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

WASHINGTON –  Today, the Ways and Means Committee passed bipartisan legislation expanding the Child Tax Credit, strengthening the Low Income Housing Tax Credit, and restoring the corporate research and development tax credit. Congressman Brad Schneider’s American Investment in Manufacturing Act was included in the legislation.

“Today the House Ways and Means Committee took a step forward on a  bipartisan piece of legislation to expand the Child Tax Credit, strengthen the Low Income Housing Tax Credit, restore the corporate research and development tax credit and a few other items. While I don’t think this bill does all it could have to help working families or list our country’s young people out of poverty, the thousands of Illinois children it will free from poverty is a starting point, and I look forward to doing much more to give our nation’s parents and their children a leg up toward real financial security. Additionally, I am deeply disappointed that the bill did not address the unfair double taxation of the SALT deduction cap.” said Schneider. “Nevertheless, while I did not get everything I wanted in this bill, helping American families, lifting American children out of poverty and growing our economy with bipartisan legislation is something we can and should do more of in the future.”

Schneider’s remarks on the bill can be found here. Schneider’s remarks on Congressman Pascrells’ 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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