May 20, 2004—Today the House passed H.R. 4359, the "Child Credit Preservation and Expansion Act of 2004," which extends the child tax credit that was set to expire at the end of this year. U.S. Representative Trent Franks voted in favor of this legislation that passed by a vote of 271 to 139. 

“One of my greatest commitments in this Congress is to help America build strong and stable families. It is strong and stable families that build America.  I am so grateful for the courage of this Congress and of our President who recognizes that hard working families spend their money on behalf of their children better than the government ever could.”

Last June, the Jobs and Growth Tax Relief Reconciliation Act, signed into law by President Bush, increased the per child tax credit by accelerating provisions scheduled to take effect in later years. Families with children received just $600 per child in 2003 and 2004.  The new law, HR 4359, increases the per child tax credit to $1,000 for 2003 and 2004 for more than 25 million working family households.  Additionally, it prevents a tax increase of $610 on 30 million taxpayers with 49 million children.

This legislation will allow refunds of the credit up to 15 percent of earned income over $10,750 a year.  The increase is scheduled to take effect next year under current law.  It also makes the child tax credit available to more military families. The bill allows combat pay to be treated as earned income for the purposes of calculating the refundable portion of the child credit.