Congress reaches bipartisan deal on tax credits for children, corporations

Lawmakers on Capitol Hill struck a $70 billion bipartisan deal Tuesday to boost child tax credits and cut taxes for corporations, marking a rare agreement across party lines on contentious policy issues in an election year.

The legislation will be retroactive, covering three calendar years — 2023 through 2025 — and primarily benefit lower-income families who currently earn too little to claim full credits, and those with multiple children.

Most families currently receive the maximum $2,000 per-child credit. Their benefits will remain unchanged for 2023 and 2024 but will likely rise $100, to $2,100, in 2025 because they will be indexed to inflation for the first time.