WASHINGTON, DC – Ahead of a key procedural vote scheduled for tomorrow to provide tax relief to families and businesses, U.S. Senator Jack Reed (D-RI) is urging his colleagues in the U.S. Senate to support the bipartisan, House-passed Tax Relief for American Families and Workers Act of 2024. This bipartisan bill expands the child tax credit and extends several pro-growth tax policies, including a full, upfront deduction for research and development costs.  Tomorrow’s cloture vote requires support from 60 Senators to advance. 

The bipartisan, bicameral measure was negotiated by U.S. Senator Ron Wyden (D-OR), Chairman of the Senate Finance Committee, and House Ways and Means Committee Chair Jason Smith (R-MO).  The U.S. House of Representatives passed the bill by a vote of 357-70 earlier this year.

But despite the deep, broad bipartisan support in the House, Senate Republican leaders have signaled their intent to prevent the measure from getting an up or down vote in the Senate.  News reports suggest a significant number of Senate Republicans are stalling until next year when they think they could control the White House and more seats in Congress and would therefore pass a bill filled with their partisan priorities like further tax giveaways to big corporations and the super wealthy.

“Congress is supposed to work together to make Americans’ lives better.  I urge every Senate Republican to join us in passing this bill to deliver tax relief and help children, families, workers, and Main Street businesses nationwide.  This is a bipartisan, balanced approach that would provide tax relief to working families and businesses alike. Expanding the child tax credit and enhancing the Low-Income Housing Tax Credit and other key tax cuts are big steps forward.  This bipartisan bill would uplift 16 million children, help millions of families, and build a stronger middle-class.  It would invest in Main Street, help build more affordable housing, and spur innovation and economic growth,” said Senator Reed.  “I urge every Senate Republican to join Democrats in supporting real, meaningful tax relief for American families, workers, and employers across the country.  Don’t wait, do your job now and vote in the best interests of the people you represent.”

The Tax Relief for American Families and Workers Act would:

Support working families with an enhanced Child Tax Credit: The proposal would expand the child tax credit tax break for qualifying families with children, help more of the lowest-income families receive a larger credit, and can be claimed even by families who do not normally file a return.  Under current law, the maximum refundable child tax credit is for $1,600 per child. The legislation would increase that amount to $1,800 for 2023, to $1,900 this year and to $2,000 for the 2025 tax season.  It would also adjust the tax credit's limit in 2024 and 2025 to account for inflation.

Enhance the Low-Income Housing Tax Credit: The bill would spur construction of more than 200,000 affordable housing units by enhancing the Low-Income Housing Tax Credit, a public-private partnership with a proven track record, with increased state allocations and a reduced tax-exempt bond financing requirement.

Expand innovation and competitiveness with pro-growth economic policies like research and development (R&D) expensing: This would enable businesses of all sizes to immediately deduct the cost of their U.S.-based R&D investments instead of over five years – encouraging American innovation and improving our competitive position versus China and the rest of the world.  This R&D expensing fix would also be retroactive to tax year 2022.

Build up Main Street by cutting red tape and rebuild communities struck by disasters with tax relief: The bipartisan agreement would allow small businesses to increase the amount of investment that they can immediately write off to $1.29 million.

The Joint Committee on Taxation reports that for every dollar in tax cuts for businesses in the bill, an equal amount goes to children and families.