Sponsor
James E. Banks
Senator · R-IN
Senator · R-IN
The bill provides substantial, permanent tax credits and a new prenatal credit that boost income for families with children—especially lower‑income households—while increasing federal spending and introducing eligibility, filing, and administrative changes that can exclude some families, raise taxes for certain households, and create compliance burdens.
Parents and families with children (especially low- and moderate-income households) receive a larger, permanent Child Tax Credit — $4,200 per child under 6 and $3,000 for older children — with a formula that proportionally boosts benefits for very low‑income taxpayers.
Low-income workers with qualifying children get larger refundable Earned Income Tax Credit amounts because of higher caps and adjusted phaseout tables.
Pregnant people (at or after 20 weeks) gain a refundable prenatal credit of up to $2,800, providing direct financial support during pregnancy before birth.
Single parents and caregivers who currently use head‑of‑household filing status will face higher taxes or reduced benefits because the bill eliminates that filing status.
All taxpayers and the federal budget are exposed to higher long‑term spending because making the expanded child credit and prenatal credit permanent increases outlays, potentially raising deficits or forcing offsets (higher taxes or cuts elsewhere).
Immigrants and families without full documentation risk exclusion because stringent SSN and documentation requirements (SSNs for parents and each child, physician certification) will prevent some otherwise eligible households from claiming credits.
Based on analysis of 3 sections of legislative text.
Permanently expands the Child Tax Credit (higher per-child amounts and a pregnancy credit), overhauls the EITC with new caps and phaseouts, and eliminates the dependent exemption and head-of-household filing status after 2025.
Official title: Amend the Internal Revenue Code of 1986 to enhance the child tax credit, and for other purposes.
Introduced April 9, 2025 by James E. Banks · Last progress April 9, 2025
Creates a permanent, larger Child Tax Credit with higher per-child amounts and a new refundable pregnancy credit rule, and substantially rewrites rules for the Earned Income Tax Credit (EITC). It also removes the additional dependent personal exemption and repeals the head-of-household filing status for tax years beginning after December 31, 2025, while changing many income thresholds, phaseouts, caps, and indexing rules affecting how families and low- and middle-income taxpayers get refundable tax benefits.