Child Tax Credit Relief for Puerto Rican Families Act
The Child Tax Credit Relief for Puerto Rican Families Act, introduced Feb 27, 2025 by Representative Hernandez, seeks to provide equitable treatment for residents of Puerto Rico regarding the refundable portion of the Child Tax Credit (CTC). The bill would treat Puerto Rico residents more similarly to residents in the 50 states by incorporating Puerto Rico’s tax status (section 933) into the rules governing the refundable CTC and by revising how the refundable portion is calculated. It would apply to taxable years beginning after December 31, 2024 (tax year 2025 and later). In short, the bill aims to increase or otherwise improve access to the refundable portion of the CTC for Puerto Rico families with qualifying children, aligning their treatment with that of other U.S. taxpayers.
Key Points
- 1Adds section 933 to the framework determining the refundable portion of the Child Tax Credit, extending eligibility to residents of Puerto Rico.
- 2Applies to taxable years beginning after December 31, 2024 (i.e., starting with the 2025 tax year).
- 3Reforms the calculation of the refundable portion by altering how Social Security taxes are treated in the calculation, specifically by applying a new rule “twice” and removing references to “50 percent of,” which would increase the amount considered refundable.
- 4The changes are implemented by amending Section 24(d)(1) and Section 24(k)(2)(B) of the Internal Revenue Code.
- 5Sponsored by Mr. Hernandez and referred to the House Ways and Means Committee.