summary
Introduced
04/09/2025
04/09/2025
In Committee
04/09/2025
04/09/2025
Crossed Over
Passed
Dead
Introduced Session
119th Congress
Bill Summary
A bill to amend the Internal Revenue Code of 1986 to expand, and make permanent certain modifications of, the earned income credit.
AI Summary
This bill, the Tax Cut for Workers Act of 2025, proposes significant modifications to the Earned Income Credit (EIC), a tax credit designed to support low to moderate-income working individuals and families. The bill makes several key changes: it lowers the minimum age for claiming the credit to 19 for most individuals, with special provisions for students (age 24) and former foster or homeless youth (age 18); eliminates the maximum age limit of 65 for claiming the credit; doubles the credit and phaseout percentages from 7.65% to 15.3%; and substantially increases the earned income and phaseout amounts from $4,220 to $9,820 and from $5,280 to $11,610, respectively. Additionally, the bill introduces an inflation adjustment mechanism to periodically update these amounts and allows taxpayers to elect to use their prior year's earned income if it was higher, which could result in a larger tax credit. The bill also extends the application of the Earned Income Credit to U.S. territories like Puerto Rico, American Samoa, and others with mirror code tax systems. These changes would take effect for taxable years beginning after December 31, 2025, potentially providing significant financial support to low-income workers.
Committee Categories
Budget and Finance
Sponsors (45)
Catherine Cortez Masto (D)*,
Angela Alsobrooks (D),
Tammy Baldwin (D),
Michael Bennet (D),
Richard Blumenthal (D),
Lisa Blunt Rochester (D),
Cory Booker (D),
Maria Cantwell (D),
Chris Coons (D),
Tammy Duckworth (D),
Dick Durbin (D),
John Fetterman (D),
Ruben Gallego (D),
Kirsten Gillibrand (D),
Martin Heinrich (D),
John Hickenlooper (D),
Mazie Hirono (D),
Tim Kaine (D),
Mark Kelly (D),
Andy Kim (D),
Angus King (I),
Amy Klobuchar (D),
Ben Ray Luján (D),
Ed Markey (D),
Jeff Merkley (D),
Chris Murphy (D),
Patty Murray (D),
Alex Padilla (D),
Gary Peters (D),
Jack Reed (D),
Jacky Rosen (D),
Bernie Sanders (I),
Brian Schatz (D),
Adam Schiff (D),
Chuck Schumer (D),
Jeanne Shaheen (D),
Elissa Slotkin (D),
Tina Smith (D),
Chris Van Hollen (D),
Mark Warner (D),
Raphael Warnock (D),
Elizabeth Warren (D),
Peter Welch (D),
Sheldon Whitehouse (D),
Ron Wyden (D),
Last Action
Read twice and referred to the Committee on Finance. (on 04/09/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/119th-congress/senate-bill/1372/all-info |
| BillText | https://www.congress.gov/119/bills/s1372/BILLS-119s1372is.pdf |
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