House Passes Bipartisan Legislation to Expand Child Tax Credit, Restore Corporate R&D, Build More Low Income Housing

WASHINGTON –  Today, the House of Representatives passed bipartisan legislation expanding the Child Tax Credit, strengthening the Low Income Housing Tax Credit, and restoring the corporate research and development tax credit. The legislation previously passed out of the Ways and Means Committee on a 40-3 vote. Congressman Brad Schneider’s American Investment in Manufacturing Act was included in the legislation.

According to estimates by the Joint Economic Committee, 24,000 kids in the Tenth District of Illinois would benefit from the expanded Child Tax Credit in the Tax Relief for American Families and Workers Act. Nearly 600,000 kids across the state of Illinois would benefit.

“Today the House passed truly meaningful, bipartisan, legislation that will benefit millions of needy children. The most significant, if not the only significant legislation passed so far this Congress, this bill will lift kids out of poverty, lower the tax burden for working families, support innovating businesses, and expand the supply of affordable housing. ” said Schneider. “There’s still more work to do: we should address the unfair SALT cap hurting Illinois families, and we should do more for our nation’s children. This bill will lift nearly half a million children out of poverty—and support nearly 600,000 children in Illinois. It’s a positive step and we can’t stop there.”

Schneider’s remarks on the House Floor can be found here.

Schneider’s Committee remarks on the bill can be found here. Schneider’s Committee remarks on Congressman Pascrell’s SALT amendment can be found here.

More information on the bill and the markup, including bill text, can be found here.

The legislation marked up included a variety of bills and priorities that Rep. Schneider has championed:

• Child Tax Credit (CTC): This legislation would make a number enhancements to the CTC that would benefit 16 million children nationwide, including nearly 600,000 in Illinois. Rep. Schneider has been a longtime supporter of the CTC, helped introduce the American Family Act to expand the CTC, and as a member of the Ways & Means Committee helped pass the American Rescue Plan that cut the childhood poverty rate in half.
• Low-income Housing: Schneider has been a longtime supporter of federal policy that expands housing accessibility and affordable housing across the country. He helped introduce the bipartisan Affordable housing Credit Improvement Act, several components of which were included in today’s bill. The Low-Income Housing Tax Credit is a critical federal tool within tax policy to expand affordable housing, and this legislation is expected to result in the addition of more than 200,000 units of housing.
• Interest Deduction: Rep. Schneider co-led the introduction of the bipartisan American Investment in Manufacturing Act that would continue the business interest deduction policy that expired in 2022. This policy will help ensure greater access to credit for businesses that are growing, supporting industries large and small.
• Research & Development: Rep. Schneider is a strong supporter of tax policy that supports U.S. innovation, and the federal research & development tax credit is an important component of that. The legislation passed today includes immediate expensing for all domestic research and development, a movement away from the current five-year amortization. This bipartisan provision will help ensure that U.S. companies are able to make the investments that keep the American economy at the forefront of innovation.

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