Plans to expand the child tax credit have become a key talking point among Democrats and Republicans in Washington, D.C., in recent years, and now these proposals are receiving a major new spotlight during the 2024 presidential campaign.

Democratic nominee Vice President Kamala Harris first spoke about her vision for tax relief in an economic policy plan released just before Democratic National Conventionpromising credit that will bring much more to families with newborns. A key part of Harris’ plan also involves restoring the expanded child tax credit that was part of the 2021 American Rescue Plan. She expanded on her goals during her debate with former President Donald Trump.

“I have a plan” Harris said during the debate. “$6,000 for young families during the first year of your child’s life. To help you in this most critical stage of your child’s development.

Harris once again made note of her credit plans during a major speech in Washington, D.C., a week before Election Day.

“I’ve met so many young people who have a natural desire to raise their children well, but don’t always have the resources to do so,” Harris said. “So I will fight for a child tax credit to save them money… which would also lift America’s children out of poverty.

Trump, as well as his running mate, Sen. JD Vance, have expressed similar hopes for the credit increase. a recent New York Times report highlighted the disparity between their views and those of Harris.

Studies indicate that the temporary credit increase in 2021 had a significant impact on child poverty. Columbia University Center on Poverty and Social Policy found that the payments reduced monthly rates of child poverty by almost 30%, with payments benefiting around 61 million children.

Read on to find out how much Harris hopes to increase the child tax credit and how it compares to ideas put forward by her Republican opponents. For more information on the election, here’s how see if you are registered to vote And how to track official results in key states.

What is the child tax credit?

The child tax credit provides tax relief to parents for each child under the age of 17 that they claim as a dependent. First introduced in 1997, the credit currently offers $2,000 per child, of which only $1,600 is refundable, meaning you can receive this amount even if you don’t owe as much in taxes. The remaining $400 is non-refundable and can therefore only be used to reduce your tax burden.

In 2021, President Joe Biden’s American Rescue Plan was passed and resulted in substantial increases to the child tax credit. Under the law, the credit was expanded to pay $3,600 per child under age 6 and $3,000 per child ages 6 to 17. The credit was also fully refundable and partially payable as a monthly benefit.

What happened to the child tax credit after 2021?

After 2021, Congress did not renew the temporary tax break and the child tax credit returned to its previous levels, and it should fall further in 2025 to $1,000 per child.

Efforts to expand credit since 2021 have not been successful, including a Senate vote on August 1 this proposal failed by a vote of 48 to 44, with all but three Republicans voting against.

What is Harris’ plan to expand the child tax credit?

“We know that young families need support to raise their children,” Harris said during his debate against Trump. “And I intend to extend a tax cut to these families.”

Just before last month’s debate, the Harris campaign launched an official platform page on its official website, titled “A new way forward“, including a section on the vice president’s plan to “cut taxes for middle-class families.” The campaign highlighted Harris’ goal of expanding the child tax credit by up to $6,000 for families with a newborn under the age of one. did not delve further into the plan, Harris has discussed in the past restoring the credit to its 2021 levels for all other non-newborn children.

As part of this 2021 expansion, parents could apply for a credit of $3,000 for children aged 6 and over and $3,600 for children aged 2 to 5. It would further increase the credit amount for newborns to $6,000. The 2021 expansion removed work and income requirements so that eligible parents, regardless of income, could receive the full credit.

“(Harris and his running mate, Gov. Tim Walz) will also expand the child tax credit to provide a $6,000 tax cut for families with newborns,” the page states. “They believe that no child in America should live in poverty and that these actions would have a historic impact.”

Harris said she also plans to reinstate the Earned Income Tax Credit (EITC) for single and joint filers who do not claim children on their tax returns. The EITC is a refundable tax credit for low- and moderate-income workers.

Harris previously proposed covering the costs of that expansion and other parts of his economic plan by raising taxes on corporations and the wealthy. Like the The Committee for a Responsible Federal Budget has taken noteHowever, these proposed tax increases have not yet been clarified by the campaign.

What have Republicans proposed for the child tax credit?

Vance said in an Aug. 11 interview with CBS News that he would endeavor to increase the credit, if such a thing could be settled with Congress. The official Trump “Issues” page does not mention the child tax credit, suggesting in a single article to cut taxes in general terms.

“I would like to see a child tax credit of $5,000 per child,” Vance said. “But of course you have to work with Congress to see to what extent this is possible and viable.”

The child tax credit was increased from $1,000 to $2,000 in 2017 when Trump signed into law the Tax Cuts and Jobs Act, which expires in 2025. His 2024 campaign said in a comment to CNBC that Trump “will consider a significant expansion of the child tax credit,” but did not elaborate on his plans. A recent article on the fate of the New York Times child tax credit noted that Trump makes a point of boasting that during his administration he “doubled” the credit, however, the article explains that since Trump’s policy treats the policy more like a tax cut than a credit that does not no matter who may ask, it was not applicable for the poorest 25 percent of families who earned too little to file their taxes.

For more information on credit history, check out CNET’s History coverage on taxpayer eligibility and how it can be affected by shared custody agreements.