So it’s a Friday night in September and people are starting to get ready for bed. Sounds like a great time to publish a 645 page piece of tax legislation. Of course, this is just a proposal and there will be many changes in the days, weeks, and months to come. But why not take a look and see what’s in there.
I’ll be honest, at first glance, there is a whole lot of targeted credits and requirements that aren’t going to affect most Americans on a daily basis. It will have an impact on the things you buy, but not a direct impact on your life.
So what sticks out as something for average people? Yes, there are proposed changes to the child tax credit, but before we look at that, I thought this one was interesting”
Sec. 136407 – Credit for certain new electric bicycles
This refundable credit is 15% of the cost of an electric bicycle, up to $1,500 per year. Each taxpayer is limited to one per year and it starts to phase out at $75,000 modified adjusted gross income (MAGI) or $112,500 for heads of household and $150,000 for married filing joint. Amount other specifics, the cost can’t exceed $8,000.
Child Tax Credit changes
OK, I know this is the big one that most people are interested in, so go take a look for yourself. Remember these are just the proposed changes so there’s nothing set in stone at this point. The discussion of the changes to the credit starts on page 30 of this Section by Section guide to the legislation.
Click to access Section%20by%20Section%20Subtitle%20F%2C%20G%2C%20H%2C%20%26%20J.pdf
For some more insights into this legislation, take a look at Richard Rubin’s thread
Oh, yes, it's 645 pages of legislative text dropping at 10:21 pm on a Friday. https://t.co/ipH8hFu6rb
— Richard Rubin (@RichardRubinDC) September 11, 2021
But also make sure to take a look at his article on the Wall Street Journal.