District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0190 Compare Versions

Only one version of the bill is available at this time.

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7	7	March 3, 2023
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9	9	Nyasha Smith, Secretary
10	10	Council of the District of Columbia
11	11	1350 Pennsylvania Avenue NW
12	12	Washington, DC 20004
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14	14	Dear Secretary Smith,
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16	16	Today, I am introducing the District Child Tax Credit Amendment Act of 2023. Please find
17	17	enclosed a signed copy of the legislation, which is co-introduced by Chairman Mendelson and
18	18	Councilmembers Allen, Henderson, Lewis George, Nadeau, Pinto, R. White, and T. White.
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20	20	This bill is slated to go into effect during the 2024 calendar year and provide families greater
21	21	assistance to care for children. We know that raising the financial floor for families correlates
22	22	with stronger academic, health, and life outcomes.
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24	24	Qualifying individuals earning less than
25	25	$120,000 will receive $500 for each child (up to three children) via a child tax credit. Joint filers
26	26	earning up to $175,000 together can receive the credit. Additionally, there is no work
27	27	requirement for this benefit which boosts support for the District’s poorest children. What’s
28	28	more, in the District, where white households have 81 times the wealth of Black households
29	29	and 22 times the wealth of Latino households, the District Child Tax Credit will boost racial
30	30	equity and serve as a tool to close widening racial wealth gaps.
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32	32	These investments will significantly reduce the District’s child poverty rates. More money in the
33	33	pockets of low-and-moderate-income families will help ease the burden of high childcare costs,
34	34	which are estimated to amount to more than $2,020 per month on average. This proposal
35	35	builds on the DC Earned Income Tax Credit, and will serve as yet another tool to support District
36	36	children. If we are to improve outcomes for District youth, we must be more proactive in
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39	39	Center of Budget and Policy Priorities, “EITC and Child Tax Credit Promote Work, Reduce Poverty, and Support
40	40	Children’s Development, Research Finds” 2015. 6-26-12tax.pdf (cbpp.org) supporting children from birth -- the District Child Tax Credit serves as a critical tool in doing
41	41	that.
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43	43	Please contact my Legislative Director, Kendra Wiley at kwiley@dccouncil.gov if you have any
44	44	questions.
45	45
46	46	Sincerely,
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50	50	Zachary Parker
51	51	Ward 5 Councilmember
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57	57	___________________________ ______________________________ 1
58	58	Chairman Phil Mendelson Councilmember Zachary Parker 2
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61	61	___________________________ ______________________________ 5
62	62	Councilmember Charles Allen Councilmember Christina Henderson 6
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65	65	___________________________ ______________________________ 9
66	66	Councilmember Janeese Lewis George Councilmember Trayon White, Sr. 10
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69	69	___________________________ ______________________________ 13
70	70	Councilmember Brooke Pinto Councilmember Brianne K. Nadeau 14
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73	73	______________________________ 17
74	74	Councilmember Robert White 18
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78	78	A BILL 22
79	79	_________________________ 23
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81	81	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 25
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83	83	_________________________ 27
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86	86	To amend Title 47 of the District of Columbia Official Code to establish a District Child Tax 30
87	87	Credit. 31
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89	89	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 33
90	90	act may be cited as the “District Child Tax Credit Amendment Act of 2023”. 34
91	91	Sec. 2. Chapter 18 of Title 47 of the District of Columbia Official Code is amended as 35
92	92	follows: 36
93	93	(a) The table of contents is amended by adding a new section designation to read as 37
94	94	follows: 38
95	95	“§ 47-1806.17. Child Tax Credit.”. 39
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100	100	(b) A new section 47-1806.17 is added to read as follows: 40
101	101	“§ 47-1806.17. Child Tax Credit. 41
102	102	“(a)(1) For taxable years beginning after December 31, 2025, there shall be allowed 42
103	103	against the tax imposed by this chapter, for the taxable year, a deduction under section 151 of 26 43
104	104	U.S.C. §151 equal to an amount of $500 for each qualifying child for up to three children. 44
105	105	“(2)(A) The amount of the credit allowable under section (a)(1) shall be reduced 45
106	106	by $20 for each $1,000 (or fraction thereof) by which the taxpayer’s adjusted gross income 46
107	107	exceeds the threshold amount; except, that the reductions cannot reduce the credit below zero. 47
108	108	“(B) For purposes of this paragraph, the term “threshold amount” means: 48
109	109	“(i) $100,000 in the case of a single filer; and 49
110	110	“(ii) $145,000 in the case of a joint return. 50
111	111	“(3) A taxpayer shall not be eligible to receive a credit under this section if: 51
112	112	“(A) The taxpayer does not claim the eligible child as a dependent on the 52
113	113	taxpayer’s federal and District income tax returns for that taxable year; 53
114	114	“(B) A person other than the taxpayer claimed the eligible child as a 54
115	115	dependent on his or her federal and District income tax returns for that taxable year; and 55
116	116	“(C) The taxpayer has not resided in the District of Columbia for at least 56
117	117	one year prior to the date of filing. 57
118	118	“(4) A child may only be claimed once for purposes of the aforementioned tax 58
119	119	credit in a household filing jointly. 59
120	120	“(5) For each taxable year beginning after December 31, 2025, the limit per 60
121	121	qualifying child set forth in paragraph (1) of this subsection shall be increased annually pursuant 61
122	122	to the cost-of-living adjustment; except, that if the adjustment does not result in a multiple of $5, 62
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127	127	the increase shall be rounded down to the next multiple of $5. 63
128	128	“(b) The credit allowed under this section in a taxable year may exceed the taxpayer's tax 64
129	129	liability under this subchapter for that taxable year and shall be refundable to the taxpayer 65
130	130	claiming the credit. 66
131	131	“(c) In the case of a return made for a fractional part of a taxable year, the credit shall be 67
132	132	reduced to an amount that bears the same ratio to the full credit provided as the number of 68
133	133	months in the period for which the return is made to 12 months. 69
134	134	“(e) A lump sum payment or a periodic payment made pursuant to this section shall not 70
135	135	be considered income for the purpose of determining eligibility or benefit amount for public 71
136	136	assistance. 72
137	137	“(f) If a return is filed for a full calendar or fiscal year beginning after December 31, 73
138	138	2025, an individual who is a resident of the District but is not a citizen or resident alien of the 74
139	139	United States, who would otherwise be allowed the credit under this section but for the fact that 75
140	140	the individual is not a citizen or resident alien of the United States, shall be allowed a credit 76
141	141	against the tax imposed by this subchapter for the taxable year in the same amounts and to the 77
142	142	same extent as provided in this section. 78
143	143	“(g) For the purposes of this section, the term: 79
144	144	“(1) “Qualifying child” shall have the same meaning as provided in 26 USC § 80
145	145	24(c)(1). 81
146	146	“(2) “Cost-of-living adjustment” shall have the same meaning as provided in 82
147	147	D.C. Official Code § 47-3701(1)(A).”. 83
148	148	Sec. 3. Fiscal impact statement. 84
149	149	The Council adopts the fiscal impact statement in the committee report as the fiscal 85
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154	154	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 86
155	155	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 87
156	156	Sec. 4. Effective date. 88
157	157	This act shall take effect after approval by the Mayor (or in the event of veto by the 89
158	158	Mayor, action by the Council to override the veto), a 30-day period of congressional review as 90
159	159	provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 91
160	160	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 92
161	161	Columbia Register. 93