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Rep. Don Beyer (D-VA), Senior House Democrat on Congress’ Joint Economic Committee and a member of the House Ways and Means Tax Subcommittee, today voted for bipartisan legislation to expand the Child Tax Credit (CTC) and the Low-Income Housing Tax Credit (LIHTC), which the Ways and Means Committee advanced on a vote of 40-3.

Beyer said:

“The bill we passed today includes an expansion of the Child Tax Credit that would benefit an estimated 16 million children in low-income families, lifting nearly half a million children out of poverty. Those changes include expansions of both the size and refundability of the Child Tax Credit, with benefits indexed to inflation and expanded for low-income families with multiple children. The bill also enhances the Low Income Housing Tax Credit to spur construction of new affordable housing, a major goal I have long pursued on the Ways and Means Committee.

“These substantial benefits for low-income families are paid for by reductions in widely abused tax credits for businesses, making this bill a good deal for the American people. A major Child Tax Credit expansion would be a remarkable accomplishment amid a chaotic and historically unproductive House Republican majority. It is my hope that passing this bill now with an overwhelmingly bipartisan vote will send a message to the full House that these measures have strong support, and will ensure that they are a key component of future tax discussions in the 2025 tax cliff, and beyond.”

“In 2021 Democrats passed an expanded Child Tax Credit that led to the largest drop in in child poverty in American history. The American Rescue Plan’s generous provisions, including monthly checks and full refundability, maximized benefits for low-income Americans. I share my colleagues’ frustration that this bill does not contain these enormously successful measures, and will keep fighting for their restoration.”

The Ways and Means Committee voted to favorably report H.R. 7024, the Tax Relief for American Families and Workers Act, on a vote of 40-3. Text of the bill is available here, with a section-by-section summary here.

The legislation includes provisions that would (per the Senate Finance Committee):

• Expand access to the child tax credit with a phased increase to the refundable portion of the child tax credit for 2023, 2024, and 2025.
• Eliminate a penalty for larger families by ensuring the child tax credit phase-in is applied fairly to families with multiple children.
• Offer a one-year income “lookback” provision to create flexibility for taxpayers to use either current- or prior-year income to calculate the child tax credit in 2024 or 2025, similar to bipartisan action taken six times in the past 15 years.
• Adjust the tax credit for inflation starting in 2024.
• 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.

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.

Beyer served on the House Committee on Ways and Means during the drafting of the American Rescue Plan Act, which included the expanded Child Tax Credit of 2021 that drove the largest reduction in child poverty in American history. He made support and advocacy for the expanded Child Tax Credit a key focus during his tenure as Chairman of Congress’ Joint Economic Committee, and remains a leading voice on the Ways and Means Committee supporting revival of the expanded CTC.

Beyer is a lead cosponsor of the Affordable Housing Credit Improvement Act, bipartisan and bicameral legislation to strengthen the Low-Income Housing Tax Credit.