An Act Establishing A Refundable Child Tax Credit Against The Personal Income Tax.
If enacted, HB 5986 will positively impact state laws related to personal income taxes by introducing a new refundable tax credit. This credit would effectively reduce the tax liabilities for qualifying families, ultimately increasing their disposable income. The legislation seeks to ease the financial burden on households, potentially leading to improved economic stability for families in lower to middle-income brackets. The expected outcome is to encourage family growth and support children's needs through enhanced financial resources.
House Bill 5986 proposes to establish a refundable child tax credit against the personal income tax, aiming to provide financial relief to families with dependent children. This initiative is designed to offer a tax credit of $600 per child for eligible tax filers, specifically targeting those with an adjusted gross income of $100,000 or less for single filers and $200,000 or less for married individuals filing jointly. The bill reflects a growing trend among states to enhance support for families and promote child welfare through fiscal measures.
Notably, reactions to this bill may vary across political lines. Proponents argue that the refundable child tax credit is essential for supporting working families, particularly in light of rising living costs. Conversely, opponents may express concerns regarding the fiscal implications of reducing state tax revenue, particularly in times of budget constraints. As the bill moves through the legislative process, discussions around the sustainability and overall effectiveness of such tax credits in fostering long-term economic growth and family support will likely emerge.