Bipartisan Tax Bill Is Stuck in Senate Limbo After Broad House Approval

A bipartisan bill to expand the child tax credit and reinstate a set of business tax breaks has stalled in the Senate after winning overwhelming approval in the House, as Republicans balk at legislation they regard as too generous to low-income families.

The delay of the $78 billion tax package has imperiled the measure’s chances and reflects the challenges of passing any major legislation in an election year. Enacting a new tax law would give President Biden and Democrats an achievement to campaign on, something that Republicans may prefer to avoid.

The House approved the measure in January by a vote of 357 to 72 — a major bipartisan feat in a Republican-led body that has toiled to legislate — and its backers had hoped to get it across the finish line around the start of tax-filing season at the end of that month. But with just over a month before the filing deadline, it has not moved in the Senate.

The package, which would be in effect through 2025, would expand the child tax credit and restore a set of tax breaks related to business research costs, capital expenses and interest. It would also include a boost to a tax credit encouraging the development of low-income housing, tax relief for disaster victims and tax breaks for Taiwanese workers and companies operating in the United States.