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 beginning on or after January 1, 2026, eligible taxpayers can receive a credit of up to $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.

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 collection processes. This ensures that families receiving these credits can retain their financial support without the risk of garnishment or attachment. The original sections of the statutes being amended are also repealed as part of this legislative update.

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