US SB1393

Creates a new fully refundable monthly child tax credit of $300 per month ($3,600/year) for children ages 6-17 and $360 per month ($4,320/year) for children under 6, with an additional one-time $2,400 bonus payment for newborns in their first month of life

Establishes automatic monthly advance payments through the IRS, with presumptive eligibility based on prior tax returns or information provided through an online portal, eliminating the need to wait until annual tax filing to receive benefits

Phases out the credit starting at $150,000 for joint filers ($112,500 for single filers), with a secondary phase-out beginning at $400,000 for joint filers ($300,000 for single filers)

Protects payments from garnishment, levy, and offset (except for fraud), and requires encoding of electronic payments so financial institutions can identify and protect them from creditor claims

Applies to U.S. citizens and residents including those in Puerto Rico, with separate payment mechanisms for mirror code territories and American Samoa, effective for taxable years beginning after December 31, 2024