H.R. 2764: Tax Cut for Workers Act of 2025
Sponsor
Dwight Evans
Democrat · PA-3
Bill Progress
Latest Action · Apr 9, 2025
Referred to the House Committee on Ways and Means.
Quadruple the tax credit for childless workers
Why it matters
A full-time worker with no kids can earn too much for the Earned Income Credit yet too little to get more than a token break — the maximum base credit sits around $323. H.R. 2764 would double the credit rate from 7.65% to 15.3%, more than double the income the credit is figured on, and lower the eligibility age from 25 to 19. That pushes the maximum base credit to roughly $1,500.
Right now the Earned Income Credit does very little for workers without qualifying children. The credit is figured at a rate of 7.65% on the first $4,220 of earnings, which works out to a maximum base credit of about $323 before annual inflation adjustments. You also can't claim it at all until age 25, and you lose it once you turn 65.
H.R. 2764 changes every one of those numbers. The credit rate doubles to 15.3%, and the amount of earnings the credit is figured on jumps from $4,220 to $9,820. Together those two changes more than quadruple the maximum base credit, to roughly $1,500. The point where the credit starts phasing out also rises, from $5,280 to $11,610, so you can earn more before the benefit shrinks.
The bill opens the credit to far more people. The minimum age drops from 25 to 19, with an earlier start of 18 for young people aging out of foster care or experiencing homelessness, and a later start of 24 for full-time students. The age-65 cutoff disappears entirely, so older workers who are still on the job can keep claiming it.
Two more pieces round it out. Workers in Puerto Rico, American Samoa, and other U.S. possessions would keep their Earned Income Credit treatment permanently, instead of having it expire after 2025. And if your earnings drop in a given year — fewer hours, a layoff, a seasonal gap — you could choose to figure the credit on the prior year's higher earnings instead. Married couples filing jointly would add both spouses' prior-year earnings together. Misusing that prior-year option would be treated like a math error on your return, which lets the IRS correct it quickly.
H.R. 2764 Bill Summary
What H.R. 2764 actually does.
The childless-worker credit more than quadruples
The credit rate rises from 7.65% to 15.3% and the earnings the credit is figured on rise from $4,220 to $9,820. Run the math and the maximum base credit climbs from about $323 to roughly $1,500, before the annual inflation adjustment.
You can earn more before the credit phases out
The phaseout amount — the income level where the credit starts shrinking — rises from $5,280 to $11,610. That lets workers keep more of the credit as their earnings climb.
Eligibility starts at 19 instead of 25
The general minimum age for the childless-worker credit drops from 25 to 19. Full-time students would still need to be 24, while young people who aged out of foster care or are experiencing homelessness could claim it at 18.
The age-65 cutoff is removed
The bill eliminates the rule that ended eligibility for the childless-worker credit at age 65. Older workers who are still earning wages could continue to qualify.
Use last year's income if this year's is lower
If your earnings drop from one year to the next, you could elect to figure the credit on the prior year's higher earnings. On a joint return, the prior-year figure combines both spouses' earnings. Misuse is treated as a math error the IRS can correct quickly.
Permanent credit for Puerto Rico and the possessions
The bill removes the 2021-through-2025 expiration on Earned Income Credit treatment for Puerto Rico, American Samoa, and U.S. possessions with mirror-code tax systems, making it ongoing.
Who benefits from H.R. 2764?
Low-wage workers without kids
This is the core group. A single adult earning poverty-level wages currently gets a maximum base credit around $323; under the bill that rises to roughly $1,500 as the credit rate doubles and the income it's figured on more than doubles.
Workers ages 19 to 24
Today most workers under 25 without children can't claim the credit at all. The bill lets them in at 19 — and at 18 for those who aged out of foster care or are experiencing homelessness.
Workers over 65 who are still earning
The current rule cuts off the childless-worker credit at 65. Removing the cap means seniors who keep working could keep claiming it.
Workers with an income drop
Anyone whose earnings fall — cut hours, a layoff, a seasonal slowdown — could figure the credit on the prior year's higher income instead, softening the hit to their refund.
Workers in Puerto Rico and the possessions
Residents of Puerto Rico, American Samoa, and mirror-code possessions would keep their Earned Income Credit permanently rather than losing it after 2025.
Who is affected by H.R. 2764?
Full-time students under 24
Students stay under a stricter rule than other workers. While the general minimum age drops to 19, full-time students generally can't claim the childless-worker credit until 24 — unless they aged out of foster care or are experiencing homelessness, in which case it starts at 18.
The IRS
The agency would administer a larger childless-worker credit, the new prior-year income election, and permanent treatment for the possessions. Incorrect use of the prior-year option is classified as a math error, which the IRS can fix without a full audit.
