Congress expands tax credit for older workers still in the workforce
H.R. 2972 — EITC for Older Workers Act of 2025 · Filed by Mike Carey (R-OH) · 2 cosponsors · Introduced Apr 21, 2025 · Referred to committee
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What it does
This bill removes the age 65 upper limit on eligibility for the Earned Income Tax Credit (EITC), allowing workers aged 65 and older to claim the credit if they meet other income and work requirements. The change takes effect for tax years beginning after December 31, 2025, and expands a tax benefit currently available only to younger low-income workers.
Why we flagged it
The bill's sole operative mechanism is the removal of an age-based eligibility barrier to an existing refundable tax credit. It is a straightforward expansion of an existing public benefit with no hidden provisions or narrow carve-outs.
What the text implies
- Older workers who delay retirement or work part-time may see increased incentive to remain in the labor force, potentially affecting labor supply dynamics in low-wage sectors.
- The credit is refundable, meaning workers with zero or negative tax liability receive the full benefit as a payment from the Treasury — this is a direct fiscal cost to the government with no corresponding revenue offset in the bill.
The full analysis lists 3 implications of this text.
Who stands to gain
low-income workers aged 65+