Rep. Houlahan championed provisions in the package to expand the Child Tax Credit, boost credits for affordable housing, and more
WASHINGTON, D.C. – Today, Representative Chrissy Houlahan (D-PA) released a statement following her vote to pass the bipartisan Tax Relief for American Families and Workers Act. The legislation, passed by a vote of 357-70, will deliver critical wins tailored to hardworking families and businesses in Pennsylvania and across the country. A major pillar of the bill, the expanded Child Tax Credit, will help 26,000 children in Chester and Berks Counties.
“This bipartisan tax package represents the progress that’s possible in Washington when we knock it off with partisan politics and find compromise,” said Houlahan. “This bill will directly help 26,000 children and their families in my community through the expanded Child Tax Credit – that’s a huge win for hardworking Pennsylvanians. This package is pro-business, pro-family, and should be immediately taken up by the Senate.”
The bill addresses six major issues:
- Child Tax Credit – increasing the (1) overall amount that is refundable each year beginning in 2023 and (2) maximum $2,000 Child Tax Credit for inflation for tax years 2024 and 2025
- Business Tax Provisions – temporarily restoring various tax breaks through 2025 to boost American research, innovation, and competitiveness
- Low-Income Housing Credit – increasing the amounts that states may receive each year for Low-Income Housing Tax Credits by 12.5%, which subsidizes efforts to build affordable rental housing
- Disaster Tax Relief – allowing special rules for individuals impacted by natural disasters, including Pennsylvanians affected by the East Palestine train derailment last year
- Taiwan Tax Provisions – providing treaty-like tax benefits to reduce the double taxation for both Taiwanese and American businesses, allowing U.S. companies and citizens to expand their international economic impact
- Offsetting COVID-era Tax Credits – preventing new claims for the COVID-era Employee Retention Tax Credit (ERTC) and increasing penalties for fraudulent claims regarding the ERTC program
The legislation reflects Houlahan’s ongoing commitment to fiscal responsibility by offsetting the costs through terminating COVID-era tax credits and increasing penalties for businesses who commit tax credit fraud. Houlahan is the chair of the New Democrat Coalition’s Economic Growth and Fiscal Responsibility Task Force, which endorsed the bipartisan tax package.
Find a full summary of the bill here.
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