KEY POINTS
- The bipartisan tax bill will expand the child tax credit for American families and reinstate some tax cuts for businesses
- The legislation surpassed the two-thirds majority it required and passed the House in a 357 to 70 vote
- The bill will now head to the Senate, where it will need 60 votes to pass
The House voted Wednesday night with overwhelming approval to pass a $78 billion tax package that includes an expansion of the child tax credit and business tax breaks.
Surpassing the two-thirds majority it required, the legislation passed the House in a 357 to 70 vote and will now head to the Senate, where it will need 60 votes to pass. 188 Democrats and 169 Republicans voted Wednesday in favor the bill, while 23 Democrats and 47 Republicans voted against it.
The legislation, known as the Tax Relief for American Families and Workers Act of 2024, is aimed at providing relief to lower-income families by making it easier to qualify for the child tax credit.
Currently, the tax credit is $2,000 per child, but only a portion of it is refundable. If the legislation is enacted, the refundable portion of the child tax credit would increase to $1,800 for tax year 2023, $1,900 for 2024 and $2,000 for 2025. The bill will also adjust the limit in the coming years to account for inflation.
The legislation also includes some revived business tax credits, including deductions for research and development and interest expensing for businesses.
“The Tax Relief for American Families and Workers Act is important bipartisan legislation to revive conservative pro-growth tax reform. Crucially, the bill also ends a wasteful COVID-era program, saving taxpayers tens of billions of dollars,” Speaker Mike Johnson, R-La., said in a statement hours before the final vote.
