Today, Congresswoman Lizzie Fletcher (TX-07) voted for the bipartisan Tax Relief for American Families and Workers Act, H.R. 7024, to enhance the Child Tax Credit and support local businesses.

“The Tax Relief for American Families and Workers Act provides relief for children and families in Houston and across our country and supports small businesses that are vital to our community,” said Congresswoman Lizzie Fletcher.  “By increasing the eligibility for the Child Tax Credit to all families with children, this legislation provides 16 million children with the economic certainty and stability they deserve.  I was glad to vote for this legislation, and I will continue working to pass meaningful legislation to strengthen our economy and benefit our community.”

H.R. 7024 promotes financial security for families by:

·       Expanding access to the Child Tax Credit by phasing in an increase to the refundable portion of the tax credit for 2023-2025;

·       Eliminating penalties for large families by ensuring the tax credit phase-in is applied fairly to families with multiple children;

·       Creating flexibility for taxpayers to use either current- or prior-year income to calculate the child tax credit in 2024 or 2025, similar to bipartisanaction taken six times in the past 15 years; and

·       Adjusting the tax credit for inflation starting in 2024.

H.R. 7024 supports local businesses by:

·       Expanding the small business expensing cap, increasing the amount a small business can write off for expenses in growing and operating their business; and

·       Adjusting the reporting threshold for businesses that use subcontract labor, the first update since 1950.

H.R. 7024 supports pro-growth economic policies by:

·       Extending the Research & Development (R&D) credit so businesses of all sizes can immediately deduct the cost of their U.S.-based R&D investments, driving innovation here in Houston and across the country;

·       Restoring full and immediate expensing for investments in machines, equipment, and vehicles; and

·       Allowing for continued flexibility on interest deductibility for businesses forced to borrow at higher rates to meet their payroll obligations and expand their operations.

In 2021, Congresswoman Fletcher voted for the American Rescue Plan Act, which expanded the Child Tax Credit and lifted 2 million children across the country out of poverty.  Using data from the Center on Budget and Policy Priorities, the Joint Economic Committee estimates 60,000 children in Texas’ Seventh Congressional District would benefit from the expanded Child Tax Credit in the first year.