- Effective January 1, 2029, decreases from $3,000 (1 child) and $6,000 (2 or more children) to $2,000 and $4,000, respectively, the amount of expenses a single parent can take into account for purposes of calculating the §21 dependent care credit, while increasing from $3,000 and $6,000 the amount of expenses a married couple can take to $4,000 and $8,000.
- Any child born more than one year after enactment of the Child Advancement and Ditch Elimination Act of 2027 (“CADE”) will not be taken into account for purposes of the child tax credit under §24 unless the child is of a parent who is married and files a joint return.
- Effective January 1, 2029, Code §32, relating to the earned income credit, is revised by: (a) decreasing the credit percentage from 34, 40, 45 and 7.65 to 23, 27, 30 and 5 for 1 qualifying child, 2 qualifying children, 3 or more qualifying children and no qualifying children, respectively; (b) decreasing the phaseout percentage from 15.98, 21.06, 21.06 and 7.65 to 12, 16, 16 and 5 for 1 qualifying child, 2 qualifying children, 3 or more qualifying children and no qualifying children, respectively; (c) increasing the earned income amount (limitation) from $6,330, $8,890 and $4,220 (all prior to indexing for inflation) for 1 qualifying child, 2 or more qualifying children, and no qualifying children, to $15,000, $21,000 and $10,000, respectively; and (d) subject to the following sentence, increasing the phaseout amount from $11,610, 11,610 and $5,280 (all prior to indexing for inflation) for 1 qualifying child, 2 or more qualifying children, and no qualifying children, to $30,000, 30,000 and $13,600, respectively. The increased phaseout amount for married persons filing jointly is increased from $5,000 to $20,000. Also, any child born more than one year after enactment of CADE will not be taken into account for purposes of the earned income tax credit under §32 unless the child is of a parent who is married and files a joint return. Also, the earned income tax credit will be taken into account when calculating supplemental nutrition assistance program (SNAP) benefits. Finally, the credit is phased out over 2032-2049, in 10 percent increments every 2 years.
- Effective January 1, 2029, with respect to Obamacare tax credits under §36B, any child born more than one year after enactment of CADE will not be taken into account for purposes of the tax credit unless the child is of a parent who is married and files a joint return.
- After 2029 except where otherwise noted, SNAP benefits and eligibility (under 7 U.S.C. §2011 et seq.) are revised as follows: (a) increases from 60 to 65 the age at which someone is considered elderly (and thus is more likely to receive benefits); (b) eliminates from inclusion in the total household number any child born more than one year after enactment of CADE unless the child is of a parent who is married; (c) instead of a unlimited exemption, requires retirement accounts in excess of $500,000 to be taken into account for asset limit calculations; (d) after 2029, 30 hours of weekly work are generally required by the head of the household; (e) to provide a reasonable phase-out range, (i) increases the household income limit to 120% of the poverty line and the gross income limit from 130% to 150% of the federal poverty level and (ii) reduces the ordinary benefit amount (i.e., allotment) if household net income is greater than 80% of the poverty level by 2.5 percentage points for each one percent (1%) of the poverty level amount or portion thereof by which household net income exceeds 80% of the poverty level.
- Section 8 housing vouchers (under 42 U.S.C. §1437f) are eliminated after 2031.
Note: Individuals taking advantage of the amnesty provisions of the Practical Immigration Reform Act of 2027 are not eligible for any refundable credits and also are not eligible for low-to-moderate income entitlements, including Medicaid and SNAP benefits.