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Democrats Introduce Bill to Expand Child Tax Credit to Include $2K for Newborns

S.J. Steinhardt
Published Date:
Jun 21, 2023


Democratic members of the U.S. House of Representatives, who have been trying to revive a child tax credit (CTC) that expired in 2021, have introduced legislation that would permanently expand the  Child Tax Credit (CTC) by including a $2,000 payment for newborn babies, Roll Call reported.

The legislation, if passed, would increase the benefit to as much as $5,300 in the first year of a child’s life. House Democrats have tried to revive the former CTC by linking it to a return to immediate deductibility for research-and-development expenses as part of a budget deal.

The proposed legislation would also revive the Young Child Tax Credit (YCTC) that existed in 2021. That credit was worth $3,600 for children under 6 and $3,000 for older children, and it was paid in monthly installments. The current maximum is $2,000, and it is paid out only at tax time, according to a fact sheet issued by Rep. Rosa DeLauro (D-Conn.), one of the sponsors of the bill. The others are Reps. Suzan DelBene (D-Wash.) and Ritchie Torres (D-N.Y.)

By increasing the size of the credit in the month a baby is born from $300 to $2,000, the total credit could increase by $1,700, thus raising the yearly credit from $3,600 to $5,300.

The legislation would also make the credit fully refundable by removing a rule limiting the refundable portion to $1,400 and by removing the earnings requirement.

The current child tax credit, which expires after 2025, is available at the full amount for married couples filing jointly who earn up to $400,000, and for individuals who earn up to $200,000. Above those thresholds, it phases out at a rate of 5 cents for each dollar, according to Roll Call.

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