A recent bipartisan agreement in Congress is now enhancing the child tax credit and renewing business tax breaks, reflecting a collaborative effort to support American families and businesses. Led by Senator Ron Wyden and Representative Jason Smith, this initiative involves a $78 billion tax package designed to address economic challenges in the post-COVID-19 era. It includes a gradual increase in the refundable amount of the child tax credit and synchronizes the expiration of these new tax breaks with those from 2017, extending them until 2025. To fund these changes, the plan proposes an early end to the employee retention tax credit and tougher penalties for tax preparers not performing adequately, ensuring the package doesn't add to the national deficit.
