Bill · H.R. 2898· House(119-HR-2898)
EITC Lookback Act
- Introduced
- 4/10/2025
- Last activity
- 4/10/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Emilia Sykes
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the ``EITC Lookback Act'', proposes an amendment to the Internal Revenue Code of 1986. It seeks to establish a permanent lookback provision specifically for the Earned Income Credit. Under this provision, a taxpayer could choose to use their earned income from the previous year instead of the current year to determine their credit. This option is available if the taxpayer's earned income for the current taxable year is less than what they earned in the preceding year. The change would apply to taxable years beginning after December 31, 2024.
Yes
Would households on low incomes be better off under this?+5
The bill provides a benefit to low-income households by allowing them to use previous year's higher income to qualify for a larger EITC.
Is this likely to lift people out of poverty?+5
The bill helps reduce poverty by allowing taxpayers with decreased income to maintain higher EITC benefits based on previous earnings.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
- Option for lower income years: If a taxpayer earns less in a current year than they did the year before, they can elect to use the previous year's income to determine their credit. This is found in Section 2(a).
Potential Negative Impacts for People
- No negative impacts are explicitly mentioned in the text provided.
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+5
- Social Issues And Justice
- Improves Poverty Reduction+5
- 4/10/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House