The proposed bill introduces the Child Tax Credit Act, which establishes a refundable tax credit for taxpayers with qualifying children under the age of six. For taxable years starting on or after January 1, 2026, eligible taxpayers can receive a credit of $1,000 per qualifying child, with the amount subject to reduction based on the taxpayer's federal adjusted gross income. The bill also mandates annual inflation adjustments to the credit amounts and income thresholds starting in 2027. Additionally, the Department of Revenue is tasked with reporting on the usage of these credits annually, beginning in 2027.

Furthermore, the bill amends existing laws to exempt certain tax credit refunds, including those under the Child Tax Credit Act, from claims of creditors in bankruptcy and other legal processes. This ensures that families receiving these credits can retain their financial support without the risk of losing it to creditors. The bill also harmonizes various provisions related to tax credits and repeals the original sections of the statutes that are being amended.

Statutes affected:
Introduced: 25-1553, 77-2715.07