25 January 2024
WASHINGTON (NEXSTAR) – Families could see more money this year if they qualify for the child tax credit because Congress is trying to expand that benefit while also reviving tax breaks for corporations.
Some lawmakers hope to get this passed before tax season begins in just four days.
Lawmakers announced a bipartisan agreement to enhance the child tax credit and bring back a variety of tax breaks for businesses.
“This bill contains important provisions that individually have bipartisan support,” said Rep. Jason Smith (R-Mo.)
If passed, the law would gradually increase the refundable amount low-income families can claim for a child tax credit, but it would only run through 2025.
“Cutting childhood poverty, putting families on a pathway to prosperity, and setting parents up to better participate in our workforce are all within our reach,” said Rep. Richard Neal (D-Mass.)
The tradeoff for Republicans is $78 billion in revived tax breaks for businesses, paid for by ending a COVID-era tax break that encouraged businesses to keep employees.
“It’s a good thing, primarily for small and medium-sized businesses,” said Rep. Vern Buchanan (R-Fla.)
While the bill has bipartisan support, some Democrats say it doesn’t do enough to help kids.
“This bill helps some, but it lacks the political will to cut child poverty in half,” said Rep. Danny Davis (D-Ill.)
Supporters say it’s a worthwhile effort with buy-in from both sides.
“The bill before us today represents bipartisan policies that are proven and effective, common-sense fixes to the tax code that will rebuild our communities,” said Smith.
Depending on when Congress gets this passed, families could either claim the benefits on this year’s tax filings or potentially claim it retroactively next year. That depends on what Congress finally approves.