Bill · H.R. 1425· House(119-HR-1425)
To amend the Internal Revenue Code of 1986 to increase the amount of the child tax credit, to make such credit fully refundable, to remove income limitations from such credit, and for other purposes.
- Introduced
- 2/18/2025
- Last activity
- 2/18/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Ryan Mackenzie
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill proposes changes to the Internal Revenue Code of 1986 regarding the child tax credit. It aims to increase the credit amount from $1,000 to $5,000. The legislation also seeks to make the credit fully refundable and remove existing income limitations. Additionally, the bill includes provisions to remove deadwood and make conforming amendments. These changes are intended to apply to taxable years beginning after December 31, 2024.
Yes· 3 of 17
Would households on low incomes be better off under this?+7
Full refundability and higher amounts provide substantial relief to low-income families.
Is this likely to lift people out of poverty?+6
Increasing the credit to $5,000 and making it fully refundable provides significant support to low-income households.
Would children be better off under this?+5
The bill provides significantly more financial support per child through the increased tax credit.
The opposite
Does this reduce what the federal government spends?-5
Increasing the child tax credit and making it fully refundable increases federal outlays.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Financial Support: Section 1(a) increases the child tax credit from $1,000 to $5,000, which provides more money to those with children.
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Expanded Eligibility: Section 1(b) removes income limitations, which allows more people to qualify regardless of how much they earn.
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Full Refundability: The bill's purpose is to make the credit fully refundable, which can provide direct financial benefits to people even if they do not owe other taxes.
Potential Negative Impacts for People
- No specific negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+7Good For Children+5Good For Middle Class Households+5Good For High Income Households+4Good For Young Adults+4Good For African Americans+3Good For Asian Americans+3Good For Hispanic Americans+3Good For Middle Aged+3Good For Native Americans+3Good For White Americans+3Good For Women+3
- Social Issues And Justice
- Improves Poverty Reduction+6Improves Childcare Affordability+4Improves Racial Equity+3
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Small Business Taxes+1Reduces Government Spending-5
- 2/18/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House