ALEXANDRIA, VA – Today, the House Committee on Ways and Means approved critical tax legislation that would provide low-income children and their families with the resources necessary to help lift them out of poverty.

Among other provisions, the Temporary Tax Relief Act of 2007 (H.R. 3996) would increase eligibility for the child tax credit in 2008. Currently, the child tax credit is a refundable tax credit that allows families to receive a refund of 15 percent of their income that exceeds $12,050 in 2008. This legislation would lower the minimum floor to $8,500 for 2008. Lowering this floor would extend eligibility for the credit to 2.9 million additional families, while increasing refunds for approximately 10 million additional families.

“Last year, 28 million American children lived in low-income families, and this lack of economic security leads to many serious problems at home and at school. Investing in initiatives to help families overcome the barriers of poverty is common sense,” said Bruce Lesley, President of First Focus. “The child tax credit can make a dramatic difference in a low-income family’s budget and is essential to improving the health and well-being of children living in poverty. Increasing eligibility for this important tax credit will help nearly 3 million additional low-income families who need it most. Congress should swiftly enact this measure to fix the tax code before working Americans pay the price next year.”

Introduced by Ways and Means Chairman Charles B. Rangel, this short-term legislation complements an additional measure introduced by the Chairman that would provide a comprehensive, $1.3 trillion overhaul of the federal tax code, including several proposals that affect children and low-income families.

In addition, the legislation makes significant changes to the alternative minimum tax for 2008.