Photo: Omar Chatriwala / Moment / Getty Images
Congressional leaders in the House and Senate have reached a $78 billion tax deal that would expand the child tax credit and create a series of tax breaks for business owners.
The deal between House Ways and Means Chair Jason Smith and Senate Finance Chair Ron Wyden comes after months of tense negotiations between Republicans and Democrats.
The deal would expand the child tax credit to benefit an additional 15 million children from low-income families, lift the tax credit's $1,600 refundable cap, and adjust it for inflation.
"American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, boosts our competitiveness with China, and creates jobs," Smith said in a statement.
"Fifteen million kids from low-income families will be better off as a result of this plan, and given today's miserable political climate, it's a big deal to have this opportunity to pass pro-family policy that helps so many kids get ahead," Wyden said in a statement.
The deal also renews some expired tax breaks for businesses, including expanding several small-business expense options.
The deal will be drafted into legislation and must pass the House and Senate.