This bill, the Tax Cut for Workers Act of 2025, expands the Earned Income Credit (EIC) to make it more accessible and generous for low-income workers without children. It lowers the minimum age for the credit from 25 to 19 (with exceptions for students, former foster youth, and homeless youth), removes the maximum age limit, and increases the credit amount and income thresholds. The bill also adjusts these amounts for inflation and allows taxpayers to use their prior year’s earned income if it was higher, applying to taxable years starting after 2025. These changes extend the credit to U.S. territories like Puerto Rico and American Samoa without prior time limits.
This bill creates a 75% federal tax credit for individuals donating cash or securities to approved nonprofit charter school organizations. The credit is limited to 10% of adjusted gross income or $5,000 annually, and applies only to organizations meeting strict criteria (like 501(c)(3) status, performance-based state selection, and annual audits). It requires these organizations to spend 100% of donations on charter school creation/expansion within five years and caps total annual tax credits at $5 billion, allocated by state. The credit is designed to incentivize private funding for charter schools while ensuring accountability through spending rules and oversight.
The Working Waterfront Disaster Mitigation Tax Credit Act creates a 30% tax credit for businesses that invest in qualifying disaster mitigation projects on "working waterfront" property, such as commercial fishing facilities or boatyards. The credit covers up to $300,000 per year (adjusted for inflation after 2026) for projects designed to prevent flood, erosion, or storm damage using methods like structural elevation, floodproofing, or shoreline stabilization. To qualify, property must be used for water-dependent activities (e.g., commercial fishing or boating) with average annual gross receipts under $47 million and meet specific building code requirements for disaster resilience. The credit is limited to 10 years per business and applies to projects placed in service after 2025.
This bill establishes tax credits for individuals and corporations who contribute to scholarship granting organizations that provide educational scholarships for eligible students. The individual tax credit is limited to 10% of adjusted gross income or $5,000, while corporate credits are capped at 5% of taxable income. The bill defines "eligible students" as those from households with income not exceeding 300% of the area median gross income, and specifies that scholarships can cover tuition, materials, tutoring, and educational therapies. The bill includes a $10 billion annual cap on tax credits, with a first-come, first-served allocation system, and requires scholarship organizations to meet specific financial and operational standards.
HR 2932, the CLEAR Skies Act, creates a tax credit for producing unleaded aviation gasoline in the U.S. The credit provides $1.25 per gallon in 2026, phasing down to $1.05 per gallon by 2030, for fuel that is lead-free, meets aviation standards, and is produced domestically. Producers must register with the IRS and certify compliance with these requirements to claim the credit. The bill also mandates a GAO study to analyze price differences between leaded and unleaded aviation fuel and whether the tax credit benefits end-users. This policy directly affects U.S. aviation fuel producers and aims to accelerate the transition from leaded to unleaded aviation fuel.
The Affordable Housing Equity Act of 2025 increases tax credits for developers building housing designated for extremely low-income households. It allows developers to claim a 150% increase in the eligible tax credit basis for units where at least 20% of residents earn 30% of local median income or 100% of the federal poverty line. This change directly affects housing developers and low-income renters in qualifying projects by making such developments more financially feasible. The policy modifies existing tax credit rules under Section 42 of the Internal Revenue Code, applying to projects receiving credit allocations after the bill's enactment or with obligations after December 31, 2025.
HR 2800, the "Boost the Middle Class Act," increases the Earned Income Tax Credit (EITC) for low-to-moderate income workers and families. It raises the base credit amounts (e.g., from $6,330 to $13,629 for single filers) and expands the income thresholds where benefits phase out (e.g., from $11,610 to $24,992 for single filers), while adjusting inflation calculations to 2025. These changes directly benefit millions of working households, particularly those with children, by increasing refundable tax credits. The bill takes effect for tax years beginning after December 31, 2025.
The Working Families Housing Tax Credit Act creates a new tax credit to encourage the development of housing for working families, specifically targeting teachers, firefighters, police officers, veterans, and other hard-working Americans. It provides tax credits equal to 50% of the qualified basis for new buildings or 60% for rehabilitated buildings, with requirements that 40% or more of units be rent-restricted for households earning up to 180% of area median income. The credit period lasts 15 years, and buildings must maintain working families housing for at least 15 years after the credit period through a binding "extended working families housing commitment." The bill also authorizes $100 million in grants and loans for infrastructure projects in rural and exurban areas supporting qualified housing developments.
The Universal School Choice Act would create a federal tax credit for individuals and corporations that contribute to scholarship granting organizations. Individuals could claim a credit equal to 10% of their adjusted gross income or $5,000 (whichever is less), while corporations could claim a credit up to 5% of their taxable income. The credit would fund scholarships for qualified education expenses at public or private schools, including religious schools, with a $10 billion annual cap on total credits. Scholarship granting organizations would need to meet specific requirements, including verifying household income for low-income students and undergoing annual audits, while prohibiting government control over these organizations or discrimination against religious schools.
The Affordable Housing Credit Improvement Act of 2025 would reform the Low-Income Housing Credit program, which provides tax credits to developers of affordable housing. It would increase state allocations based on population with annual cost-of-living adjustments, modify tenant eligibility rules to allow higher income limits for some residents, and add protections for domestic violence victims in housing. The bill would simplify rules for rural and Native American housing projects, clarify credit eligibility requirements, and require greater transparency in program administration. These changes would directly affect developers, property owners, and low-income tenants in housing projects that receive LIHC tax credits.
