On July 30, Senate Majority Leader Charles Schumer (D-N.Y.) declared that the Senate would vote on a bill to increase the Child Tax Credit on August 1st, the day before the body adjourns for its month-long August vacation.
The Child Tax Credit’s refundable part would rise from $1,600 to $1,800 for the 2023 tax year under the Tax Relief for American Families and Workers Act. Thereafter, the credit would be fully refundable in 2024 and 2025, with $100 annual increases. Additionally, it would make it adjustable for inflation in 2024 and 2025 and enable parents to claim a credit for each qualified kid rather than a single credit regardless of the number of children.
On July 30, Mr. Schumer stated on the Senate floor, “Last night, I filed cloture on this important piece of legislation, and senators should expect to vote on this measure Thursday.” He discussed how the American Rescue Plan Act, which was put out by President Joe Biden and raised the credit to $3,000 while making it completely refundable, will expire in 2021.
“Parents had enough money that year to buy their children healthy food, school supplies, clothes, and other necessities that far too many parents cannot afford. It greatly improved the children,” he remarked. “This bill was voted against by every single Republican, all the way down to the last member.”
By a vote of 357–70 on January 31, the current bill was approved by the House of Representatives, with the support of two thirds of both Democrats and Republicans. Its eventual adoption has been hampered by Republican resistance in the Senate, where 60 votes are needed to break a filibuster and move the law forward.
Ranking Republican on the Senate Finance Committee, Sen. Mike Crapo (R-Idaho), has voiced his objection to the bill’s “lookback” clause, which permits parents to claim the credit based on income from a prior year—even if it is higher than the current year.
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