Tax Bill With 100% Bonus Depreciation May Get House Vote This Week

The package “would also provide a more generous child tax credit (CTC) by adjusting the refundable and base CTC amounts for inflation, providing an income lookback when calculating the credit value, and phasing in the refundable CTC maximum faster for households with multiple children,” the Tax Foundation wrote.

“Paired with these changes are other items like a tax agreement with Taiwan, an increase in enforcement for the pandemic-era employee retention credit, and an increase in the generosity of low-income housing tax incentives,” the group explained

The Tax Foundation does have its concerns, since most of the tax changes expire at the end of 2025. As a result, the temporary tax policies will “deliver no long-term economic benefits and can obscure the long-run cost of a policy when they are eventually extended,” it pointed out.

The deal also provides retroactive tax relief for 2022 and 2023, “which does not change forward-looking economic incentives,” the group wrote.