In Illinois, working families and job creators make up the backbone of our communities — people who work hard and play by the rules. In 2017, we passed what I consider to be generational tax reform that lifted the middle class up and put more of the money earned by workers back into their pockets. Through that process, we learned that a pro-growth, pro-family tax code works. That’s why it’s critical that the Senate pass our bipartisan Tax Relief for American Families and Workers Act.
The Tax Relief for American Families and Workers Act, which passed out of the House by a vote of 357-70, builds on the tax reform we passed in 2017, bolstering the financial security of Illinois families and small businesses at a time when they need it most. As I’ve traveled throughout Illinois, I hear regularly from small businesses and workers about the negative impact of inflation, the rise in energy and grocery costs and lack of incentives to build a business in Illinois.
As a member of the House Ways and Means Committee with jurisdiction over all tax policy considered in Congress, I was proud to work with my colleagues in a bipartisan way to write and pass this tax package.
I am the proud lead sponsor of the Affordable Housing Credit Improvement Act, bipartisan legislation to strengthen the low-income housing tax credit. Throughout its 37-year history of bipartisan support, the housing credit, established under Ronald Reagan, has financed the production of over 3.7 million homes nationwide. The need for affordable housing in Illinois is stronger than ever, and I fought to include provisions from my bill in this larger tax package to benefit affordable housing in our state.
In the Tax Relief for American Families and Workers Act, we secured improvements from my legislation that will increase the supply of low-income housing. Our provisions bolster the housing credit with increased state allocations and a reduced bond financing requirement, promoting more public-private investment in affordable housing. Getting this passed means more than 200,000 affordable housing units can be built for working families and seniors across America over the next two years.
Improvements to child tax credits
Additionally, the bill includes sensible improvements to the child tax credit that give a boost to our rural communities and low-income families. The legislation increases the refundable portion of the child tax credit to allow families to claim more of the credit amount, as well as eliminate an unintended penalty currently in place that impacts families with multiple children. The bill also maintains important work incentives that will not only help families get out of poverty quicker, but also encourage individuals to get back into the workforce.
On top of important housing and pro-work, pro-family provisions, the Tax Relief for American Families and Workers Act builds on growth-minded tax policy that will enable job creators in Illinois to stay competitive in the global economy.
To support small businesses, we boost interest expense deductions and allow for the 100% expensing of investments in facilities and machinery. We also restore the immediate expensing of research and development investments made in America, incentivizing companies to stay in the U.S. and increasing our competitiveness against China.
The Tax Relief for American Families and Workers Act will provide relief for Illinoisans at a time when our communities need it most. With the cost of goods and services still high and inflation driving down wages, our bipartisan tax bill will help working families and encourage made-in-Illinois investments that will create jobs and lead to higher wages. It’s time for the Senate to pass our historic, bipartisan tax relief bill and send it to President Joe Biden’s desk so we can deliver for our communities throughout Illinois.
U.S. Rep. Darin LaHood (R-Peoria) serves the 16th Congressional District.
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