The US House of Representatives passed the Tax Relief for American Families and Workers Act last week with the support of our Massachusetts federal delegates.
Why is this bill important?
This $78 billion tax cut package benefits families by enhancing the Child Tax Credit, helping an estimated 16 million children nationwide and approximately 182,000 children in Massachusetts (as estimated by the Center on Budget and Policy Priorities and cited in the Boston Globe).
This bipartisan compromise increases the credit for families who don’t owe income taxes from $1,600 in 2022 to $1,800 in 2023, then $1,900 for 2024, and $2,000 for 2025 based on inflation. This legislation also includes a housing tax credit, which will help support the development of more affordable housing, especially in the Boston area, by increasing the Low-Income Housing Tax Credit by 12.5% through 2025.
Although their iteration of the bill did not pass, Democrats had advocated for restoring the tax credit to its pandemic level, during which families received payments up to $3,600. Additionally, they supported the continuation of monthly payments for low-income families who do not owe income taxes. This approach aimed to eliminate the need for these families to wait for their federal tax returns annually, ultimately contributing to the reduction of child poverty.
What's next?
CLM will continue to advocate for the passage of this bill and monitor the Senate's actions.
Take action!
1. Thank our US Representatives for passing this bill.
2. Urge our US Senators (Senator Elizabeth Warren and Senator Ed Markey) to enact this bill before the April 15th tax-filing deadline