an earned income tax credit for taxable years beginning in or with such calendar year which allows a refundable tax credit to individuals on the basis of the taxpayer’s earned income which is designed to substantially increase workforce participation. (3) Inflation adjustment In the case of any calendar year after 2020, the $12,000,000 amount in paragraph (1)(A)(ii) shall be increased by an amount equal to— (A) such dollar amount, multiplied by— (B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting calendar year 2019 for calendar year 2016 in subparagraph (A)(ii) thereof. Any increase determined under this clause shall be rounded to the nearest multiple of $100,000. (4) Application of certain rules Rules similar to the rules of subparagraphs (A), (B), (C), and (D) of subsection (a)(4) shall apply for purposes of this subsection. (d) Treatment of payments For purposes of section 1324 of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. . (b) Clerical amendment The table of sections for chapter 77 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 7529. Application of earned income tax credit to possessions of the United States. . 20126. Temporary special rule for determining earned income for purposes of earned income tax credit (a) In general If the earned income of the taxpayer for the taxpayer’s first taxable year beginning in 2020 is less than the earned income of the taxpayer for the preceding taxable year, the credit allowed under section 32 of the Internal Revenue Code of 1986 may, at the election of the taxpayer, be determined by substituting-— (1) such earned income for the preceding taxable year, for (2) such earned income for the taxpayer’s first taxable year beginning in 2020. (b) Earned income (1) In general For purposes of this section, the term earned