New CTC Payment in This State – $1,000 for Thousands of Eligible Citizens

This month, West Virginia announced significant legislative developments aimed at supporting families with children through an updated Child Tax Credit (CTC) initiative. This proposed legislation would allow families to claim a personal income tax credit equal to 50% of the federal Child Tax Credit, representing a substantial increase in financial assistance for parents in the state.

CTC Update Passed

On October 7, West Virginia’s House of Delegates passed the new CTC bill with an overwhelming 88-3 vote. With this strong backing, the bill now moves to the state Senate for approval. Should the Senate pass it, the legislation would apply retroactively, beginning January 2024, meaning that families’ 2024 taxes would qualify for the updated benefits.

Under this update, if a parent is receiving $1,000 in federal Child Tax Credit, they would qualify for an additional $500 state tax credit on their West Virginia income taxes. Governor Jim Justice has also proposed an additional $5 million investment focused on expanding childcare services across the state, emphasizing the importance of supporting families through various avenues.

Supporting Child Care

The push for enhanced child care support comes during a critical time for West Virginia’s child-care providers. This year, over 700 child-care facilities have closed, primarily due to unstable funding and staffing shortages linked to low wages. The state has been covering expenses for childcare centers through a federal enrollment-based subsidy program, but this subsidy is only guaranteed through the end of the year.

According to Delegate Kayla Young, affordable childcare remains difficult to access and highly expensive. She highlighted the importance of such financial support, stating, “there’s still much work to be done, and we need to support businesses, families, and employers.” With the CTC update, families may be able to afford childcare more easily, enabling both parents to stay in the workforce if they choose.

Challenges Facing the Bill

Despite widespread support, a few delegates voiced concerns about the bill’s long-term sustainability. Delegate Elias Coop-Gonzalez, one of the three to vote against it, expressed concern that the bill could favor one demographic over others. He argued that raising the standard deduction would allow parents more choice and flexibility in managing childcare expenses instead of targeting assistance to specific groups.

Although the new CTC update will not directly prevent further child care center closures, the additional funds will allow parents more options for alternative childcare solutions. However, Coop-Gonzalez acknowledged that while the extra income may benefit some families, it could offer limited help to those already facing high child-care costs.

Rising Child Care Costs

A broader issue remains: the high cost of child care. Today’s young adults often delay having children due to the significant financial burden associated with child care, paired with evolving societal expectations for raising children. This financial barrier makes it challenging for families to manage costs without substantial external support.

In response to the rising child care costs, many policymakers and community leaders are beginning to recognize the need for affordable childcare options as essential to strengthening family stability and economic growth. West Virginia’s new CTC update may be a positive model that encourages other states to tackle the issue, providing relief to families and improving access to childcare options.

As the bill advances through the Senate, West Virginia’s acknowledgment of the challenges facing parents is a hopeful step toward creating a more supportive environment for current and future families alike.

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