Tuesday, January 9, 2024
Year : 1, Issue : 19
A powerful bipartisan duo announced a significant tax deal Tuesday that would combine an expansion of the child tax credit with long-sought provisions for the business world.
It’s a deal that faces uncertain prospects of being enacted. But if it can find its way into law by the end of this month, it could even be felt during the upcoming tax filing season.
The pact is the culmination of months of talks that have long centered around an idea of pairing a Republican priority to renew three expired business-world deductions from the 2017 Trump tax cuts with a keen Democratic focus on the pandemic-era enhanced child tax credit.
The plan from Wyden and House Ways and Means Chair Jason Smith (R-Mo.) is being dubbed the “Tax Relief for American Families and Workers Act of 2024” and would allow larger families greater access to the child tax credit while also phasing in a refundable portion to gradually allow the poorest families to access the full current credit of $2,000.
The deal also includes a significant change by adjusting the tax credit for inflation starting in 2024.
One last-minute addition to the package announced Tuesday was another measure designed to increase the supply of low-income housing through an enhanced low-income housing tax credit. The housing portion of the deal would also lessen an existing bond financing requirement.
The deal now faces a difficult challenge in actually being passed and signed into law but boasts powerful backers who will push it in the weeks ahead.
The significant bipartisan breakthrough also comes ahead of a 2025 that is expected to be heavily focused on tax debate in Washington with a host of additional tax breaks included in the 2017 Trump tax cuts set to expire on Dec. 31, 2025.
Source: Yahoo Finance