US House of Representatives passes bipartisan tax relief legislation

House lawmakers passed the legislation, dubbed the Tax Relief for American Families and Workers Act, on Wednesday in a vote of 357 in favour and 70 opposed.

"Our tax deal is pro-growth, pro-jobs, and pro-America. There is not a single state or community across the country that won't suffer if Congress fails to act and provide immediate tax relief for small businesses," House Ways and Means Committee Chairman Jason Smith said in a statement on the bill.

Smith announced the framework alongside US Senate Finance Committee Chairman Ron Wyden earlier this month. Wyden said he hopes to get the legislation passed in time for taxpayers to benefit in the upcoming tax filing season.

The legislation changes calculations used to determine the maximum refundable child tax credit. Under current policies, taxpayers multiply their income by 15 per cent. The bill modifies the policy by then multiplying that figure by the number of qualifying children.

The current maximum refundable child tax credit is limited to US$1,600, but the legislation raises the limit to US$1,800 in tax year 2023 and to US$2,000 by tax year 2025.

The bill also modifies tax dedication policies for domestic research and experimental costs, provides tax benefits to Taiwan residents and extends disaster-related tax relief.