(C) Ohio Capital Journal
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U.S. Sen. Sherrod Brown touts bipartisan deal to boost child tax credit, R&D and housing [1]
['Nick Evans', 'More From Author', '- January']
Date: 2024-01-19
Ohio business leaders joined Ohio Democratic U.S. Sen. Sherrod Brown in calling for passage of a $78 billion tax deal this week. Tax committee chairs in the House and Senate — one a Republican, the other a Democrat — agreed on the plan which expands the child tax credit as well as tax deductions for research and development.
In a call with reporters, Brown emphasized a provision ensuring East Palestine residents won’t be taxed for disaster payments they received after the Norfolk Southern train derailment there last February.
“East Palestine people have endured enough,” Brown said, “That money from Norfolk Southern is supposed to go toward making residents whole. They shouldn’t be hit with a tax bill for it.”
Linda May, who serves on East Palestine’s City Council, praised the bill’s drafters for working across party lines.
“I think that working together is how we rebuild East Palestine and move forward,” she said, “and I think that’s how we help all working, and middle class Americans and our small businesses.”
The measure also aims to boosts affordable housing through the low-income housing tax credit program, and carries provisions to protect Taiwanese semiconductor manufacturers in the U.S. from being taxed twice.
U.S. Sen. Ron Wyden, D-OR, is hoping to have the package approved by the end of the month, ahead of tax filing season. But the agreement faces an uphill climb, as lawmakers from both sides of the aisle have found plenty in the deal to criticize. Meanwhile, lawmakers in the House and Senate have been putting more energy into simply keeping the government open as funding deadlines loom.
Credits and deductions
Brown described the Child Tax Credit as “one of the best tools we have to make parents hard work pay off,” and argued that 575,000 kids in Ohio will benefit from the proposed changes. Under the deal, the maximum refundable credit will increase from $1,600 to $1,800 per child in the 2023 tax year. That ceiling will rise to $1,900 in 2024, and $2,000 in 2025.
Speaking alongside the CEO of the Ohio Chamber and the Ohio Business Roundtable, however, the conversation emphasized how the changes will impact Ohio’s businesses.
“As you look at research and development,” Pat Tiberi from the Ohio Business Roundtable said, “this domestic research and development (credit) is super important to getting our supply chain back, and that’s something that is occurring as we speak.”
Ohio Chamber CEO Steve Stivers praised the R&D credit as well, which allows businesses to deduct the entirety of those expenses in one tax year rather than spreading them over five. Similar changes to depreciation rules allow businesses to claim deductions for equipment.
“There are businesspeople all around this country that are suffering under the current circumstances,” Stivers argued, “whether it’s innovators that aren’t putting as much money in research and development, or small businesses that aren’t buying that new Ford F-250 for their business because they can’t expense it right now.”
“Allowing that to be expensed immediately, as opposed to spread over five years is going to result in more investment in American innovation, which is going to grow our economy,” he added.
They both emphasized the importance of increasing access to the Low Income Housing Tax Credit. Stivers noted there’s a shortage of about a quarter million housing units in Ohio.
“The Low Income Housing Tax Credit has real world consequences,” Tiberi added. “Whether it’s in Mansfield, Ohio, or in a rural part of the community in Columbiana County. It’s important and it makes a difference for people who are looking for workforce housing or other types of housing.”
Both men previously served as Republicans in Congress and while they expressed optimism, they were realistic about the measure’s chances for passage.
“I think that there’ll be some grassroots pressure on this,” Stivers argued. “And I think it’s going to ultimately get done. You know, there may be some changes, and that’s the way the process works. But I feel confident that most of the stuff in this package is going to be signed into law.”
Follow OCJ Reporter Nick Evans on Twitter.
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https://ohiocapitaljournal.com/2024/01/19/u-s-sen-sherrod-brown-touts-bipartisan-deal-to-boost-child-tax-credit-rd-and-housing/
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