Costa votes to expand Child Tax Credit, Disaster Relief for Valley Families

WASHINGTON – Congressman Jim Costa (CA-21) voted to pass the Tax Relief for American Families and Workers Act, bipartisan legislation that would deliver vital tax relief for families and communities across the San Joaquin Valley.

“Since the beginning, I’ve been a champion for the Child Tax Credit, helping secure a major policy in the American Rescue Plan that cut child poverty in half. Although this provision could have been further enhanced to previous levels. House Democrats secured key tax cuts to support Valley families, spur affordable housing, and provide disaster relief for our communities.” said Costa. 

The expanded Child Tax Credit (CTC) would help lift nearly half a million kids out of poverty next year - benefitting nearly 16 million kids in the first year according to estimates from the Center on Budget and Policy Priorities. The law would allow the amount of the credit that “phases-in” at lower income levels to be based on the number of children a family has, not just family income, and would expand the refundable portion of the credit.

The Tax Relief for American Families and Workers Act would deliver vital tax relief for families including:

• Increasing the maximum Child Tax Credit (CTC) refund amount to $1,800, up from $1,600 - benefitting 99,000 children in California’s 21st Congressional District. The refund increases to $2,000 and will adjust with inflation in 2024 and 2025.

• Enhancing the Low-Income Housing Tax Credit (LIHTC) will help develop more than 200,000 affordable housing units.

• Restoring immediate domestic research and development (R&D) tax deductions for small businesses.

• Providing expense and interest deductions for farmers and family-owned farms.

 The bill includes the Protect Innocent Victims of Taxation After Fire Act, a bipartisan bill cosponsored by Costa, which would exempt qualified wildfire payments from federal income taxes. 

To learn more about the legislation click HERE.