January 31, 2024

Casten Votes for Legislation to Expand Child Tax Credit, Boost Affordable Housing

Washington, D.C. — Today, U.S. Congressman Sean Casten (IL-06) voted for the Tax Relief for American Families and Workers Act of 2024, legislation that would expand the Child Tax Credit to benefit over 21,000 children in the 6th District and boost affordable housing throughout Illinois.

“The enhanced Child Tax Credit as part of the American Rescue plan was one of the most impactful things Congress has done and lifted 153,000 Illinois children out of poverty. We should never have let it expire,” said Rep. Casten. “I’m proud that this legislation includes a modest expansion of the Child Tax Credit, provides significant boosts for affordable housing, and helps small businesses. 

“That said, there’s still more work to do. I’m disappointed that my colleagues across the aisle voted against the fully enhanced Child Tax Credit. We’ll continue working to fully restore and make the CTC permanent and ensure that no parent has to decide between paying for rent, diapers, or a health care visit.”

Background on The Tax Relief for American Families and Workers Act of 2024

Supports Working Families with an Enhanced Child Tax Credit

  • Expands access to the child tax credit: phased increase to the refundable portion of the child tax credit for 2023, 2024, and 2025.
  • Eliminates penalties for larger families: ensures the child tax credit phase-in is applied fairly to families with multiple children.
  • One-year income lookback: creates 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.
  • Inflation relief: adjusts the tax credit for inflation starting in 2024.

Expands Innovation and Competitiveness with Pro-Growth Economic Policies

  • Research & Development (R&D) expensing so businesses of all sizes can immediately deduct the cost of their U.S.-based R&D investments instead of over five years – encouraging American innovation and improving our competitive position versus China and the rest of the world.
  • Interest deductibility: continued flexibility for businesses forced to borrow at higher interest rates to meet their payroll obligations and expand their operations.
  • 100 percent expensing: restore full and immediate expensing for investments in machines, equipment, and vehicles.
  • Taiwan double tax relief: strengthens America’s competitive position with China by removing the current double taxation that exists for businesses and workers with a footprint in both the United States and Taiwan.

Builds Up Main Street and Rebuilds Communities Struck by Disasters

  • Expands small business expensing cap: increases the amount of investment that a small business can immediately write off to $1.29 million, an increase above the $1 million cap enacted in 2017.
  • Cuts red tape for small businesses: adjusts the reporting threshold for businesses that use subcontract labor from $600 to $1,000 and index for inflation – the first update to the threshold since the 1950s.
  • Helps families get back on their feet with disaster tax relief covering recent hurricanes, flooding, wildfires, and the Ohio rail disaster.

In addition, the Tax Relief for American Families and Workers Act of 2024 will:

  • Increase the supply of low-income housing by enhancing the Low-Income Housing Tax Credit, a public-private partnership with a proven track record, with increased state allocations and a reduced tax-exempt bond financing requirement.
  • End the Employee Retention Tax Credit Program
  • Save over $70 billion in taxpayer dollars by accelerating the deadline for filing backdated claims to January 31, 2024, under the COVID-era employee retention tax credit – a program hit by major cost overruns and fraud.

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