Federal revenue
Expanding the credit and making it permanent reduces federal tax revenue. The bill text includes no cost estimate, and no CBO score had been published as of its introduction.
HR2764 Legislative Journey
House: Committee Action
Apr 9, 2025
Referred to the House Committee on Ways and Means.
About the Sponsor
Dwight Evans
Democrat, Pennsylvania's 3rd congressional district · 10 years in Congress
Committees: Ways and Means
View full profile →
Cosponsors (18)
All 18 cosponsors are Democrats. Cosponsors represent 13 states: Alabama, Arizona, California, and 10 more.
Ro Khanna
Democrat · CA
Yassamin Ansari
Democrat · AZ
Jasmine Crockett
Democrat · TX
Rosa DeLauro
Democrat · CT
Valerie Foushee
Democrat · NC
James McGovern
Democrat · MA
Jerrold Nadler
Democrat · NY
Eleanor Norton
Democrat · DC
Alexandria Ocasio-Cortez
Democrat · NY
Delia Ramirez
Democrat · IL
Linda Sánchez
Democrat · CA
Mary Scanlon
Democrat · PA
Committee Sponsors
Ways and Means Committee
3 of 45 committee members cosponsored
16 Democrats across this committee haven't cosponsored yet. Mobilize their constituents
What laws does H.R. 2764 change?
6 changes
Sections Amended
Section 32(c) of such Code
adding at the end the following new subparagraph: ``(F) Applicable minimum age
Section 32(b) of Internal Revenue Code of 1986
striking ``7
Section 32(j) of Internal Revenue Code of 1986
read as follows: ``(1) In general
Section 32 of such Code
adding at the end the following new paragraph: ``(3) Inflation amount
Section 32 of Internal Revenue Code of 1986
striking subsection (n)
Section 32(c) of Internal Revenue Code of 1986
adding at the end the following new subparagraph: ``(C) Election to use prior year earned income
H.R. 2764 Quick Facts
- Committee
- Ways and Means
- Chamber
- House
- Policy
- Taxation
- Introduced
- Apr 9, 2025
Referred to the House Committee on Ways and Means.
Apr 9, 2025
Official Sources
Official congressional page for the Tax Cut for Workers Act of 2025 with bill text, actions, and status.
IRS overview page for the Earned Income Tax Credit, the main tax provision expanded and made permanent by this bill.
Official IRS tool explaining who qualifies for the EITC, relevant to the bill's changes to age eligibility and childless worker rules.
IRS publication covering EIC rules, including income limits, eligibility, and filing details that would be affected by the bill.
Official U.S. Code page for Internal Revenue Code section 32, the statutory section this bill amends for the Earned Income Credit.
Official U.S. Code page for section 7530, which governs EIC application to Puerto Rico, American Samoa, and mirror-code possessions.
Official CBO portal for federal cost estimates, useful if a score is issued for this tax bill.
H.R. 2764 Common Questions
How much bigger would the EITC get for workers without kids?
A lot. H.R. 2764 doubles the credit rate from 7.65% to 15.3% and raises the earnings it's figured on from $4,220 to $9,820. That lifts the maximum base credit from about $323 to roughly $1,500, before the yearly inflation adjustment.
What's the new minimum age for the childless EITC under H.R. 2764?
The general minimum age drops from 25 to 19. Full-time students would still need to be 24. Young people who aged out of foster care or are experiencing homelessness could claim it at 18.
Does H.R. 2764 remove the age 65 limit for the childless EITC?
Yes. The bill eliminates the rule that ended the childless-worker credit at age 65, so older workers who are still earning wages could keep claiming it.
Can I use last year's income for the EITC if I earned less this year?
Yes. If your earnings drop from one year to the next, you could elect to figure the credit on the prior year's higher earnings. On a joint return, both spouses' prior-year earnings are added together.
Does the bill make the EITC permanent in Puerto Rico and American Samoa?
Yes. H.R. 2764 removes the 2021-through-2025 expiration on Earned Income Credit treatment for Puerto Rico, American Samoa, and possessions with mirror-code tax systems, making it ongoing.
When would the H.R. 2764 changes take effect?
Nearly all of them apply to tax years beginning after December 31, 2025 — meaning the 2026 tax year, with returns filed in early 2027. The bigger credit wouldn't show up on a refund until then.
Who introduced H.R. 2764 and what are its chances?
Rep. Dwight Evans (D-PA) introduced it with 18 cosponsors, all Democrats. It was referred to the House Ways and Means Committee. With one-party backing, its likely path is inside a larger tax package rather than a standalone vote.
Based on H.R. 2764 bill text
H.R. 2764 Bill Text
“To amend the Internal Revenue Code of 1986 to expand, and make permanent certain modifications of, the earned income credit.”
Source: U.S. Government Publishing Office
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