Young Adult Tax Credit Act

This bill would create a new federal tax credit of $500 per month for each taxpayer or dependent who is at least 18 and under 25 and is a U.S. citizen, national, or resident. The amount would rise with inflation starting in 2028, and the credit would be refundable for people living in the United States or Puerto Rico for more than half of a month. The Treasury would make the credit available as monthly advance payments, set up an online portal for people to sign up, update information, or choose a yearly lump sum, and protect the payments from most debt offsets and garnishment. The Treasury would also run an outreach campaign, including direct mail to eligible people. The credit would apply starting with tax years and months beginning after December 31, 2026.

Full text and official record on Congress.gov

Sponsors

• Morgan McGarvey Democrat sponsor
• 5 cosponsors