The U.S. tax code contains many preferences, such as tax credits, that lower the amount of taxes owed. Some of those tax credits are “refundable,” which means that people can receive payments from the government if the amount of their credit exceeds their other tax liabilities. CBO analyzes the effects on the economy and the federal budget of existing tax credits and possible changes to tax credits.
By providing financial support to households, businesses, and state and local governments, federal laws enacted in response to the 2020 coronavirus pandemic will offset part of the deterioration in economic conditions brought about by the pandemic.
