The leadership of the House Ways and Means Committee and the Senate Finance Committee has agreed on changes to 2014 tax legislation that should be passed by Congress before the January 29th deadline. Some of the 2017 tax cuts for business passed under the previous administration will be revived. Deductions for research and development costs will be expanded and claimed in the year expended. Small businesses will benefit by expensing capital costs in the year incurred.
Refundable child tax credits will be enhanced especially for multi-child and low-income families. This will be facilitated by raising the tax credit refundable cap and by introducing an adjustment for inflation.