Policy Backgrounders

Bipartisan Congressional Tax Bill

February 02, 2024

Trusted Insights for What’s Ahead™:

On Wednesday, the House of Representatives passed a bipartisan tax bill in a 357-70 vote with overwhelming support from both parties. The tax bill increases the child tax credit and business deductions for research and development, capital expenses, and interest.

• The bill also changes reporting thresholds, ends double taxation for businesses operating in Taiwan and the United States, promotes affordable housing construction through enhancements to the Low-Income Housing Tax Credit, and provides tax relief to taxpayers affected by recent federally declared disasters. The Joint Committee on Taxation estimates the tax bill will result in revenue losses of approximately $79 billion over ten years.
• To offset the revenue losses of these tax provisions, the tax bill ends filing for the pandemic-era Employee Retention Tax Credit at the end of January 2024 instead of April 2025, for a net revenue loss of approximately $1 billion.
• The bipartisan tax bill faces initial opposition from some Republican Senators and quick passage remains uncertain given the competing priorities in the Senate over the next month.