Federal RuleAug 21
62
DOL Rewrites Disability Rules for 'Merit-Based Opportunity' Push
RuleLabor DepartmentFederal Contract Compliance Programs OfficeSignificant Wallet
119-hr-2764119th CongressWALLET
Tax Cut for Workers Act of 2025
Sponsored By: Representative Evans, Dwight [D-PA-3]
Introduced
Summary
Would expand and make permanent the Earned Income Tax Credit for workers without qualifying children. It would also extend the credit to U.S. possessions and let taxpayers elect to use prior-year earned income to calculate the credit when that increases their benefit.
Show full summary
- Workers without qualifying children would get wider eligibility and age flexibility. The bill lowers the general minimum age to 19, lets students qualify at 24, and removes the upper age cap.
- The credit would be substantially larger for eligible adults. The credit rate rises to 15.3% and income thresholds move to around $10,000, increasing the amount lower earners can claim.
- The bill extends EITC rules beyond 2025 to Puerto Rico and certain U.S. possessions and creates a new election to base the credit on prior-year earned income when that yields a bigger credit, with special rules for joint returns and for correcting errors.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Bigger EITC for workers without kids
If enacted, childless workers could get a bigger Earned Income Tax Credit for tax years after December 31, 2025. The rate would rise from 7.65% to 15.3%. Key dollar amounts would rise from $4,220 to $9,820 and from $5,280 to $11,610. The minimum age to qualify would be 19, or 24 if you are a student; former foster youth and qualified homeless youth could qualify at 18 with required consent or certification. The age cap would be removed, so people 65 and older could also qualify if they meet the other rules.
EITC continues in Puerto Rico and territories
If enacted, residents of Puerto Rico, American Samoa, and mirror-code territories could keep claiming the EITC after 2025. The bill would remove language that limited these rules to calendar years 2021 through 2025. Territorial households would continue under those EITC provisions unless Congress changes them later.
Use last year's income for EITC
If enacted, when you earn less than last year, you could choose to use last year's earned income to figure your EITC. For a joint return, you would use the sum of both spouses' prior-year earned income. This would apply to tax years after December 31, 2025. Wrong use of this option would be treated as a math error by the IRS. Using last year's income would not change how your gross income is figured under other rules.
Index EITC amounts for inflation
If enacted, several EITC dollar amounts would be tied to inflation using the Consumer Price Index. Some amounts would adjust for taxable years beginning after 2015 or 2021, and others after 2026. The base years used for the math would be 1995, 2008, 2020, or 2025, depending on the amount.
Technical repeal in EITC rules
If enacted, the bill would repeal subsection (n) of the EITC rules for tax years after December 31, 2025. The excerpt does not show what that subsection did, so the effect on refunds for most filers is unclear.
Sponsors & CoSponsors
Sponsor
Evans, Dwight [D-PA-3]
PA • D
Cosponsors
Rep. Khanna, Ro [D-CA-17]
CA • D
Sponsored 4/9/2025
Rep. Ansari, Yassamin [D-AZ-3]
AZ • D
Sponsored 4/9/2025
Rep. Crockett, Jasmine [D-TX-30]
TX • D
Sponsored 4/9/2025
Rep. DeLauro, Rosa L. [D-CT-3]
CT • D
Sponsored 4/9/2025
Rep. Foushee, Valerie P. [D-NC-4]
NC • D
Sponsored 4/9/2025
Rep. McGovern, James P. [D-MA-2]
MA • D
Sponsored 4/9/2025
Rep. Nadler, Jerrold [D-NY-12]
NY • D
Sponsored 4/9/2025
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 4/9/2025
Rep. Ocasio-Cortez, Alexandria [D-NY-14]
NY • D
Sponsored 4/9/2025
Rep. Ramirez, Delia C. [D-IL-3]
IL • D
Sponsored 4/9/2025
Rep. Sánchez, Linda T. [D-CA-38]
CA • D
Sponsored 4/9/2025
Rep. Scanlon, Mary Gay [D-PA-5]
PA • D
Sponsored 4/9/2025
Rep. Sewell, Terri A. [D-AL-7]
AL • D
Sponsored 4/9/2025
Rep. Simon, Lateefah [D-CA-12]
CA • D
Sponsored 4/9/2025
Rep. Thanedar, Shri [D-MI-13]
MI • D
Sponsored 4/9/2025
Rep. Titus, Dina [D-NV-1]
NV • D
Sponsored 4/9/2025
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Sponsored 4/9/2025
Rep. Horsford, Steven [D-NV-4]
NV • D
Sponsored 4/9/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov