Bill · H.R. 9031· House(119-HR-9031)
Young Adult Tax Credit Act
- Introduced
- 5/26/2026
- Last activity
- 5/26/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Morgan McGarvey
- Cosponsors
- - 5 - 0
- Introduced
- In Committee
What this bill would do
H.R. 9031 establishes a new refundable tax credit called the Young Adult Tax Credit for individuals between the ages of 18 and 25. Under this bill, eligible young adults or their claiming taxpayers receive a monthly allowance of $500 per person. The bill sets up a program for monthly advance payments distributed through electronic funds transfer. It also requires the Treasury Secretary to create a multilingual, mobile-friendly online portal for managing these payments. Additionally, the legislation mandates an outreach campaign to inform the public and assist underrepresented populations in claiming the credit. The provisions within this bill take effect for taxable years and calendar months beginning after December 31, 2026.
Yes· 3 of 28
Would people in their twenties and thirties be better off under this?+9
The bill directly benefits individuals aged 18 to 25 by providing a refundable tax credit of $500 per month.
Would households on low incomes be better off under this?+8
Low-income households and individuals benefit substantially from the refundable tax credit and targeted outreach.
Is this likely to lift people out of poverty?+7
Providing $500 monthly to young adults directly helps reduce poverty among a demographic transitioning to financial independence.
The opposite· 3 of 4
Does this reduce what the federal government spends?-3
The legislation introduces a significant new ongoing entitlement program involving monthly disbursements and administrative costs.
Does this reduce what the federal government owes?-2
The creation of a new refundable tax credit and monthly advance payment program increases government spending and reduces revenue.
Does this make the government pay for what it commits to?-2
The bill creates new mandatory spending without offsetting revenue provisions.
Who it would affect, and how
Potential Positive Impacts for People
-
Section 2 creates the monthly young adult tax credit, providing $500 per month for citizens, nationals, or residents who are at least 18 and under 25 years old, which directly puts money into the pockets of young adults and families.
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Section 2 establishes a monthly advance payment program under section 7527B, allowing people to receive their financial support on a monthly basis rather than waiting for an annual tax refund.
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Section 2 protects advance payments from being reduced or offset by federal taxes, past-due debts, or general legal garnishments, ensuring that recipients actually keep the financial relief provided.
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Section 2 requires the creation of an online information portal that is mobile-friendly and available in multiple languages, making it easier for everyday people to manage their payments and eligibility.
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Section 3 directs the Treasury Secretary to conduct an outreach campaign prioritizing underrepresented populations who are less likely to file taxes or have bank accounts, helping vulnerable Americans access the benefits they are owed.
Potential Negative Impacts for People
-
Section 2 includes a recapture provision that increases a taxpayer's tax liability if they receive advance payments based on fraud, reckless or intentional disregard of rules, or specific administrative notices, which could result in unexpected tax burdens.
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Section 2 mandates that taxpayers must include correct identification numbers for themselves and their dependents by the filing deadline, meaning simple paperwork errors or missing numbers will completely deny them the credit.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Young Adults+9Good For Low Income Households+8Good For Middle Class Households+4Good For Students+4Good For African Americans+3Good For Hispanic Americans+3Good For Native Americans+3Good For Asian Americans+2Good For Immigrants+2Good For L G B T Q Community+2Good For Men+2Good For Middle Aged+2Good For People With Disabilities+2Good For Rural Residents+2Good For Urban Residents+2Good For Veterans+2Good For White Americans+2Good For Women+2
- Social Issues And Justice
- Improves Poverty Reduction+7Reduces Homelessness+3Improves Racial Equity+2
- Governance And Ideology
- Improves Government Transparency+3Increases Federal Power+3Improves Due Process+2
- Economy And Finance
- Reduces Middle Class Taxes+5Improves Consumer Protection+3Improves Economic Growth+3Reduces Government Spending-3Improves Fiscal Responsibility-2Reduces National Debt-2Reduces Inflation-1
- Education And Technology
- Improves College Affordability+2
- 5/26/2026
- Referred to the House Committee on Ways and Means.
- 5 Cosponsors added.
- Introduced in House
Greg CasarDemocrat · Texas
Robert GarciaDemocrat · California
Eleanor NortonDemocrat · District of Columbia
Rashida TlaibDemocrat · Michigan
Bonnie Watson ColemanDemocrat · New Jersey