Referred to the House Committee on Ways and Means.
The bill permanently adds a ‘‘lookback’’ option to Internal Revenue Code section 32 (the Earned Income Tax Credit). Taxpayers whose earned income in the current taxable year is lower than the prior year may elect to calculate the EITC using the prior year’s earned income.
Liberals emphasize anti-poverty stability; conservatives emphasize added spending.
Relative to its intended legislative type, this bill is a concise substantive amendment to the Internal Revenue Code that establishes a permanent lookback election for Earned Income Credit calculations and includes an explicit effective date.
The bill permanently adds a ‘‘lookback’’ option to Internal Revenue Code section 32 (the Earned Income Tax Credit).
Taxpayers whose earned income in the current taxable year is lower than the prior year may elect to calculate the EITC using the prior year’s earned income.
The rule applies to taxable years beginning after December 31, 2024.
Technically simple and broadly sympathetic but increases refundable spending without offsets; more likely as part of a larger package than alone.
Relative to its intended legislative type, this bill is a concise substantive amendment to the Internal Revenue Code that establishes a permanent lookback election for Earned Income Credit calculations and includes an explicit effective date. The main substantive mechanism is directly stated.
Liberals emphasize anti-poverty stability; conservatives emphasize added spending.
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals emphasize anti-poverty stability; conservatives emphasize added spending.
Likely strongly supportive: the provision stabilizes refundable benefits for workers during temporary income drops.
Seen as a pro-work, anti-poverty improvement that reduces cliff effects and income volatility.
Generally favorable but cautious: recognizes targeted help to workers, while wanting clarity on cost, administration, and fraud controls.
Views as a modest, work-focused improvement if implemented efficiently.
Likely opposed or skeptical: views the permanent expansion as increased spending and added complexity.
Some may accept a temporary or narrowly targeted approach, but oppose an open-ended entitlement change.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically simple and broadly sympathetic but increases refundable spending without offsets; more likely as part of a larger package than alone.
The bill has not accumulated any surfaced votes yet.
Liberals emphasize anti-poverty stability; conservatives emphasize added spending.
Technically simple and broadly sympathetic but increases refundable spending without offsets; more likely as part of a larger package than…
Relative to its intended legislative type, this bill is a concise substantive amendment to the Internal Revenue Code that establishes a permanent lookback election for Earned Income Credit calculations and includes an e…
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