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Washington, DC – Today, Congresswoman Jennifer Wexton (D-VA) voted to pass bipartisan tax legislation that delivers critical wins to hardworking families and businesses in Virginia’s 10th District, including an expansion of the Child Tax Credit (CTC).

"I'm proud to vote to pass this bipartisan tax package which will deliver a tax cut for middle class families with kids, putting money back into the pockets of Virginians to help them afford the things they need like gas, groceries, child care, and other daily essentials," said Rep. Wexton. "Throughout this Congress, I've fought to expand economic opportunity for families across our Commonwealth, and while this Child Tax Credit expansion is not as extensive as I would prefer, the families of an estimated 17,000 children in our district will see meaningful and much needed relief. This is a win for families, as we continue to build on the progress of our strong economic recovery."

The compromise bipartisan, bicameral package includes an expansion of the Child Tax Credit, which Wexton has fought for this Congress. While Republicans rejected a more extensive expansion of the CTC, as it had been during the COVID crisis which cut child poverty in half, this legislation would deliver meaningful relief for an estimated 17,000 children in Virginia’s 10th District. 

Specifically, the bill expands the CTC and delivers tax relief by:

• Increasing the maximum refundability of the credit, allowing low-income families to receive more of the credit than they were able to previously.
• Giving eligible families the option to use their earned income from the prior year to calculate their credit, benefiting taxpayers whose income may have fallen from one year to the next.
• Modifying computation of the refundability to be on a per-child basis, meaning more low-income families with multiple children will qualify for a higher credit.
• Adjusting the credit for inflation starting in 2025, keeping pace with the cost of living.

In addition to expanding the Child Tax Credit, the bipartisan tax package will spur spending on domestic research and development by businesses, by allowing businesses to deduct those expenses immediately. It will lower the cost of housing by enhancing the Low-Income Housing Tax Credit, which will help develop more than 200,000 affordable housing units. It will provide tax relief to taxpayers who have been the victims of natural disasters. And it will alleviate double-taxation on cross-border investment, allowing for a Tax Agreement with Taiwan, strengthening our economic partnership.

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