Sánchez votes to advance the Build Back Better Act out of the Ways and Means Committee
WASHINGTON – Congresswoman Linda T. Sánchez (CA-38), a senior member of the House Ways and Means Committee, voted to advance critical components of the Build Back Better Act. The Committee successfully marked up measures to deliver twelve weeks of paid family and medical leave to workers, combat climate change, cut taxes for working families, create jobs, and lower the cost of child care, health care, and other critical services, as well as measures on funding these priorities.
“The Build Back Better Act will drastically improve life for millions of working families in Southern California,” said Congresswoman Linda T. Sánchez. “I’m proud to say it contains several bills that I’ve fought for over the years, including new and expanded tax credits for family caregivers, low-income Americans, and independent music creators, as well as resources to combat loneliness and isolation for our seniors. House Democrats are committed to passing this historic legislation and delivering for the American people, and I look forward to the work ahead.”
The Ways and Means Committee’s portions of the Build Back Better Act will now be reported to the Budget Committee before consideration by the full House of Representatives. It includes the following provisions, all of which were championed by Congresswoman Sánchez:
Credit for Caring Act
This provision is based on bipartisan legislation introduced by Congresswoman Sánchez to create a new nonrefundable tax credit for family caregivers. Qualified caregivers would be eligible for a credit of up to $2,000 for qualified expenses during the taxable year through 2025 while caring for a qualified care recipient. The amount of the credit is equal to 50 percent of the qualified expenses paid by a caregiver up to $4,000, and is reduced by 1 percentage point for every $2,500 by which the taxpayer’s adjusted gross income exceeds $75,000.
This provision is based on a bipartisan bill introduced by Congresswoman Sánchez and supported a broad coalition of music creators to allow musicians, technicians, and producers to deduct 100 percent of recording production expenses in the year they are incurred, rather than in later years. It amends section 181 to permit taxpayers to treat as currently deductible expenses the cost of qualified sound recording productions not exceeding $150,000 in a taxable year. The bill defines qualified sound recording production as certain sound recordings produced and recorded in the United States. The provision expires on December 31, 2025 (the current section 181 termination date).
Mechanical Insulation Installation Incentive Act
The provision is based on legislation Congresswoman Sánchez has introduced for several Congresses. It provides a credit for up to 10% of the labor costs incurred by a taxpayer in installing mechanical insulation property on pipes and equipment to lower energy costs and consumption and support good-paying union jobs. The credit is available for costs paid starting in 2022 through the end of 2031.
Permanent Expansion of Dependent Care Assistance Program (Working Families Relief Act)
Congresswoman Sánchez has long introduced the bipartisan Working Families Relief Act, which would allow parents to save more money pretax for dependent care. A piece of this bill, which expanded the Dependent Care Assistance Program,was included in the American Rescue Plan. This provision makes permanent the American Rescue Plan increase in the exclusion for employer-provided dependent care assistance. Thus, the maximum exclusion is permanently increased to $10,500 ($5,250 in the case of a separate return filed by a married individual). These dollar amounts are indexed for inflation.
Low-Income Housing Renewable Energy Credit Act
This provision is based on legislation authored by Representatives Danny K. Davis (IL-07), Linda Sánchez (CA-38), Terri A. Sewell (AL-07), Steven Horsford (NV-04), Dwight Evans (PA-03), and Jimmy Gomez (CA-34) to bring the economic and environmental benefits of renewable energy to low-income individuals and communities. Drawing on the success in California of a clean energy program that helps hundreds of thousands of low-income residents in multifamily housing enjoy the cost savings and environmental advantages of solar energy, the bill would provide an enhanced Investment Tax Credit (ITC) to solar projects benefiting low-income residents. Property eligible for the credit including energy storage technology and interconnection property related to such solar property.
CTC Expansion for ITIN Holders
The Committee print extends the American Rescue Plan’s expansion of the Child Tax Credit through 2025, eliminates the Social Security Number requirement for the credit, and makes the credit fully refundable on a permanent basis.
Addressing SILO Act
This provision based on legislation sponsored by Congresswoman Sánchez, the Addressing SILO Act of 2021, requires the Secretary of Health and Human Services (HHS) to provide grants to eligible area agencies on aging (AAAs) or other community-based organizations to conduct outreach to individuals at risk for social isolation or loneliness, develop community-based interventions to mitigate loneliness and social isolation, connect at-risk individuals with social and clinical supports, and evaluate the effect of the programs developed and implemented in this bill.