House passes tax credit expansion bill

The House decisively passed a bipartisan tax bill on Wednesday that would help a larger number of low-income families claim more money and allow businesses to deduct more of their expenses.

With a resounding vote of 357 to 70, the legislation seeks to expand the child tax credit for the lowest-income families and adjust payments for inflation in the 2024 and 2025 filing years. 

Additionally, the bill supports certain business tax credits, such as those for research and development and investments in equipment, previously restricted under the 2017 tax cut law.

Next stop, Senate
The bill faces an uphill battle in the Senate, with 188 Democrats and 169 Republicans supporting it and 23 Democrats and 47 Republicans opposing it.

Lawmakers are rushing to send the measure to President Joe Biden’s desk before the end of tax filing season in April.

If successful, the legislation could lift over half a million children out of poverty, per the Center on Budget and Policy Priorities.