A bill to amend the Internal Revenue Code of 1986 to increase the personal exemption and to allow a refundable credit for families with young children.

Amends the Internal Revenue Code to increase the deduction for personal exemptions. Establishes greater exemption amounts for taxpayers with children younger than the age of ten based upon the applicable tax bracket. Denies the use of the dependent care credit to taxpayers who elect to use the credit for young children. Allows individuals eligible for the earned income credit an additional refundable tax credit based upon the number of children under the age of ten. Denies the use of the credit for young children to such individuals.

Provides for advance payments of the earned income credit and the credit for young children to eligible taxpayers.