This bill amends the Internal Revenue Code of 1986 to establish a new refundable childhood education tax credit , providing eligible families with monthly advance payments to support early learning. The credit offers a monthly allowance of $667 per eligible child , which will be adjusted annually for inflation starting in 2026. This aims to help offset the costs associated with early childhood education. To qualify, a "specified child" must be between the ages of two and five (not yet attained age five), reside with the taxpayer for over half the month, and receive uncompensated care. The child must also be enrolled in an early childhood education program , broadly defined to include state-licensed prekindergarten programs. Eligibility further requires the child to be a U.S. citizen, national, or resident, or a legally adopted individual of a U.S. citizen or national taxpayer. The credit amount is subject to an income limitation , with the monthly allowance reduced for household incomes exceeding 300 percent of the federal poverty line for the family size. Household income includes the modified adjusted gross income of the taxpayer and other individuals determining family size. This ensures the credit is targeted towards families below certain income thresholds. A key feature is the provision for monthly advance payments of the credit, administered by the Secretary of the Treasury based on an estimated "period of presumptive eligibility." Taxpayers can manage these payments, including opting in or out and updating eligibility information, through an online portal . This system aims to provide consistent financial support throughout the year. At the end of the tax year, taxpayers must reconcile the advance payments received against their actual credit. If advance payments exceed the final credit, the excess may increase tax liability under specific circumstances, such as fraud, reckless disregard of rules, or significant changes in household income. This mechanism prevents overpayment and ensures accountability. The bill mandates identification requirements for both the taxpayer and the specified child, requiring valid taxpayer identification numbers. Taxpayers making fraudulent or reckless claims face disallowance periods of up to 120 months. Importantly, these monthly advance payments are protected from reduction, offset, execution, levy, attachment, garnishment, or bankruptcy proceedings, with financial institutions following specific handling procedures. The legislation also includes provisions for the credit's application in U.S. possessions , like mirror code territories, Puerto Rico, and American Samoa, ensuring their residents can benefit. Finally, the Secretary of the Treasury is tasked with issuing necessary regulations and guidance to implement the credit effectively, covering aspects like determining care from a taxpayer and coordinating the credit with advance payments for various taxpayer situations.