Refundable tax credit for adult dependents

(a) In general Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 33 the following new section: 32A. Adult dependent credit (a) Allowance of credit In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to $700 for each qualifying dependent of the taxpayer. (b) Eligible individual The term eligible individual means any individual if— (1) such individual is not a dependent for whom a deduction is allowable under section 151 to another taxpayer for any taxable year beginning in the same calendar year as such taxable year, and (2) such individual is not a nonresident alien during such taxable year. (c) Qualifying dependent The term qualifying dependent means a dependent (as defined in section 152) who is over the age of 18. (d) Identification number requirement A qualifying dependent shall not be taken into account under subsection (a) unless the taxpayer includes the name, age, and TIN of the qualifying dependent on the return of tax for the taxable year. (e) Inflation adjustment (1) In general In the case of any taxable year beginning after 2025, the dollar amount in subsection (a) 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 calendar year 2024 for calendar year 2016 in subparagraph (A)(ii) thereof. (2) Rounding If any amount as adjusted under paragraph (1) is not a multiple of $0.01, such amount shall be rounded to the next lowest multiple of $0.01.. (b) Conforming amendment The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 32 the following new item: Sec. 32A. Adult dependent credit. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.