WASHINGTON, D.C. – The House voted to pass a bipartisan tax bill that would enhance the Child Tax Credit, benefitting millions of American families. The $78 billion tax package, known as the Tax Relief for American Families and Workers Act of 2024, is now moving to the Senate for consideration, where its fate remains uncertain.
If approved by the Senate, the bill would increase the child tax credit and restore critical research and development deductions. It would also introduce new low-income housing tax credits, disaster tax relief, and tax benefits for Taiwan. The changes would be in effect through 2025 when previous Republican tax cuts expire.
The rare bipartisan win saw the House voting 357-70 in favor of the measure, with House Speaker Mike Johnson calling the tax bill “important” legislation. However, despite its overwhelming support, lawmakers raised several issues with the legislation, including concerns about the child tax credit and state and local tax deductions.
Notably, some New York Republicans were displeased with the absence of state and local tax deduction limits, also known as SALT provisions, which had been a top priority for them. Additionally, some conservative members, including those from the House Freedom Caucus, criticized the bill for expanding the child tax credit, while liberal Democrats felt it did not go far enough in doing so.
The negotiations for the tax bill were led by Senate Finance Committee Chair Ron Wyden and House Ways and Means Committee Chair Jason Smith. The bill had previously passed with bipartisan support out of the House Ways and Means Committee on Jan. 19 by a vote of 40-3.
The fate of the tax bill now rests on the Senate, where it is expected to face further scrutiny and potential amendments before moving forward. If the bill successfully navigates the Senate, it will mark a significant step in shaping the future of tax policy in the United States.