That’s how many years would be added to this year’s significantly boosted and overhauled child tax credit under a series of reforms proposed Wednesday by President Joe Biden.
If Biden’s American Families Plan is passed by Congress in its current form, it would extend through 2025 an increase in the child tax credit that currently only applies to tax year 2021. As a temporary measure in the latest pandemic relief bill, the credit was increased to $3,000 per child aged 6 to 17 and $3,600 per child under 6, up from the previous credit of $2,000 per child (which did not include 17-year-olds).
What’s more, the credit was made payable this year in monthly installments set to begin in July. A different provision of the expanded credit that made the credit “fully refundable,” and therefore fully available to millions more children in low-income households, would be made permanent under Biden’s new proposal. While the expanded credit would be available through 2025—the same year the 2017 law that increased it from $1,000 to $2,000 expires—the White House said Biden’s “ultimate goal” was making the expansion permanent.
The child tax credit extension is just one provision of Biden’s $1.8 trillion proposal that includes creating universal free pre-school, establishing a national paid family leave program, and increasing taxes on high-income earners, among other changes.