12/22/2022

Business, Family Tax Breaks Not Included in Spending Deal

A compromise to include them couldn't be reached

Democratic and Republican lawmakers were negotiating a deal to include tax breaks for businesses in the omnibus spending bill this week in exchange for renewal of expanded child tax credits, but, ultimately, the deal did not get done.

Congress passed an expanded child tax credit in 2021 that included $3,000 per child over the age of six and $3,600 per child under the age of six but the credit expired in December of last year.

Republicans reportedly offered Democrats nearly $4 billion for the child tax credit in exchange for an extension of corporate tax breaks; however, Democrats said the $4 billion was enough funding for only six months of the child tax credit.

House Republicans said expired business tax breaks, such as the expired research and development deduction, will be a priority next year when Republicans take majority control of the House.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.