HR 1753 creates two new tax credits to support local journalism and small businesses. It offers a 80% credit (up to $5,000) for eligible small businesses (with <50 full-time employees) that advertise in qualifying local media like community newspapers or FCC-licensed radio/TV stations, reducing to 50% ($2,500 max) after the first year. A separate credit provides 50% (then 30%) of wages paid to local news journalists (at least 200 hours quarterly) for employers whose primary income comes from local newspaper publishing, capped at $12,500 per journalist per quarter. Both credits expire after 5 years and require strict definitions of "local" media to qualify, including having in-community journalists and limiting corporate ownership. The bill directly affects small local news publishers and qualifying small businesses seeking tax relief for local advertising and journalism staffing.
HR 1427 increases the federal adoption tax credit from $10,000 to $25,000 per child for both general adoptions and adoptions of children with special needs, effective for tax years beginning after December 31, 2024. It also creates a new tax credit for qualified in vitro fertilization (IVF) medical expenses, allowing taxpayers to claim a credit for IVF-related costs paid during the tax year. The bill includes a new inflation adjustment mechanism for the adoption credit starting in 2025 and specifies that IVF credit expenses cannot be claimed for other deductions or credits. This legislation directly affects individuals adopting children or undergoing IVF treatments who itemize deductions on their federal tax returns.
The Strong Start Act creates a new $3,000 tax credit for eligible parents with new children (born, adopted, or placed with them after enactment), paid within 30 days of claim. It establishes "American Dream accounts" for children with additional government contributions: $750 for EITC-eligible families (plus any personal contributions up to $250) and $500 for other families, both adjusted for inflation. The bill renames "Trump accounts" to "American Dream accounts" throughout the tax code and includes provisions for automatic enrollment of eligible families into these accounts. It also ensures account funds are disregarded for means-tested programs like Supplemental Security Income, with limited exceptions for SSI benefit calculations.
HR 1827, the Child Care Availability and Affordability Act, increases tax benefits for families with child care needs and employers providing child care. It raises the employer child care credit from 25% to 50% of expenses with a maximum credit of $500,000 (up from $150,000), and creates a new household and dependent care credit allowing families to claim up to 50% of eligible child care expenses, with the credit amount reduced as income increases, up to $8,000 for multiple children. The bill directly affects working parents with children under 13 or dependents needing care, as well as employers offering child care benefits. Key provisions include expanded credit amounts, new definitions for qualifying care, and special rules for small businesses.
This bill increases tax credits for rehabilitating historic buildings in rural areas. It creates a new "applicable rural project" category: affordable housing projects get a 40% credit on rehabilitation costs (up to $5 million total), while other rural projects get a 30% credit. The credit can now be transferred to other taxpayers, unlike previous rules. It specifically targets buildings in areas outside cities over 50,000 people or adjacent urban zones, and requires affordable housing projects to maintain housing affordability standards. The changes apply to property placed in service after December 31, 2025.
HR 6824 creates a 10% federal tax credit for businesses installing qualifying combined heat and power (CHP) systems. The credit applies to systems meeting strict efficiency standards (over 60% energy efficiency), producing at least 20% thermal energy and 20% electrical/mechanical power, with construction starting after December 2024. Systems over 50 megawatts electrical or 67,000 horsepower mechanical capacity are excluded, and bonuses of 10% more credit apply for domestic content or projects in designated energy communities. This credit directly affects businesses investing in new CHP infrastructure, reducing their tax liability based on the system's cost.
HR 1426 increases two federal tax credits to help families with childcare costs. It raises the household care credit from $3,000 to $6,000 per child (and $6,000 to $12,000 for two or more children) and the employer-provided childcare credit from $150,000 to $400,000. These changes directly benefit working parents who pay for childcare and employers who offer on-site childcare programs. The increased credits apply to taxable years starting after the bill’s enactment. This is a concrete policy change that lowers tax burdens for eligible households and businesses.
HR 137, the TCJA Permanency Act, makes permanent many tax provisions from the 2017 Tax Cuts and Jobs Act. It permanently increases the standard deduction for individual taxpayers, modifies income tax brackets, and makes permanent the child tax credit increase. The bill also permanently limits deductions for state and local taxes, mortgage interest, and miscellaneous itemized deductions. These changes affect most individual taxpayers who file federal income tax returns.
This bill creates a 50% tax credit for qualified infertility treatments, allowing eligible individuals to reduce their federal income tax by half their eligible expenses. It directly affects people diagnosed with infertility or those needing fertility preservation (e.g., before cancer treatment) who pay for physician-provided care. The credit is capped at $5,000 annually (adjusted for inflation), phases out for taxpayers with adjusted gross income over $40,000, and cannot be claimed if expenses are covered by insurance or other programs. The credit applies to tax years beginning after December 31, 2024.
This bill allows residents of Puerto Rico to claim the refundable portion of the federal child tax credit, which they are currently excluded from. It amends the tax code to include Puerto Rico residents in the calculation of this credit, removing their current exclusion. The key change modifies Section 24(d)(1) of the Internal Revenue Code to treat Puerto Rico as eligible for the refundable credit, similar to U.S. states. The changes take effect for tax years beginning after December 31, 2024, directly benefiting Puerto Rican families who qualify for the credit.
