HR 3407 IH: MAGA Accounts Contribution Pilot Program

Introduction

The U.S. House of Representatives has introduced a bill (HR 3407 IH) that aims to create a pilot program for contributing to the MAGA accounts, also known as the “MAGA tax credit.” This program is part of the American Innovation and Competitiveness Act of 2024.

Key Provisions

MAGA Accounts Contribution Pilot Program: The bill creates a pilot program to encourage contributions to MAGA accounts, which are tax-advantaged savings plans for families with children under age 18.

The program will provide a tax credit of up to $500 per child, depending on the family’s income level and other factors.

The bill also establishes a new section in the Internal Revenue Code (IRC) to define the “MAGA account” and its benefits.

Eligibility Requirements

To be eligible for the tax credit, families must meet certain requirements:

Families must have a child under age 18.
The child must be a U.S. citizen or a resident alien.
The family’s income level and other factors will determine the amount of the tax credit.