FOLLOW US

The House Ways and Means Committee approved tax legislation providing significant relief for working and middle-class families as well as disaster survivors.

On Thursday, the Committee advanced the Economic Mobility Act of 2009 and the Taxpayer Certainty and Disaster Tax Relief Act of 2019 to the House floor for consideration.

The Committee’s Chairman Richard Neal (D-MA) introduced the Economic Mobility Act, which he described as pro-worker, pro-family tax relief legislation.

“Poverty-reducing” tax legislation

Under the bill, all families will be eligible to receive the full Child Tax Credit (CTC) of $2,000 per child.  Workers with no qualifying children will now be able to benefit from the expanded earned income tax credit (the childless EITC).

Additionally, the Economic Mobility Act increases funding for the Child care Development Fund. The bill significantly expands the child and depended care tax credit (CDCTC). It increases the maximum credit rate to 50 percent and amends the phase out threshold to start at $120,000 instead of $15,000. It doubles the amount of child and dependent care expenses that are eligible for the credit to $6,000 for one qualifying individual and $12,000 for two or more qualifying individuals.

Furthermore, the tax legislation permanently provides matching for the EITC and CDCTC for taxpayers in Puerto Rico and other U.S. Territories.

In a statement, Neal said, “Our committee has passed the most significant pro-work, poverty-reducing tax bill in at least a decade for residents of all 50 states, Puerto Rico, and other U.S. territories. It provides an important economic boost for middle-class families who continue to struggle in this economy – something Republicans failed to do with their failed tax legislation two years ago.”

Tax legislation that provides “longer-term certainty” for disaster survivors

On the other hand, Subcommittee on Select Revenue Measures Chairman Mike Thompson (D-CA) introduced the Taxpayer Certainty and Disaster Tax Relief Act.

The bill extends a number of important tax provisions that already expired or expiring including the disaster tax relief. It also extends the New Markets Tax Credit and the Work Opportunity Tax Credit and the credit for biodiesel and biofuels.

Additionally, the tax legislation extends the credits for energy-efficiency improvements to commercial buildings and energy-efficient homes and the credit for short-line railroad maintenance as well as reduced excise taxes on certain beer, wine and spirits.

“This is good news for the American taxpayer and good news for disaster survivors. By approving my bill, we are taking a big step forward in providing longer-term certainty in our tax code,” said Thompson.

He added, “Importantly, this legislation provides much-deserved certainty for those who have survived natural disasters… Those survivors will not have to come to Congress to get tax relief after suffering what is for some, the worst experience of their lives.”