Bill Details
Status
Latest action
2025-02-18 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-02-18
Policy Area
Taxation
Committees
View committees (1)
8
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would make the child tax credit much larger and easier for more families to use. It would raise the credit from $1,000 to $5,000 per child, make the credit fully refundable so families can receive it even if they owe little or no income tax, and remove income limits so more households can qualify. The bill would also update the tax code by removing old or outdated language and rules. If passed, these changes would apply to tax years starting after December 31, 2024.
- Raises the child tax credit amount from $1,000 to $5,000.
- Makes the credit fully refundable, which means families could get the full benefit even if they do not owe enough tax to claim it all.
- Removes income limits for the credit, expanding access to more families.
- Applies to tax years beginning after December 31, 2024, and also makes several technical changes to clean up old tax code language.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1425 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 18, 2025
Mr. Mackenzie introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CHILD TAX CREDIT IMPROVEMENTS.
(a) Increase in Credit Amount.--Section 24(a) of the Internal
Revenue Code of 1986 is amended by striking ``$1,000'' and inserting
``$5,000''.
(b) Removal of Income Limitations.--Section 24 of such Code is
amended by striking subsection (b).
(c) Removal of Deadwood.--
(1) Section 24 of such Code is amended by striking
subsections (i) and (j).
(2) Section 24(k)(2) of such Code is amended--
(A) by striking subparagraph (A), and
(B) by striking ``(B) Application to taxable years
after 2021.''.
(3) Section 24(k)(3)(A) of such Code is amended by striking
``and without regard to the application of this section to bona
fide residents of Puerto Rico under subsection (i)(1)''.
(4) Section 24(k)(3)(C)(ii) of such Code is amended to read
as follows:
``(ii) Application of section in event of
absence of approved plan.--In the case of a
taxable year with respect to which a plan is
not approved under subparagraph (B), rules
similar to the rules of paragraph (2) shall
apply with respect to bona fide residents of
American Samoa (within the meaning of section
937(a)).''.
(5) Chapter 77 of such Code is amended by striking section
7527A (and by striking the item relating to such section in the
table of sections for such chapter).
(d) Conforming Amendments.--Section 24(h) of such Code is amended
by striking paragraphs (2) and (3).
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
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