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Family First Act
2/6/2025, 11:38 PM
Summary of Bill HR 353
Specifically, the bill proposes to increase the maximum amount of the child tax credit from $2,000 to $3,000 per child, with an additional $600 credit for children under the age of 6. The bill also aims to make the credit fully refundable, meaning that families who do not owe federal income tax would still be able to receive the full amount of the credit.
In addition to these changes, the bill includes provisions to index the credit to inflation, ensuring that the value of the credit does not erode over time. The bill also includes measures to simplify the process of claiming the credit, making it easier for families to access this financial support. Overall, the Child Tax Credit Enhancement Act seeks to provide much-needed assistance to families with children, helping to alleviate financial burdens and support the well-being of children across the United States.
Congressional Summary of HR 353
Family First Act
This bill increases the child tax credit and provides a new tax credit for pregnant mothers. The bill also makes changes to the state and local tax (SALT) deduction, earned income tax credit (EITC), head of household filing status, tax exemption for dependents, and deduction for dependent care expenses.
This bill increases the child tax credit to as much as $4,200 for each child (depending on the child’s age and the taxpayer's modified adjusted gross income) and makes the tax credit fully refundable. (Currently, a portion is refundable.) Under the bill, the child tax credit is limited to six children and phases out once a taxpayer’s modified adjusted gross income exceeds a certain threshold.
The bill provides a new refundable tax credit for pregnant mothers of up to $2,800 for each unborn child whose gestational age is 20 weeks or more. The tax credit phases out once a taxpayer’s modified adjusted gross income exceeds a certain threshold.
The bill permanently extends the $10,000 limit on the SALT deduction for individuals. (Currently, the SALT deduction limit for individuals expires in 2026.)
The bill permanently eliminates the additional personal exemption for dependents. (Under current law, an exemption for dependents is available starting in 2026.)
This bill also eliminates the
• head of household filing status,
• tax credit for dependent care expenses for children under 13 years old, and
• different percentages that apply based on the number of qualifying children in the EITC calculation.
