Tax season can be an unsettling time for some folks. But this year, the new Working Families Tax Cuts (WFTC) law, which I proudly helped to craft last year, is set to deliver some of the largest tax returns in history for families and small businesses across Western Pennsylvania.

From employers to employees, from children to seniors, this legislation provides historic investments in Western Pennsylvania and the United States, both for today and for generations to come.

In Pennsylvania’s 16th Congressional District, the WFTC delivers a family of four an average additional $1,228 tax cut annually. That’s a major boost for families who were crushed by years of inflation, record-high energy prices and an uncertain housing market. This common sense, pro-growth tax policy provides the certainty that Main Street needs.

U.S. Rep Mike Kelly, R, 16th District

To put it simply: these new tax laws reward hard work. If you are an hourly employee who makes overtime or tips, this means keeping more of your hard-earned money through a lower tax bill or a higher tax refund this spring. The WFTC fulfills President Donald Trump’s promise to eliminate tax on tips and eliminate tax on overtime for hourly workers.

For small businesses, the law increases and makes the Small Business Deduction permanent. It also strengthens our local manufacturers by preserving over 12,000 industry jobs in Pennsylvania’s 16th District. Our region is home to one of the highest concentrations of small manufacturers in the country, according to the National Association of Manufacturers.

The law also contains my legislation that makes permanent and expands Opportunity Zones (OZ), which encourages private investment in low-income communities. Downtown Erie has been the national model for this program in recent years. To date, Opportunity Zones have spurred more than $150 million in private-dollar investment in downtown Erie with OZs generating more than $450 million in additional long-term capital investment. Perhaps most importantly: this legislation doesn’t spend a single cent of taxpayer money.

The Working Families Tax Cuts also makes historic investments in our youngest Americans. Not only does it increase the Child Tax Credit, which supports 40 million working families; it further expands the Child and Dependent Care Tax Credit to support hardworking parents.

During Tuesday’s State of the Union address, the President also highlighted new “Trump Accounts.” The initial $1,000 investment will jump-start an account for every child born over the next four years. The fund grows tax-free until the child reaches adulthood, and parents can choose to add or not add to it. Either way, that $1,000 will grow over time. It’s a pro-growth, pro-family policy that is designed to give kids from all backgrounds and income levels a nest egg to use for college or skills training, start a business or even use for a down payment on a home.

The WFTC means no tax on Social Security for many seniors around the area. By raising the standard deduction, 88% of all seniors who receive Social Security will pay no tax on their Social Security benefits, according to analysis from the White House Council of Economic Advisers.

The Working Families Tax Cuts law is putting the tax code to work for Pennsylvanians this year. But perhaps most importantly, it’s what the law did not include that may make the biggest difference. The WFTC prevented a 22% tax increase for the average American taxpayer.

The new law builds upon the success of the 2017 Tax Cuts and Jobs Act (TCJA) by making many of those tax cuts permanent. After TCJA was enacted, the law produced robust wage growth and the lowest unemployment rates in a half-century. But many of these tax cuts were set to expire at the end of 2025. Through the WFTC, lower tax rates will remain in place and bigger returns are on the way this tax filing season.

Thanks to President Trump and congressional Republicans, more Americans will be able to keep more of their hard-earned money. Families will be able to save more money for their future. Business owners can hire that additional employee or make a capital investment in their company without juggling the burdensome, overregulated policies Washington throws at them.

Before serving in Congress, I spent my entire professional life in the private sector. There were times when our family business would have enough money to pay our employees, but not enough money to pay ourselves. It’s a reality so many small business owners face.

I’m also a father of four and a grandfather of 10. I think about their future and what we in Congress can do to make it a brighter, more prosperous one.

The Working Families Tax Cuts address all these things. It’s a game changer for Americans across the board. By making these historic investments today, we are shaping a brighter future for tomorrow.

U.S. Rep. Mike Kelly is a Republican representing Pennsylvania’s 16th Congressional District. He serves as the Chairman of the Ways & Means Subcommittee on Tax and serves on the Subcommittee on Health.