WASHINGTON—U.S. Representative Brittany Pettersen (CO-07) tonight voted to pass H.R. 7024, the Tax Relief for American Families and Workers Act, legislation that has bipartisan, bicameral support and would promote the financial security of working families, support small and medium-sized businesses, and boost innovation and American competitiveness. Some of Pettersen’s top priorities were included in the bill to help Coloradans, including an expansion of the Child Tax Credit (CTC), Low-Income Housing Tax Credit, and increased access to disaster relief.
“At a time when so many American families are struggling to make ends meet, Congress was finally able to come together on a tax package that will lower costs, support our local businesses and economies, and help address our housing crisis,” said Pettersen. “The expansion of the Child Tax Credit included in the bill would benefit an estimated 16 million children in low-income families – including 15,000 kids in my district alone – lifting nearly half a million children out of poverty nationwide. As a mom, I cannot overstate the impact this will have for parents, in addition to the housing tax credit and business support which will bolster our community as a whole.”
The legislation includes provisions that would:
- Expand access to the Child Tax Credit with a phased increase to the refundable portion of the CTC for 2023, 2024, and 2025
- Eliminate a penalty for larger families by ensuring the CTC phase-in is applied fairly to families with multiple children
- Increase the supply of low-income housing by enhancing the Low-Income Housing Tax Credit with increased state allocations and a reduced tax-exempt bond financing requirement
- Increase access to tax relief for certain individuals in qualified major disaster areas
The Center on Budget and Policy Priorities estimates that the bill would benefit 16 million children in low-income families and “lift as many as 400,000 children above the poverty line” in its first year, with more even more set to benefit in 2025. In Colorado’s 7th Congressional District, the Joint Economic Committee estimates this would benefit 15,000 kids in the first year.
The full text of the bill is available here, with a section-by-section summary here.
