Statement from Congressman Dan Goldman on the Passage of the Bipartisan Tax Plan and Expansion of the Child Tax Credit and Low-Income Housing Tax Credit

Washington, DC – Congressman Dan Goldman (NY-10) today released the following statement on the passage of the Bipartisan Tax Plan, which included vital provisions to improve the Low-Income Housing Tax Credit (LIHTC) and fund the Child Tax Credit (CTC).

“Last night, I voted to pass the Bipartisan Tax Plan to deliver real relief to families across New York and across America.

“I am proud that I successfully pushed for the inclusion in this bill of the Low-Income Housing Tax Credit, which can spur the creation of hundreds of thousands of desperately needed affordable housing units in New York City and throughout the state.  During the pandemic, the Child Tax Credit proved to be the most successful program ever to reduce child poverty, and this bill boosts the program enough to pull nearly half a million children out of poverty and help our working families put food on the table.

“This bill is a win for New York families – but there is still more work to be done. Our lowest-income families deserve this critical assistance, and we must restore the larger benefits from the American Rescue Plan. I remain laser focused on fighting for these improvements to support our working families and ensure family has a home and every child has the resources necessary to succeed.”

The LIHTC is considered the federal government’s primary tool for financing the development of affordable housing. Since the program’s creation in the 1980s, the LIHTC has financed over 3.7 million homes nationwide. By reviving an expired 12.5% increase in the amount of money allocated to states and lowering the financing threshold for issuing Private Activity Bonds, the Bipartisan Tax Plan will spur meaningful investment in affordable homes across New York City and significantly increase affordable housing inventory in the City and nationwide.

The Child Tax Credit currently provides relief to working families by giving a qualified tax credit to tax filers with children. However, as currently structured, the tax credit gives more benefits to high-income families than low-income families. The Bipartisan Tax Plan increases the refundable Child Tax Credit for low-income families who pay little to no taxes and allows these families to receive more credit for each additional child. The bill would also make the Child Tax Credit adjustable for inflation. By providing a larger tax refund to low-income families and ensuring they receive money for each additional child in their household, the tax plan provides critical relief to low-income families with multiple children.

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