Kelly highlights Working Families Tax Cuts success as the law's one-year anniversary nears

WASHINGTON, D.C. -- Today, ahead of the one-year anniversary of President Donald Trump signing the Working Families Tax Cuts into law, U.S. Rep. Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, highlighted the benefits tens of millions of Americans received during the first tax season under the law.

"In its first year, the Working Families Tax Cuts put more money back into the pockets of hardworking Pennsylvania families, made historic investments in our nation's children, gave a boost to our seniors, and strengthened Main Street businesses for years to come," said Rep. Kelly. "Thanks to these incredible new policies, including No Tax on Tips and No Tax on Overtime, this law leverages the tax code to work for Americans, not against them. From employers to employees, from children to seniors, the Working Families Tax Cuts are a game changer for Pennsylvanians."

President Trump signed the Working Families Tax Cuts into law on July 4, 2025.

By The Numbers

The latest U.S. Treasury data, released in June, revealed:

• 96% of filers receiving a tax cut earned less than $200,000.
• Nearly 70% of filers receiving a tax cut earned less than $100,000.
• No Tax on Tips: Over 7.5 million filers have claimed No Tax on Tips, with an average deduction of over $7,000.
• No Tax on Overtime: Over 29 million filers have claimed No Tax on Overtime, with an average deduction of over $3,100.
• Enhanced Senior Deduction: Over 35 million seniors have claimed the Enhanced Deduction for Seniors, with an average deduction of over $7,500.
• No Tax on Car Loan Interest: Over 1.4 million filers have claimed No Tax on Car Loan Interest on their new American vehicles, with an average deduction of over $1,800.
• Trump Accounts: Over 5.5 million Trump Accounts have been opened, with 1.4 million eligible for the $1,000 pilot program contribution.
• Enhanced Child Tax Credit: Nearly 40 million families have claimed the enhanced Child Tax Credit, which is permanently doubled and expanded by the Working Families Tax Cuts.
• Doubled Standard Deduction: Over 127 million filers (90% of all tax filers) have claimed the permanently doubled standard deduction, simplifying tax filing for millions across America.

Opportunity Zones Success

The Working Families Tax Cuts also expanded and made permanent Rep. Kelly's Opportunity Zones legislation, which encourages private investment in low-income and rural communities. Since its enactment, Opportunity Zones have attracted more than $100 billion in private investment across thousands of communities nationwide.

The City of Erie, Pennsylvania has become a national model for OZ implementation. With more than $115 million in private investment into downtown Erie, OZs have led to 108 new fully occupied residences, revitalized and created more than 100,000 square feet of new commercial space, and established space for 25 new businesses. Overall, $400 million of long-term capital investment is at work, breathing new life into Downtown Erie.

This week, the U.S. Department of the Treasury announcedthe opening of the next nomination period for states, territories, and the District of Columbia to nominate eligible communities to be designated as Qualified Opportunity Zones (QOZs). Under President Trump's Working Families Tax Cuts, the Opportunity Zone tax incentive was permanently renewed, enhanced incentives for investment in eligible rural communities were added, and a process was established for redesignating zones every 10 years.