News Round Up: February 5, 2024
Top Story: The House recently passed a $78 billion bipartisan tax package that expands the federal CTC and restores several business tax cuts. The bill next heads to the Senate. (CNN)
- S. Senator Bob Casey (D-PA) recently introduced the Child and Dependent Care Tax Credit (CDCTC) Enhancement Act, which would expand the federal CDCTC and allow families to collect up to $8,000 in tax credits overall. Unlike the proposal to expand the federal Child Tax Credit (CTC), this bill specifically targets childcare costs. (The Philadelphia Inquirer)
- California Gavin Newsom (D) recently announced the establishment of California Earned Income Tax Credit (CalEITC) Awareness Week (January 26-February 4, 2024) to encourage taxpayers to check if they are eligible to claim the state tax credit. (Office of Governor Gavin Newsom)
- The Illinois Senate and House proposed two bills—SB 1444 and HB3950—that would both create a state CTC valued at $700 per child. If enacted, the Illinois Economic Policy Institute anticipates that the tax credit would decrease childhood poverty in Illinois by 7.6%. (Chicago Sun Times)
- New York lawmakers recently proposed creating a Working Families Tax Credit, which combines the Empire State Child Credit, the state EITC, and the dependent exemption into a single tax credit. (Public News Service)
- The National Women’s Law Center (NWLC) highlights the need to strengthen the federal EITC to ensure that women workers who are paid low wages have access to the full benefit of the tax credit. (National Women’s Law Center)
- The Center on Budget and Policy Priorities (CBPP) discusses how plans to expand and structurally strengthen the federal CTC would support roughly half a million children in veteran and active-duty service families with low earnings. (Center on Budget and Policy Priorities)
- Every week, Tax Credits for Workers and Their Families (TCWF) spotlights one of several partner organizations and the remarkable work happening within their respective states. This week we share a recent Every Texan analysis highlighting how expanding the federal CTC would significantly benefit more than 1.9 million kids in Texas. (Every Texan)