The federal child tax credit expansion could gradually increase consumer spending in the state by more than $700 million according to a recent report from Hoosier Action and Community Change Action. The new policy is helping parents cover expenses they may not have been able to otherwise.
Under the tax credit, Hoosier parents can receive monthly cash payments from $250-$300 for children under 18. In the past, that credit would come when filing taxes.
Eva Bell is statewide moms organizer for Hoosier Action. She said having the option to get the money now has helped families across the state.
“So things that really help families do more than just survive,” said Bell. “Families getting the boost that they need, paying their mortgage, paying their car payment and not feeling so tight, or that they’re about to drown.”
The report also shows state and local governments in Indiana could receive more than $60 million in additional revenue from the new federal child tax credit. Bell said the numbers show the interconnection between families, children and the economy.
“So just seeing how many families it’s benefiting, is huge,” she said. “That’s a huge number for a state. And seeing how that actually plays into small businesses and stuff like that, it really shows that investing in families, really does invest in the future of the state.”
As of now, the child tax credit policy is set to expire at the end of the year unless Congress passes an extension.
Bell said it’s important for parents to tell lawmakers how the monthly child tax credit is helping them and their family. She said that will encourage them to make it permanent rather than ending this December.