The House and Ways Committee and the Senate Finance Committee announced a bipartisan tax deal that will “help families, boost affordable housing, spur innovation, and improve economic competitiveness”. The Tax Relief for American Families and Workers Act of 2024 is a three-year proposal that will benefit millions of low-income families and independent small businesses.
If this bipartisan tax deal is approved, working families will be supported with an enhanced Child Tax Credit for the 2023, 2024, and 2025 tax season and apply to families with multiple children. Inflation relief will allow the child tax credit to be adjusted based on inflation. Improvements to the Low-Income Housing Tax Credit will build more than 200,000 new affordable housing units.
Small businesses will be supported through disaster relief without the red tape as well as immediate research and development expensing instead of over five years. Businesses will also benefit from interest deductibility on loans and 100 percent expensing for investments in equipment and vehicles.
The deal, if passed, could have a significant financial impact on our country and be felt by many as soon as the upcoming tax filing season.