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HR 2764119th CongressIntroduced
Tax Cut for Workers Act of 2025
Introduced: Oct 29, 2025
Economy & TaxesLabor & EmploymentSocial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Tax Cut for Workers Act of 2025 expands and permanently modifies the Earned Income Credit (EIC) by lowering eligibility age thresholds, removing the maximum age cap, increasing credit percentages, adjusting income limits, and extending benefits to U.S. territories.
Key Points
- 1Lowers EIC eligibility minimum age to 19 (or 18 for qualified former foster/homeless youth) and eliminates the 65-year-old maximum age limit.
- 2Doubles the EIC phaseout percentage from 7.65% to 15.3% and raises income thresholds for eligibility.
- 3Allows taxpayers to elect using prior-year earned income for credit calculation if their current income is lower, aiding those with fluctuating earnings.
Impact Areas
Low-income workersYoung adults aged 18-24Seniors over 65StudentsHomeless and foster youthResidents of Puerto Rico, American Samoa, and other U.S. possessions
Generated by legislative-analysis-v2 on Nov 4, 2025