Bill > HR1425

This bill proposes several significant changes to the Child Tax Credit (CTC) in the Internal Revenue Code of 1986. Specifically, the bill increases the child tax credit amount from $1,000 to $5,000 per child, removes existing income limitations that previously restricted the credit for higher-earning families, and eliminates certain subsections related to the credit's previous implementation. The bill would make the child tax credit fully refundable, which means that even families with little or no federal income tax liability could receive the full credit amount as a direct payment. Additionally, the bill removes some technical provisions related to the credit's application in U.S. territories like Puerto Rico and American Samoa, and strikes a previous provision regarding advanced payment plans. These changes would take effect for tax years beginning after December 31, 2024, meaning the first tax year impacted would be 2025. The modifications are aimed at providing more substantial financial support to families with children by increasing the credit amount and making it more widely accessible regardless of income level.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1425/all-info