• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
PoliticsCongress

House passes $79bn bill to increase child tax credits and boost three key tax breaks for business

By
Kevin Freking
Kevin Freking
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Kevin Freking
Kevin Freking
and
The Associated Press
The Associated Press
Down Arrow Button Icon
February 1, 2024, 5:18 AM ET
House Speaker Mike Johnson of La., walks on Capitol Hill, on Jan. 18, 2024, in Washington.
House Speaker Mike Johnson of La., walks on Capitol Hill, on Jan. 18, 2024, in Washington. Yuri Gripas—AP
Add Fortune on Google for similar content.

The House accomplished something unusual Wednesday in passing with broad, bipartisan support a roughly $79 billion tax cut package that would enhance the child tax credit for millions of lower-income families and boost three tax breaks for businesses, a combination that gives lawmakers on both sides of the political aisle coveted policy wins.

Recommended Video

Prospects for the measure becoming law are uncertain with the Senate still having to take it up, but for a House that has struggled to get bills of consequence over the finish line, the tax legislation could represent a rare breakthrough. The bill passed by a vote of 357-70.

Speaker Mike Johnson, R-La., threw his support behind the bill on Wednesday morning. He spent part of the previous day meeting with GOP lawmakers who were concerned about particular features of the bill, namely the expanded child tax credit. Some were also unhappy that it failed to address the $10,000 cap on the total amount of property taxes or state or local taxes that consumers can deduct on their federal returns. Raising the cap is a top priority of lawmakers from the Republican members of the New York congressional delegation, whose victories in 2022 helped the GOP take the majority.

Johnson committed to moving a bill that addresses the cap, but there is no bill text yet and legislation would have to move through the House Rules Committee, which leaves the timing very much in flux. Athina Lawson, a spokeswoman for Johnson, said the speaker and the chairman of the House Ways and Means Committee, Rep. Jason Smith, R-Mo., agreed to work with lawmakers to “find a path forward.”

Johnson called the tax cut bill on the House floor important, bipartisan legislation that would revive “conservative pro-growth tax reform.” He also said it would bring an early end to a “wasteful COVID-era program” that has been plagued with fraud. Moving up the deadline for claiming the employee retention tax credit is expected to largely offset the cost of the tax cuts in the legislation.

Johnson also emphasized the importance of the bill moving through the House Ways and Means Committee before coming to the full House for a vote, saying it was a good example of how Congress is supposed to work.

House Republicans were anxious to restore full, immediate deductions that businesses can take for the purchase of new equipment and machinery, and for domestic research and development expenses. They argue such investments grow the economy and incentivize American companies to keep their manufacturing facilities and operations in the United States. The bill also provides businesses more flexibility in determining how much borrowing can be deducted.

“Each of these policies will help American businesses grow, create jobs and sharpen their competitive advantage against China,” Smith said as debate began on the House floor.

Democrats focused on boosting the child tax credit. The tax credit is $2,000 per child, but not all of that is refundable. The bill would incrementally raise the amount of the credit available as a refund, increasing it to $1,800 for 2023 tax returns, $1,900 for the following year and $2,000 for 2025 tax returns. The bill also adjusts the topline credit amount to temporarily grow at the rate of inflation.

Households benefitting as a result of the changes in the child tax credit would see an average tax cut of $680 in the first year, according to estimates from the nonpartisan Tax Policy Center.

Democrats pushed to restore the more generous tax credit they passed in 2021 in President Joe Biden’s first year in office with payments occurring on a monthly basis. The credit was $3,600 annually for children under age 6 and $3,000 for children ages 6 to 17. But most lawmakers were willing to take what gains they could get through the compromise bill.

“You know I’ve been told that a half a loaf is better than none,” said Rep. Danny Davis, D-Ill. “This isn’t even half a loaf, but I’m going to vote for it because our families and businesses need help.”

“What’s in front of us tonight is pretty simple,” said Rep. Richard Neal, D-Mass. “Sixteen million children will benefit from the improvement to the child tax credit. That’s a fact.”

But for some Democrats, it wasn’t enough.

“This bill provides billions of dollars in tax relief for the wealthy, pennies for the poor,” said Rep. Rosa DeLauro, D-Conn. “Big corporations are richer than ever. There is no even split.”

And for some Republicans, it was too much. The chief critics of the expanded child tax credit likened it to “welfare.”

“What is a refundable tax credit? It’s welfare by a different name. We’re going to give cash payments, checks, to people who don’t even pay taxes,” said Rep. Thomas Massie, R-Ky.

Rep. Drew Ferguson, R-Ga., chafed at that characterization, saying “we all believe on this side of the aisle that you should work in order to receive federal benefits. That is something that this bill does.”

While there were complaints about the tax bill from some of the most conservative and liberal members of the House, a significant majority from each party voted for it. Proponents are hoping the strong show of support will stir action in the Senate.

The bill keeps a threshold of a household having $2,500 in income to be eligible for refundable child tax credit payments.

The bill also would enhance a tax credit for the construction or rehabilitation of rental housing targeted to lower-income households, adding an estimated 200,000 housing units around the country. That was a key priority of lawmakers from states with acute housing shortages and soaring prices. And it would ensure victims of certain natural disasters and the East Palestine, Ohio, train derailment don’t get hit with a big tax bill for payments they received as compensation for their losses.

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Authors
By Kevin Freking
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

alan
LawSupreme Court
Supreme Court to Alan Dershowitz: take a hike with your $300 million defamation suit against CNN
By Lindsay Whitehurst and The Associated PressJune 29, 2026
2 hours ago
acb
PoliticsSupreme Court
One of Trump’s Supreme Court appointees just saved the late mail ballots he hates so much
By Mark Sherman and The Associated PressJune 29, 2026
2 hours ago
lc
PoliticsSupreme Court
Supreme Court rules against Donald Trump in his quest to fire Fed Governor Lisa Cook — for now
By Mark Sherman and The Associated PressJune 29, 2026
3 hours ago
aus
LawSocial Media
Australia’s under-16 social media ban is failing, so the government is (literally) doubling down
By Rod McGuirk and The Associated PressJune 29, 2026
4 hours ago
swisher
Politicspodcasts
‘Podcasts are the NBA’: Scott Galloway on Kara Swisher’s big success — ‘there’s a small amount of people making a lot of money’
By Steven Sloan and The Associated PressJune 29, 2026
4 hours ago
np
PoliticsColleges and Universities
Nancy Pelosi brings her legendary congressional knowhow to a new Berkeley institute with $35 million in funding
By Kevin Freking and The Associated PressJune 29, 2026
4 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
4 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
2 days ago
Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
Success
Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
By Orianna Rosa RoyleJune 28, 2026
1 day ago
Cristiano Ronaldo is soccer's first-ever billionaire: He went from begging for burgers outside McDonald's to landing a $400 million contract
Success
Cristiano Ronaldo is soccer's first-ever billionaire: He went from begging for burgers outside McDonald's to landing a $400 million contract
By Preston ForeJune 28, 2026
1 day ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 2026
1 day ago
Iran is forcing the U.S. into an escalation trap as a 'shadow war' over the Strait of Hormuz heats up that could kill the tenuous ceasefire
Politics
Iran is forcing the U.S. into an escalation trap as a 'shadow war' over the Strait of Hormuz heats up that could kill the tenuous ceasefire
By Jason MaJune 28, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.