The plan was announced on Tuesday after weeks of talks between Ways and Means Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR). The legislative plan builds upon the current tax credit, which was boosted by the 2017 Tax Cuts and Jobs Act, otherwise known as the Trump tax cuts.
The plan specifically expands the child tax credit by changing the calculation of the credit on a per-child basis to make it more generous. It also increases the maximum refundable amount per child to $1,800 in tax year 2023, $1,900 in 2024, and $2,000 in 2025.
Garrett Watson, a senior policy analyst at