Working Families Tax Cuts Support the Next Generation

Washington, D.C.-The Working Families Tax Cuts advanced by U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) are investing in American families through a variety of new and expanded tax credits that help parents better afford common expenses for their children, like child care and education. They also reduce the cost of adopting a child and helps families save for their children's futures.

"Parenthood is a unique gift, but the financial challenges of raising a family are real. This legislation responds to that challenge by providing additional support for young and growing families," said Crapo. "Combined with lower tax rates across the board, these policies will help low- and middle-income Idahoans give their children a brighter future."

Key wins:

• Permanently increases the Child Tax Credit and indexes it to inflation.
• Establishes tax-advantaged Trump Accounts to help build long-term financial security for children.
• Permanently expands the Employer-Provided Child Care Credit.
• Makes the Adoption Tax Credit partially refundable.
• Increases the Child and Dependent Care Tax Credit and the Dependent Care Assistance Program exclusion to help families afford child care.
• Creates a new Education Freedom Tax Credit to give families more affordable schooling options.

What they are saying:

"In the United States, two-thirds of children ages five and under are living in homes where all available parents are working. This means child care is not optional for most families - it's essential. Child care-related tax breaks can help parents offset the cost of care, but they hadn't been updated in decades. The new law includes a $16 billion investment in child care-related tax credits through permanent increases and enhancements to three provisions currently in the U.S. tax code." - First Five Years Fund

"These enhancements are an important step toward addressing the childcare challenges that impact both families and employers. They provide businesses with more tools to support their teams and help parents stay in the workforce." - U.S. Chamber of Commerce Workforce and International Labor Policy Executive Director Stephanie Ferguson Melhorn

Click HERE to learn more about how the Working Families Tax Cuts support America's next generation.

Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.

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