The top tax writers in the House and Senate announced a $78-billion bipartisan deal Tuesday, as they race to enact provisions into law before tax season gets underway at the end of January.
Here’s what made it in the deal.
Child tax credit expansion
The child tax credit would get a boost under the agreement, increasing the maximum credit per child from $1,600 to $2,000 through 2025. This credit would also be adjusted for inflation in 2024 and 2025.
The maximum credit for each taxpayer would be calculated on a per-child basis rather than capping the credit at 15 percent of earned income over $2,500 across the board.
The shift aims to help “ensure the child tax credit phase-in is applied fairly to families with multiple children,” Senate Finance Committee Chair Ron Wyden (D-Ore.) and House Ways and Means Committee Chair Jason Smith (R-Mo.) said in a press release.