Alabama Lawmakers Advocate for Family-Focused Tax Breaks in New Legislation
WASHINGTON — As Alabama lawmakers rally around provisions for child and family tax breaks, Republicans are poised to advance President Donald Trump’s ambitious budget bill this week. Key supporters, U.S. Senator Katie Britt and U.S. Representative Robert Aderholt, are emphasizing tax incentives aimed at enhancing child care and fostering adoption.
Senator Britt, a staunch advocate for affordable child care, expressed enthusiasm for expanding the employer-provided credit under section 45F. “We’re the party of hardworking Americans,” Britt stated, highlighting the need for parents to feel empowered in tackling child care costs. The proposed legislation would boost the maximum employer credit from $150,000 to $500,000 and increase the reimbursement rate for qualified child care expenses from 25% to 40%. Small businesses would also benefit, with an increase to a $600,000 cap and 50% reimbursement.
Moreover, the legislation proposes enhancing the child tax credit from $2,000 to $2,500 for the years 2025-2028, while making the $2,000 credit permanent and indexed for inflation thereafter. However, policy experts have raised concerns that this increase might not significantly benefit the 17 million children in families with lower incomes, many of whom miss out on the full credit due to insufficient earnings.
Representative Aderholt, head of the House Values Action Team, praised the legislation’s focus on the Adoption Tax Credit, which would become partially refundable up to $5,000, making it accessible to more families. He stressed that refundability would allow more children to find permanent homes without financial barriers.
The House is set to vote on the bill this week before it proceeds to the Senate for potential modifications.
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