House BillHR 463Inflation and pricesIncome tax credits
Lower Your Taxes Act
INTRO JAN 15· LAST ACTION JAN 15
READING
59MIN
COSPONSORS
3
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
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This bill matters because it could put more money directly into the pockets of working families and individuals, potentially helping them cover essential costs like food, housing, and childcare. The introduction of a monthly Child Tax Credit could provide more consistent financial stability for families throughout the year, rather than just a lump sum at tax time, which could significantly reduce child poverty.
By increasing taxes on higher earners and corporations, the bill shifts the tax burden, aiming to create a more progressive tax system and generate revenue to reduce the national deficit and debt. If this bill becomes law, many low- and middle-income taxpayers could see a substantial increase in their take-home pay or tax refunds, while some wealthier individuals and businesses would pay more in taxes. If it doesn't pass, these expanded benefits would not be available, and the tax structure would remain as it is today.
KEY PROVISIONS
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PROVISION 01
Significantly increases the amounts and eligibility for the Earned Income Tax Credit (EITC) by raising credit percentages, increasing income thresholds, and lowering the minimum age to 18 for workers without children.
This would mean larger tax refunds for millions of low- and middle-income workers and allow more young adults to qualify for the credit.
PROVISION 02
Establishes a federal program to make state non-refundable earned income tax credits effectively refundable, meaning the federal government would pay individuals the amount of their state credit that exceeds their state tax liability.
This would provide additional financial relief to low-income workers in states with these specific tax credits.
PROVISION 03
Creates a new Child Tax Credit that is fully refundable and paid out to eligible families on a monthly basis.
Monthly payments could provide more stable financial support for families throughout the year and significantly reduce child poverty.
PROVISION 04
Requires the Treasury Department to establish a program to notify individuals who may be eligible for the Earned Income Tax Credit but haven't claimed it.
This aims to ensure more eligible individuals receive the tax benefits they are entitled to, reducing unclaimed credits.
PROVISION 05
Increases tax rates for certain corporations and eliminates the lower capital gains tax rates for some high-income taxpayers.
This provision aims to increase federal revenue to offset the cost of expanded tax credits and contribute to deficit and debt reduction.
This bill matters because it could put more money directly into the pockets of working families and individuals, potentially helping them cover essential costs like food, housing, and childcare. The introduction of a monthly Child Tax Credit could provide more consistent financial stability for families throughout the year, rather than just a lump sum at tax time, which could significantly reduce child poverty.
By increasing taxes on higher earners and corporations, the bill shifts the tax burden, aiming to create a more progressive tax system and generate revenue to reduce the national deficit and debt. If this bill becomes law, many low- and middle-income taxpayers could see a substantial increase in their take-home pay or tax refunds, while some wealthier individuals and businesses would pay more in taxes. If it doesn't pass, these expanded benefits would not be available, and the tax structure would remain as it is today.
KEY PROVISIONS
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high
Significantly increases the amounts and eligibility for the Earned Income Tax Credit (EITC) by raising credit percentages, increasing income thresholds, and lowering the minimum age to 18 for workers without children.
This would mean larger tax refunds for millions of low- and middle-income workers and allow more young adults to qualify for the credit.
med
Establishes a federal program to make state non-refundable earned income tax credits effectively refundable, meaning the federal government would pay individuals the amount of their state credit that exceeds their state tax liability.
This would provide additional financial relief to low-income workers in states with these specific tax credits.
high
Creates a new Child Tax Credit that is fully refundable and paid out to eligible families on a monthly basis.
Monthly payments could provide more stable financial support for families throughout the year and significantly reduce child poverty.
med
Requires the Treasury Department to establish a program to notify individuals who may be eligible for the Earned Income Tax Credit but haven't claimed it.
This aims to ensure more eligible individuals receive the tax benefits they are entitled to, reducing unclaimed credits.
high
Increases tax rates for certain corporations and eliminates the lower capital gains tax rates for some high-income taxpayers.
This provision aims to increase federal revenue to offset the cost of expanded tax credits and contribute to deficit and debt reduction.
Amendments expanding the Earned Income Tax Credit apply to tax years beginning after December 31, 2025.
After December 31, 2025
Treasury's program to notify taxpayers of potential EITC eligibility begins for tax years starting after 2025.
After December 31, 2025
Program for federal payments for State non-refundable EITC equivalency amounts begins for tax years starting after 2025.
After December 31, 2026
Inflation adjustments for EITC earned income and phaseout amounts begin for taxable years starting after 2026.
GLOSSARY
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Earned Income Tax Credit (EITC)
A refundable tax credit for low- to moderate-income working individuals and families, designed to reduce the amount of tax owed and potentially result in a refund.
Child Tax Credit (CTC)
A tax credit designed to help families with qualifying children reduce their tax liability. This bill proposes making it fully refundable and payable monthly.
Refundable Tax Credit
A tax credit that can reduce a taxpayer's liability to below zero, meaning if the credit amount is more than the tax owed, the taxpayer receives the difference as a refund.
Non-refundable Tax Credit
A tax credit that can reduce a taxpayer's liability to zero, but no portion of the credit can be received back as a refund if it exceeds the amount of tax owed.
Phaseout
The income range over which the amount of a tax credit or deduction gradually decreases until it is completely eliminated for higher income levels.
Capital Gains
The profit earned from the sale of an asset (like stocks, bonds, or real estate) that has been held for investment purposes.
National Deficit
ACTION TIMELINE
2 EVENTS
JAN 15, 25
Introduced in House
INTROREFERRAL
JAN 15, 25
Referred to the House Committee on Ways and Means.
