# US proposes new rule to bar H-1B workers from tax credits 2026-08-20T00:59:46+00:00 | World & Diplomacy | Indian Opinion Desk Corroboration: 1 independent outlet The Trump administration has proposed regulations that could bar many H-1B visa holders from claiming refundable portions of four major federal tax credits, including the Child Tax Credit and Earned Income Tax Credit. The US Treasury Department and IRS announced the proposal to enforce the 1996 Personal Responsibility and Work Opportunity Reconciliation Act, which limits federal public benefits to US citizens, nationals and 'qualified aliens' such as permanent residents and refugees. Treasury Secretary Scott Bessent said the move aims to enforce existing law on access to public benefits. If finalised, the refundable portion of the Adoption Tax Credit, Child Tax Credit, American Opportunity Tax Credit and Earned Income Tax Credit would be unavailable to most temporary visa holders, including H-1B workers, unless they are married to a qualified alien. The proposed regulations have not yet taken effect. They would apply to tax years ending on or after the date of final publication. The Treasury Department will accept public comments before issuing a final rule. ## Indian Opinion Analysis The proposed rule revives a 1996 welfare law that Congress has never fully applied to tax credits, leaving a legal ambiguity that has existed for nearly three decades. If finalised, it would primarily affect Indian professionals on H-1B visas who pay US taxes but claim the Child Tax Credit or Earned Income Tax Credit for their dependents. With over 300,000 H-1B workers from India, the financial hit could run into hundreds of crores annually per family. The Treasury will now open a public comment period before issuing a final rule, a process that typically takes six to 12 months. The outcome will depend on how the IRS defines 'qualified alien' and whether Congress steps in to clarify the law. ## Coverage - greatandhra.com Leads with impact on H-1B families, quotes Treasury, sticks to proposed text without praise or criticism This story was synthesised by AI from the source linked above. Tags: Donald Trump, H-1B visa, Internal Revenue Service, US Treasury Department Canonical: https://indianopinion.org/us-proposes-new-rule-to-bar-h-1b-workers-from-tax-credits/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/us-proposes-new-rule-to-bar-h-1b-workers-from-tax-credits/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/