Congress’ top tax writers strike deal
Tax chiefs in the House and Senate have struck a bipartisan deal to beef up the child tax credit (CTC) and reinstate business deductions.
The CTC expansion would increase the maximum credit per child to $2,000 from $1,600 through 2025 while restoring business deductions for research and development costs, interest payments and capital investments.
The deal also has provisions on increasing the low-income housing tax credit and a carve-out to protect Taiwanese companies from double taxation following an effort by the U.S. to reshore segments of the high-end semiconductor industry, much of which is based there.
Additionally, the proposal boosts the amount in capital expenditures that small businesses can immediately write off to $1.29 million from $1 million, along with increasing the reporting threshold for subcontractor work to $1,000 from $600.
“American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, boosts our competitiveness with China, and creates jobs,” House Ways and Means Committee Chair Jason Smith (R-Mo.) said in a Tuesday morning statement.
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https://thehill.com/newsletters/business-economy/4412473-inside-the-bipartisan-tax-deal/
