The House passed a $78 billion bipartisan tax package expanding child tax credits and restoring business benefits. The deal faces Senate consideration next, aiming to provide a larger credit to low-income families, potentially lifting 500,000 children out of poverty.
The proposal impacts lower-income households, increasing the maximum refundable credit and adjusting for inflation from 2024. It also restores business tax benefits temporarily, allowing immediate deductions for research and experimentation investments, machinery, and equipment.
The bill addresses disaster relief and enhances the Low-Income Housing Tax Credit. The Employee Retention Tax Credit filing deadline is accelerated to January 31, 2024. Despite concerns about potential disincentives to work or undocumented immigrants claiming credits, the deal maintains earnings thresholds and Social Security number requirements.
Some Democrats, like Rep. Rosa DeLauro, express discontent over the deal’s limitations on making the full credit available to families with very low incomes. The package aims to benefit millions of children and provide relief to businesses, disaster-affected areas, and low-income housing.
