A) of such Code is amended— (A) by striking $4,220 and inserting $9,820, and (B) by striking $5,280 and inserting $11,610. (2) Inflation adjustment Section 32(j)(1)(B)(i) of such Code is amended by striking calendar year 1995 and inserting calendar year 2020. (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.