Congress expands child tax credit for Puerto Rico families
H.R. 1697 — Child Tax Credit Relief for Puerto Rican Families Act · Filed by Pablo José Hernández Rivera (D-PR) · 1 cosponsor · Introduced Feb 27, 2025 · Referred to committee
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What it does
This bill amends the tax code to allow Puerto Rico residents to claim the full refundable child tax credit without the current limitations that apply to them. Currently, Puerto Rico residents face restrictions on how much of the child tax credit can be refunded to them; this bill removes those restrictions by referencing Section 933 (which provides tax benefits for Puerto Rico residents) and modifies the calculation method to eliminate a 50% cap, making the credit more generous for Puerto Rican families with children.
Why we flagged it
The bill's sole operative mechanism is to expand the refundable child tax credit for Puerto Rico residents by removing existing caps and limitations. It is a targeted tax benefit expansion, not a broader tax reform.
What the text implies
- The bill's effect depends entirely on the interaction between IRC §24 (child tax credit), §933 (Puerto Rico exclusion), and §24(k)(2)(B) (refundability calculation). The cited provisions are not quoted in the bill, so the precise scope of the benefit cannot be fully assessed from this text alone — readers must consult the underlying statute.
- The effective date (taxable years beginning after December 31, 2024) means the benefit applies retroactively to 2025 tax returns, potentially creating a significant revenue impact in the first year of implementation.
The full analysis lists 3 implications of this text.
Who stands to gain
Puerto Rico residents with dependent children; Puerto Rico families in lower-income brackets (refundable credits are most valuable to lower earners