The Child Tax Credit

Publication Date: April 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

Type:

Abstract:

The child tax credit was enacted in 1997, as Congress addressed concerns that the income tax structure did not adequately reflect a family's reduced ability to pay taxes as family size increased. Subsequent changes in 2001, 2003, and 2004 increased the child tax credit and made it refundable for most families. These recent changes will sunset (expire) in 2011. The child tax credit is scheduled to decline from $1,000 in 2010 to $500 in 2011. Multiple bills affecting the child tax credit have been introduced in the 109th Congress. This report will be updated as legislative action warrants.