Moving to wrap up work for the year, the House on Thursday afternoon easily approved an over $600 billion tax bill, as lawmakers set up votes on Friday on a mammoth spending bill to fund the operations of the federal government.
“This is a good bill,” said Rep. Pat Tiberi (R-OH) of the tax extenders legislation. “This is an amazing bill.”
The plan would renew – and in some cases make permanent – a series of tax breaks for individuals and businesses, which have long been known as the ‘tax extenders.’
Congress has never moved to make them permanent, instead voting every year or two to extend them on a temporary basis.
Some of the highlights of the measure include:
+ An expanded child tax credit will be made permanent
+ An expanded earned income tax credit is also now permanent
+ Taxpayers in states with no income tax will now be assured that they can write off state sales taxes when itemizing on their federal tax return
+ A research and development tax credit is made permanent for businesses
+ Small businesses would get to write off up to $500,000 in equipment or heavy machinery under Section 179
“Americans will keep more of their hard-earned money to spend and invest as they see fit, and that is vital to building a healthy economy,” said Rep. Tom Price (R-GA), the Chairman of the House Budget Committee.
The final vote was unusually lopsided, 318-109, with Republicans voting 241-3 for the measure.
Democrats were against it, with 77 votes for the plan and 106 against.
A Senate vote is expected on Friday, after the House gives final approval to the Omnibus – though that vote is expected to be closer than the tax tally.