Ways and Means Committee advances tax deal 

The House Ways and Means Committee Jan. 19 voted 40-3 to advance the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024). The bill includes an enhanced child tax credit; provisions on research and development expensing so businesses of all sizes can immediately deduct the cost of their U.S.-based research and development investments instead of over five years; an enhanced low-income housing tax credit; and increased disaster relief. To offset the cost of the legislation, the bill also would move forward the Employee Retention Credit claim submissions deadline to Jan. 31, 2024. The ERC is a refundable tax credit originally enacted to mitigate the effects of the COVID-19 pandemic for employers who kept their employees on their payroll, and it was part of the 2020 Coronavirus Aid, Relief, and Economic Security Act. The new deadline applies to all ERC claim submissions.