The credit and its refundable part rise with prices
What the document says“In the case of a taxable year beginning after 2025, the $2,200 amount in subsection (h)(2) shall be increased by an amount equal to--”
The section rewrites section 24(i) of the Internal Revenue Code of 1986 so that from a taxable year beginning after 2024 the $1,400 refundable amount rises by a cost of living adjustment under section 1(f)(3) measured from 2017, and from a taxable year beginning after 2025 the $2,200 credit amount rises by the same kind of adjustment measured from 2024. An increase that is not a multiple of $100 is rounded down to the next lowest multiple of $100.
What the document actually says“In the case of a taxable year beginning after 2025, the $2,200 amount in subsection (h)(2) shall be increased by an amount equal to--”
From a tax year that begins after 2025 the $2,200 grows. The rise is worked out as set out below.
It follows a cost of living measure in the tax code. The refundable part grows in the same way. Any rise is rounded down to the nearest $100.
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