House Tax Committee Advances Legislation

January 23, 2024 | Washington, D.C.

Last Friday the House Ways and Means Committee, chaired by Representative Jason Smith (R-MO), approved a $78 billion tax package that included an expansion of the child tax credit and renewal of certain business-friendly provisions that were scheduled to phase down. Smith had spent weeks negotiating with Senate Finance Committee Chair Ron Wyden (D-OR) and House Ways and Means Committee Ranking Member Richie Neal (D-MA) to develop a bipartisan package that addressed Democratic desires to maintain the higher, temporary levels for the child tax credit that had been implemented during the COVID-19 pandemic. The tax committee voted overwhelmingly to support the legislation by a vote of 40 to 3.

The bill included provisions renewing 100% bonus depreciation, a NAIOP legislative priority, and reinstates higher allowable deductions for businesses for interest payments on debt put in place by the 2017 Tax Cuts and Jobs Act. The House is out this week and floor action will likely occur after their return Jan. 29. Senate Republicans have not yet voiced support for the legislation, but the strong bipartisan vote in the House could help the legislation on the Senate side.