Expands the child tax credit and extends several business tax breaks

§1What it does

Why this matters: A plain-English description of the bill as it was voted on, written by us from the official summary and text.

✎ Drafted by AI from the public sources cited. Each sentence links to its source.

This bill would expand the refundable part of the child tax credit, the portion families can receive even if they owe no income tax, by calculating it per child and raising the per-child cap to $1,800 for 2023, $1,900 for 2024 and $2,000 for 2025.^2,3 For businesses, it would allow immediate deductions of U.S. research costs until 2026 instead of spreading them over five years, extend 100% bonus depreciation (deducting the full cost of equipment in the year it is bought), ease the limit on deducting business interest, and raise the cap on expensing business assets.^2,3 It would also set special tax rules for Taiwan residents with U.S. income, exclude certain wildfire and East Palestine, Ohio, train derailment compensation from taxable income, expand the low-income housing tax credit, and raise the threshold for reporting payments to independent contractors from $600 to $1,000.^2,3 The House passed it under a procedure called suspension of the rules, which requires a two-thirds vote, but in the Senate a vote to take up the bill, which needed 60 votes, failed 48 to 44.³

§2Status

§3How Congress voted

Why this matters: The official count.