A WORD FROM CONGRESSMAN LAWLER ABOUT THE WORKING FAMILIES TAX CUT BILL

On July 4th, 2025, the Working Families Tax Cuts Bill was signed into law, delivering major tax relief for families across the Hudson Valley. That means families living in Westchester, Rockland, Putnam, and Dutchess counties will see the immediate impact, with the average family saving $3,293 a year in federal taxes, and some even more.

Families in our region face some of the highest living costs in the country. Between property taxes, housing costs, child care, and everyday expenses, too many hardworking New Yorkers are being stretched thin. This law helps ensure you can keep more of the money you earn, and with tax season approaching, I want to make sure you understand how this legislation can directly benefit you and your family.

Some of the ways this law provides relief are through: Raising the SALT Cap from $10,000- $40,000 Raising the cap allows families to deduct more of the state and local taxes they already pay, and keeping the Pass-Through Entity Tax (PTET) intact, which protects small-business owners from facing a sudden federal tax increase.

Making Middle-Class Tax Cuts Permanent Increasing the Child Tax Credit to $2,200 per child, creating a 20% deduction for small businesses, and a higher standard deduction, meaning most families pay taxes on less income.

Creating No Tax on Tips or Overtime Workers can now deduct up to $25,000 in tips from federal income taxes and up to $12,500 in overtime pay.

Creating Tax Relief for Seniors Seniors 65+ living on a fixed income will benefit by claiming an additional $6,000 tax deduction, with married couples deducting up to $12,000.

 
Helping Businesses Grow and Create Jobs Helps businesses invest and expand by allowing them to deduct the cost of equipment purchases, rather than spreading deductions over many years, making it easier for local companies to grow, hire workers, and invest in the Hudson Valley.

Supporting Housing and Local Investments -This law permanently strengthens the Low-Income Housing Tax Credit, New Markets Tax Credit, and Opportunity Zones, which help drive affordable housing and economic development in communities in the Hudson Valley.

 
Additional Relief for Families No tax on interest for new car loans on American-made vehicles, tax-free employer student loan repayment assistance, and expanded child-care tax credits to help working families manage costs.

Families across the Hudson Valley work hard and face one of the highest costs of living in the country. These tax reforms help ensure that working families, small businesses, and local communities can grow and succeed while keeping more of what they earn.

I am especially proud of the work alongside my colleagues in the SALT Caucus to secure meaningful relief for middle-class families who have been hit hard by the previous $10,000 cap. I remain committed to fighting for policies that lower costs, support our local businesses, and make life more affordable for families across the Hudson Valley.

I’m honored to serve as your Representative in Congress. If there is anything we can do for you or your family, please don’t hesitate to contact my office at 845-201-2060 or reach out through my website at lawler.house.gov. Additionally, you can keep up with the latest news on my efforts by following us on Facebook, Twitter, and Instagram - and by opting in to periodic updates from my office by CLICKING HERE.