On December 16, the House approved, 277-148, H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act. The Senate approved the bill by a vote of 81-19 on December 15. The current tax cuts are set to expire on December 31. The president is expected to sign the bill into law.
Among other provisions, the bill would extend through January 3, 2012, unemployment insurance benefits and through 2012 the current tax rate reductions for all income levels.
In addition, the measure would extend for two years the maximum $1,000 child tax credit and changes to the child tax credit enacted in the American Recovery and Reinvestment Act (P.L. 111-5), otherwise known as the stimulus bill. H.R. 4853 also would extend for two years the increased dependent care and adoption tax credits.
The measure would extend the rules that simplified and expanded eligibility for the Earned Income Tax Credit (EITC).