Tax Cut for Workers Act of 2025
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Tax Cut for Workers Act of 2025 aims to expand and make permanent certain changes to the Earned Income Credit (EIC). It lowers the minimum age to qualify for the credit, removes age limits entirely, increases the credit amount and phaseout percentages, and adjusts for inflation. Additionally, the bill addresses the application of the EIC to residents of Puerto Rico, U.S. territories with similar tax systems, and American Samoa, and includes a provision allowing taxpayers to use their prior year’s earned income if it’s lower than their current year’s income.
Key provisions
- Lowers the minimum age to qualify for the EIC to 19, with exceptions for students and youth in foster care or experiencing homelessness.
- Eliminates the maximum age limit for receiving the EIC.
- Increases the EIC credit amount and phaseout percentages.
- Adjusts the EIC credit amount for inflation, beginning in 2026.
- Allows taxpayers to use their prior year’s earned income if it’s lower than their current year’s income.
- Modifies the application of the EIC to residents of Puerto Rico, U.S. territories with mirror code tax systems, and American Samoa.
- Conforms the Internal Revenue Code by removing a specific subsection.
- Provides for a mechanism to treat errors in using prior-year earned income as mathematical errors.
Who is affected
- Low-to-moderate income workers
- Families with children
- Individuals experiencing homelessness or in foster care
Bill text
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Sponsors
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19 on record
Primary sponsor
Cosponsors
![Eleanor Holmes [D-DC-At Large] Norton](/_next/image?url=https%3A%2F%2Fcivik-platform-media-us-east-1-prod.s3.us-east-1.amazonaws.com%2Flegislator-portraits%2Fcongress%2FN000147.jpg&w=64&q=75){kind=small}
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