A bipartisan coalition of Republicans and Democrats overwhelmingly passed a $78 billion bill that expands the child tax credit and renews key business investment deductions. The bill was negotiated between House Ways and Means Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR) and advances the key agenda for the Biden administration in expanding the child tax credit.
The legislation, which still must pass a vote in the Democratic-controlled Senate, increases the maximum refundable per child credit each year through 2025. For tax year 2023, it goes from $1,600 to $1,800, then rises to $1,900 in tax year 2024 and $2,000 for tax year 2025.
Biden has called for an expansion of the child