Dear Neighbor,

This week, I attended President Trump's State of the Union Address in Washington. He recapped the successes of his first year back in the White House, including the positive impacts the Working Families Tax Cuts are already having on families and small businesses across the country.

America is stronger, more prosperous, and more respected around the world than it was just one year ago. As we look forward to our Nation's 250th anniversary, I look forward to continued work with President Trump to address the critical issues facing the American people.

In this week's newsletter:

• How the Working Families Tax Cuts are helping Pennsylvanians
• Join us for our upcoming telephone town hall
• Meeting Marc Fogel in Washington
• Momentum Builds for American Innovation Act
• Supporting Pennsylvania's youngest farmers

How the Working Families Tax Cuts are helping Pennsylvanians

In President Trump's first year in office, his America First agenda have restored American greatness both at home and abroad. I was honored to work with the President to craft common sense, pro-growth tax policy in the Working Families Tax Cuts, which are now delivering historic returns for hardworking Pennsylvania families.

Here are just some of the fast facts about the legislation:

• Largest Tax Refund Filing Season Ever: Thanks to the Working Families Tax Cuts, taxpayers could get an average of $1,000 MORE in their tax refund this tax filing season. Refunds could total almost $4,000 per person on average, putting more money back in the pockets of working families. Average refund amounts are up 14% so far this tax filing season.
• No Federal Tax Liability for Working Families: A family of four with two children earning up to $73,000 could have no federal tax liability because of the bigger standard deduction and bigger Child Tax Credit
• No Tax on Tips: Waitresses, barbers, bellhops, and other tipped professions could see their taxes cut $1,300.
• No Tax on Overtime: Welders, linemen, factory workers, and over workers earning overtime could see their taxes cut $1,400.
• No Tax on Social Security: 88% of seniors receiving Social Security benefits will pay no tax on their benefits under the WFTC. 
  $6,000 deduction for seniors 65+/$12,000 for married couple
• Trump Accounts: Each newborn baby is eligible to receive a $1,000 in an investment account to support that child’s future.
• Bigger Child Tax Credit: Credit increased to $2,200 per child and indexed to inflation so the credit never loses value.
• Bigger Standard Deduction: Boosted to $31,500 for a married family, making tax filing simpler for the 91% of taxpayers who use this deduction.
• Childcare Relief Lowers Costs: More access to the Adoption Tax Credit, Paid Leave Tax Credit, Child/Dependent Care Credit, and Employer-Provided Childcare Credit help lower the cost of parents taking care of their families.
• Small Businesses: Permanency of the 20 percent small business deduction allows 30 million small businesses to make payroll, hire new employees, and expand their business. 
  20 percent small business deduction will create an estimated 1 million new small business jobs each year over the next 10 years and 2 million each following year.
• Tax Relief for Rural America: Two million family farms will benefit from an increased Death Tax exemption.
• Manufacturing Boom in America: President Trump’s 100% expensing for new factories, in addition with permanence of other pro-growth tax policy, will fuel a manufacturing boom. 
  Over 1 million manufacturing jobs are estimated to be protected or created thanks to the Working Families Tax Cuts. 

Join us for our upcoming telephone town hall

I invite you to join us on Thursday, March 5, as we hold our next telephone town hall regarding the new tax filing season. We will be joined by officials from the Internal Revenue Service (IRS) and the Office of the Taxpayer Advocate, also known as the Taxpayer Advocate Service, who will help to answer constituents' questions.

As Pennsylvanians file their taxes this year, they are learning more about all the benefits included in the new Working Families Tax Cuts law, also known as the One Big Beautiful Bill. Our upcoming town hall will help everyone across Pennsylvania's 16th Congressional District file their taxes effectively and efficiently.

DETAILS

Who: U.S. Rep. Mike Kelly, officials from the IRS and Office of the Taxpayer Advocate
What: Live, toll-free telephone town hall
When: Thursday, March 5, 2026 at 6:00p.m. ET
Pinless Participant Dial-In: 855-531-1063
Livestream: Facebook.com/MikeKellyPA

Meeting with Marc Fogel in Washington

On Tuesday, my team and I had the privilege of meeting with Butler County native Marc Fogel in our Washington office. Marc was wrongfully imprisoned in Russia for more than three and a half years. Throughout this time, I joined the Fogel family and a bipartisan group of lawmakers to advocate for Marc’s release.

One year ago, Marc was released from Russia just weeks after President Trump returned to the White House. The President committed to securing Marc’s freedom, and he delivered on that promise. A promise made, and a promise kept. Together with the leadership of President Trump and his team, Marc is reunited with his family once again.

I want to extend a sincere thanks to Marc for visiting with us today and for sharing his story. His return to the United States is truly providential.

Momentum Builds for American Innovation Act

This week, we received some great news about the American Innovation Act, which I co-lead with my colleague from Florida, Rep. Vern Buchanan. Several of the nation’s leading pro-growth and small business organizations have endorsed our legislation, which would quadruple the amount of start-up costs small business owners can deduct in their first year of operations.

This is big news for Pennsylvania businesses because the legislation would increase the deduction allowance from $5,000 to $20,000 and raise the phase-out threshold from $50,000 to $120,000. The bill also allows partnerships and S corporations to be eligible for the deduction.

The American Innovation Act allows for investments in research and development to help small businesses grow and allow entrepreneurs to take that next step in their American Dream. This pro-growth tax policy will kickstart Main Street businesses, and it make it easier for these businesses to create jobs, support families and grow our local economies.

Learn more about the bill here.

Supporting Pennsylvania's youngest farmers

This week is National Future Farmers of America Week! I'm proud to co-sponsor a resolution which formally designates and recognizes February 21-28, 2026 as National FFA (Future Farmers of America) Week in Congress.

I worked on my family's farm as a kid growing up in Western Pennsylvania. Today, agriculture continues to be one of Pennsylvania's top industries, from dairy to livestock to row crops, and more. Generations of young farmers have participated in the FFA. It's important that we recognize the hard work and sacrifice that local farm families make to put food on our tables each and every day.

As always, my team and I are here to serve you. If you need assistance with a federal agency, particularly as the new tax filing season continues, please contact us -- we are just one call or email away.

See you in the community, and God Bless America!

Sincerely,

Mike Kelly
Member of Congress

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