The Tax Cut for Workers Act of 2025 expands the Earned Income Tax Credit (EITC), a tax benefit for low-income workers, by making it more generous and available to more people. The bill lowers the minimum age to claim the credit to 19 (or 18 for homeless youth and former foster youth, and 24 for students), removes the current age cap of 65, and doubles the credit rate from 7.65 percent to 15.3 percent while increasing income thresholds that determine eligibility. The legislation also extends EITC benefits to U.S. territories like Puerto Rico and American Samoa and allows workers whose income drops to use their prior year's higher income to calculate the credit. These changes take effect starting in 2026 and will be adjusted annually for inflation, benefiting millions of low-wage workers and young adults entering the workforce.
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