Congress Close to Passing $78 Billion Tax Package Reviving Child Tax Credit

The proposed deal would temporarily reduce child poverty, incentivize innovation, and is mostly offset by changes to the Employee Retention Tax Credit.

Congress is close to passing a $78 billion tax package that would partially revive an expanded Child Tax Credit and business tax incentives for research and development.
The tax package would temporarily reduce child poverty, incentivize innovation and minimally add to the national debt.
The Child Tax Credit would be indexed to inflation, incrementally made fully refundable, and allow families to use prior-year income to claim it.
The tax deal would restore full expensing for domestic R&D performed in 2022 through 2025, putting the U.S. back in line with its peer countries.
The cost of these tax breaks is mostly offset by changes to the Employee Retention Tax Credit.