Despite the fact that the increased child tax credit will expire at the end of 2021, Vermont intends to provide a benefit to families with young children of its own.
the Vermont House of Representatives recently adopted a $50 million tax relief proposal, which would provide most families with children aged six and younger with $1,200 per child.
Vermont’s child tax credit, which is designed after the federal child tax credit, would benefit approximately 50,000 children if it were implemented.
Under the American Rescue Plan of 2021, qualifying taxpayers received early payments of up to half of the 2021 child tax credit in the form of cash payments.
From July through December, the vast majority of qualified families received monthly payments of $250 or $300 per child.
Families can still claim these benefits, as well as the remaining half of the CTC when they file their taxes for the year 2021.
According to VTDigger, lawmakers want to attract more individuals to the state and reverse the state’s demographic patterns by enacting new legislation.
Rep. Scott Beck stated that the primary reason he is supporting this legislation is that it addresses “the most serious problem facing the state of California.”
Insufficient children are being born because the birth rate is too low. We are far too old for this. “And this is a direct attack on that issue,” he explained.
Parents with young children are less likely than other parents to have greater salaries, according to VTDigger.
According to some research, monetary gifts to low-income moms may even have a beneficial effect on the brain development of their children.
During a floor statement on Feb. 8, Rep. Emilie Kornheiser stated, “Bypassing the Vermont Child Tax Credit, we’re conveying plainly and firmly here that Vermont cares about kids and families — that this is the place where you can make it work.”
the benefit begins to phase off for taxpayers earning more than $200,000 each year, regardless of their filing status.
In an interview with Vermont Business Magazine,
Speaker of the House Jill Krowinski stated that “H.510 will provide needed relief for Vermonters to make payments on their mortgage or rent, buy food and basic necessities, pay for child care, and so much more.”
“H.510 will provide needed relief for Vermonters to make payments on their mortgage or rent, buy food and basic necessities, pay for child care, and so much more.”
According to WCAX, the bill is now on its way to the Senate, where it is anticipated to be taken up this week, according to the station.