; and (2) in paragraph (2), by striking $6,000 and inserting $16,000 . (c) Special rule for married couples filing separate returns Paragraph (2) of section 21(e) of the Internal Revenue Code of 1986 is amended to read as follows: (2) Married couples filing separate returns (A) In general In the case of married individuals who do not file a joint return for the taxable year— (i) the applicable percentage under subsection (a)(2) and the number of qualifying individuals and aggregate amount excludable under section 129 for purposes of subsection (c) shall be determined with respect to each such individual as if the individual had filed a joint return with the individual's spouse, and (ii) the aggregate amount of the credits allowed under this section for such taxable year with respect to both spouses shall not exceed the amount which would have been allowed under this section if the individuals had filed a joint return. (B) Regulations The Secretary shall prescribe such regulations or other guidance as is necessary to carry out the purposes of this subsection. . (d) Adjustment for inflation Section 21 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (i) Inflation adjustment (1) In general In the case of a calendar year beginning after 2024, the $125,000 amount in paragraph (2) of subsection (a) and the dollar amounts in subsection (c) shall each 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 the calendar year in which the taxable year begins, determined by substituting calendar year 2023 for calendar year 2016 in subparagraph (A)(ii) thereof. (2) Rounding If any dollar amount, after being increased under paragraph (1), is not a multiple of $100, such dollar amount shall be rounded to the next lowest multiple of $100. . (e) Credit made refundable Section 21(g) of the Internal Revenue Code of 1986 is amended to read as follows: (g) Credit made refundable for certain