Bennet-championed Expanded Child Tax Credit Will Benefit 93% of Kids Living in Rural Colorado
Washington, D.C. – Today, Colorado U.S. Senator Michael Bennet highlighted a new report from the Center on Budget and Policy Priorities, which shows the disproportionately large effect the newly enhanced Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) will have on families and workers living in rural communities. The expanded tax credits were signed into law as part of the American Rescue Plan Act.
The expanded CTC, based on Bennet’s American Family Act, will benefit 93% of kids who live in rural Colorado. The expanded EITC, based on Bennet’s Working Families Tax Relief Act with U.S. Senator Sherrod Brown (D-Ohio), will benefit 17% of struggling workers without children living in rural Colorado. Nationally, the CTC and EITC expansions will benefit 94% of kids and 21% of workers without children living in rural areas, respectively. While the tax credit expansions benefit children and workers in both rural and urban areas, the expansions will have particularly large effects for rural communities.
“Our country’s long-term prosperity depends on a thriving rural America. Expanding the CTC and EITC is a historic investment that will not only benefit families and kids, but the institutions, businesses, and organizations that are the lifeblood of rural communities,” said Bennet. “If we’re serious about investing in rural communities, we must make these changes to the CTC and EITC permanent.”
The newly enhanced benefit raised the maximum CTC from $2,000 to $3,000 for all children under 18 years of age and $3,600 for young children under 6 years of age. Additionally, it expanded the credit to include families who previously earned too little to be eligible for the benefit. It also instructs the IRS to begin delivering the credit on a monthly basis starting in July of 2021.
The enhanced EITC for workers without children now includes young people aged 19 to 24 who were previously excluded, as well as older workers above age 64. It also triples the maximum credit from roughly $500 to $1,500.
Bennet first introduced the American Family Act in 2017 with U.S. Senator Sherrod Brown (D-Ohio). In the 116th Congress, the bill was reintroduced and cosponsored by 38 Senators as well as 188 members of the House, indicating a major show of support from across the Democratic caucus. In March, Bennet, Brown, and U.S. Senators Cory Booker (D-N.J.) and Raphael Warnock (D-Ga.) led 41 Senate Democrats in urging the Biden Administration to make these expanded tax credits permanent.
The full report is available HERE.