House Passes Tax Bill, Senate Action Uncertain

On January 31, the U.S. House of Representatives overwhelmingly passed a bipartisan tax package. With a vote of 357-70, the measure would expand eligibility for the child tax credit among the lowest-income families and adjust payments for inflation for the 2024 and 2025 filing years. Additionally, the measure would bolster certain business tax credits such as deductions for research and development, interest expenses, and investments in equipment. Despite protests from several factions in the House, including from members who wanted to address the cap on the state and local tax (SALT) deduction implemented in 2017, Speaker Johnson pressed the measure forward under suspension of the rules. This action limited floor debate and the ability for floor amendments but required a two-thirds vote for passage. The package moves to the Senate where the timing of consideration remains highly uncertain.