Tax Cut for Workers Act of 2025
Rep. Evans Introduces Bill to Permanently Expand Tax Credits for Millions of Low-Wage Workers
The Tax Cut for Workers Act of 2025 is currently in the early stages of the legislative process. It was recently introduced and sent to the House Committee on Ways and Means for review. No further actions are scheduled at this time, so the bill is currently waiting for committee consideration.
Part of: story →Legislative Progress
This bill is a Democratic priority that lacks support from the current House majority. It would likely need to be part of a much larger bipartisan deal to have a chance of passing.
Key Points
- The bill permanently expands the Earned Income Tax Credit (EITC) for workers without qualifying children, making temporary pandemic-era improvements a lasting part of the tax code starting in 2026.
From policy text
“To amend the Internal Revenue Code of 1986 to expand, and make permanent certain modifications of, the earned income credit.”
View in full text - The minimum age to claim the credit drops from 25 to 19 for most workers, to 24 for students, and to 18 for former foster youth and homeless youth. The maximum age cap of 65 is eliminated entirely.
From policy text
“is amended by striking ``age 25'' and inserting ``the applicable minimum age''”
View in full text - The credit percentage doubles from 7.65% to 15.3%, and the earned income threshold more than doubles from $4,220 to $9,820, significantly increasing the maximum credit available to childless workers.
From policy text
“is amended by striking ``7.65'' each place it appears and inserting ``15.3''”
View in full text - Workers who had a drop in income can elect to use the prior year's earnings to calculate their credit, protecting people who lost a job or had their hours cut from getting a smaller refund.
From policy text
“If the earned income of the taxpayer for any taxable year is less than the earned income of the taxpayer for the preceding taxable year, the credit allowed under subsection (a) may, at the election of the taxpayer, be determined by substituting--”
View in full text - The bill extends these EITC benefits permanently to U.S. territories including Puerto Rico, American Samoa, and possessions with mirror code tax systems, removing the 2025 expiration date.
From policy text
“is amended by striking ``in the case of calendar years 2021 through 2025,''”
View in full text - All changes take effect for tax years beginning after December 31, 2025, with built-in inflation adjustments so the credit keeps pace with rising costs over time.
From policy text
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
View in full text
Impact Analysis
Personal Impact
State Impacts
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articlesDemocrats Propose 'Tax Cut for Workers Act' to Expand EITC for Childless Adults
Senator Brian Schatz and Representative Dwight Evans introduced the Tax Cut for Workers Act of 2025 today. The bill seeks to triple the EITC for childless workers and remove the age 65 cap, aiming to provide permanent relief to millions of low-wage Americans currently taxed into poverty.
Shapiro urges qualifying taxpayers to apply to new state tax credit program
Governor Josh Shapiro touted the Working Pennsylvanians Tax Credit, a state-level program modeled after the federal EITC expansion passed in 2025. The federal change now allows workers as young as 19 and those over 65 without children to claim the credit for the first time.
Source Information
Document Type
Congressional Bill
Official Title
Tax Cut for Workers Act of 2025
Data Sources
Sponsor
Cosponsors
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