Unlocking Low-Income Taxpayer Clinic Funding Act
Sponsored By: Senator Welch, Peter [D-VT]
Introduced
Summary
Reworks how Low-Income Taxpayer Clinic grants are matched and clarifies which costs count as match. This bill would change what counts as matching funds and reorganize the tax code sections that govern LITC grants.
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- Low-Income Taxpayer Clinics and their sponsors would be able to count salaries, including fringe benefits, and equipment costs as matching funds. Indirect expenses like general institutional overhead may not be used as match, and the changes apply to calendar years beginning after enactment.
- The bill sets the default matching requirement at 100 percent but gives the Treasury Secretary authority to set a lower percentage not below 25 percent if doing so would expand clinic coverage.
- The Internal Revenue Code provision governing LITC grants, section 7526(c), is renumbered and reorganized to clarify implementation and eligibility rules.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
More help for low-income taxpayers
This bill would change matching-fund rules for low-income taxpayer clinics (LITCs). Each clinic would need to provide matching funds equal to the applicable percentage of its grant. Matching could include staff salaries (including fringe benefits) and equipment costs, but not indirect overhead of the sponsoring institution. The default applicable percentage would be 100%. The Secretary could set a lower percentage, but not below 25%, if doing so would expand clinic coverage to more taxpayers. If enacted, the amendments would apply to calendar years beginning after the date of enactment. If enacted, this would help more low-income taxpayers get free or low-cost tax help.
Sponsors & CoSponsors
Sponsor
Welch, Peter [D-VT]
VT • D
Cosponsors
Sen. Marshall, Roger [R-KS]
KS • R
Sponsored 6/24/2026
Roll Call Votes
No roll call votes available for this bill.
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