WeVote
Log In

Bill

Bill

LC 3865

Establish a child income tax credit

2025 Regular Session

Creates a state child income tax credit to reduce taxes for families with qualifying children; final amount, eligibility, and refundability to be defined in the bill.

(LC) Draft Ready for Delivery
#revenue #state #taxation(generally) #taxation--individualincome
0
WeVote Research Nonpartisan
Bill Summary · LC 3865

Bill Summary: LC 3865 — Establish a Child Income Tax Credit

Basic Information

  • Bill Number: LC 3865
  • Title: Establish a child income tax credit
  • Status: LC Draft Ready for Delivery
  • Introduced: December 15, 2024
  • Classification: bill
  • Subject: Revenue, State, Taxation (Generally), Taxation—Individual Income

Overview

LC 3865 proposes creating a state-level income tax credit designed to assist families with qualifying dependent children. The bill’s intent is to provide targeted tax relief to households with children, thereby reducing after-tax costs associated with raising children and potentially aligning state policy with federal Child Tax Credit concepts.

What is Known About the Bill (Key Provisions)

  • The bill would establish a state child income tax credit.
  • Specific mechanics are not included in the information provided. As such, details on:
    • Credit amount (per child, per family, maximum credit)
    • Eligibility criteria (age of child, number of qualifying children, residency, income thresholds)
    • Refundability (refundable vs. nonrefundable, or partially refundable)
    • Phase-ins/phase-outs by income
    • Interaction with the federal Child Tax Credit and other state tax credits
    • Carryforward provisions or annual applicability
    • Coordination with other tax provisions or programs
    • Administrative rules and enforcement are not available in the provided materials. The final text will specify these elements.

Affected Parties and Impacts

  • Primary beneficiaries: Taxpayers with qualifying dependent children who would claim the new credit on their state income tax return.
  • Government/State Revenue: The credit would reduce state tax liability for eligible taxpayers, impacting state revenue; magnitude depends on credit design (amount, eligibility, and optional refundability).
  • Tax Administration: May require administrative changes to tax forms, guidance, and compliance processes to implement the new credit.

Timeline and Procedural Status

  • 2024-12-15: Drafter Assigned; Draft On Hold
  • 2024-12-15 to 2025-03-26: Draft progressed through several stages (Hold, Legal Review, Edit)
  • 2025-03-26: Draft Taken Off Hold; in Legal Review and Final Drafter Review
  • 2025-03-27 to 2025-03-29: Draft in Edit, Input/Proofing, Final Drafter Review, Assembly
  • 2025-03-30: Draft Ready for Delivery
  • Note: These dates indicate a structured drafting process with multiple review stages and indicate the bill is moving toward formal delivery of the final draft for consideration.

What to Look for in the Final Text

  • Exact credit amount and structure (per child, per family cap, thresholds)
  • Eligibility criteria (ages, residency, income limits, filing status)
  • Refundability status and any carryforward provisions
  • Interaction with federal tax credits and other state credits
  • Administration details (how to claim, required documentation, compliance)
  • Effective date (retroactive, prospective, or tied to a specific tax year)
  • Sunset or review provisions (whether the credit is temporary or permanent, and review dates)

Next Steps

  • Monitor for release of the final draft to obtain precise provisions, including eligibility, amounts, and administration.
  • Analyze fiscal impact and potential distributional effects once numbers are specified.
  • Review for alignment with other tax policy goals and potential administrative needs.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.