Senators Max Baucus and Harry Reid have introduced a tax extenders bill that would lower the income level to qualify for the federal Child Tax Credit (CTC) from the current $12,050 to $8,500, the same amount as in a House-passed bill. The Child Tax Credit is a credit of up to $1,000 to help families with the costs of raising a child. Under current law, the CTC is not properly indexed for inflation. As a result, many low-income families will become ineligible to receive the CTC unless Congress adjusts the eligibility threshold. Under the Senate bill, 34,848 Minnesota children would become eligible for the CTC and 120,715 children would receive a larger credit.
Congress is expected to vote on a final bill in September. The Center on Budget and Policy Priorities has a good issue brief if you want to read more about the CTC.