Child Tax Credit: Temporary Expansion for 2021 Under the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2) [Updated May 12, 2021]   [open pdf - 1MB]

From the Document: "In recent years, there has been increased interest [hyperlink] in providing direct benefits to families with children to reduce child poverty in the United States, sometimes in the form of tax benefits. The National Academy of Sciences (NAS) [hyperlink] included a 'child allowance' as part of a package of policies to reduce child poverty [hyperlink] over 10 years. (Senator Romney [hyperlink] has also proposed a child allowance.) Some research [hyperlink] has suggested that increasing the amount of the child tax credit that low-income families receive would substantially reduce child poverty [hyperlink], boost future earnings, and potentially improve future health and education outcomes [hyperlink]. In the 116th Congress, there were several legislative proposals [hyperlink] to expand the child tax credit, especially for lower-income families that tend to receive little or no benefit from the current credit. In the 117th Congress, a temporary one-year expansion of the child credit (for 2021) was included in the American Rescue Plan Act of 2021 (ARPA; P.L. [Public Law] 117-2). The Biden Administration has proposed [hyperlink] making the full refundability provision included in the ARPA expansion of the child credit permanent, while extending other ARPA provisions through the end of 2025. This Insight provides a summary of the child tax credit prior to ARPA and an overview of the temporary child credit expansion under ARPA for 2021."

Report Number:
CRS Insight, IN11613
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Media Type:
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