WASHINGTON, D.C. -- U.S. Representative Bill Huizenga says the budget bill signed into law last week will help families. The Fourth District West Michigan Republican explained how on West Michigan's Morning News.
"The biggest win in all of this is making sure that the per-child tax credit stays in place. That would've affected 40 million families (in the $30,000 to $80,000 annual income range). We know that there's going to be a new savings account that parents are going to be able to start for their kids," Huizenga told WOOD Radio.
He said the legislation extends several provisions of the Tax Cuts & Jobs Act of 2017, including the $2,000 per-child credit.
The measure also provides a $500 per-child boost from 2025 through 2028. TCJA amended the Internal Revenue Code of 1986.
The legislation also includes a provision allowing a deduction for interest paid on auto loans for American-made vehicles beginning this year.
"That encourages that reshoring of so much of that manufacturing that had left the United States. It's trying to get it back here into our borders. And make sure that our workers are reaping those benefits," Huizenga said.
The deduction will be capped at $10,000 per year. It is available to single filers with an Adjusted Gross Income up to $100,000 and joint filers whose income is no more than $200,000.
The bill extends a 100-percent bonus depreciation for various investments and the section 199A pass-through business deduction. Also, the $10,000 SALT (state and local tax) cap from the Tax Cuts & Jobs Act is being extended, but with larger cap of $40,000 this year. It will be subject to phasedowns for people making more money.
Huizenga said the legislation impacts working families.
"No tax on tips, for example," he told host Steve Kelly. "There's a lot of folks out there who are dependent on that. Same thing with overtime. And there's qualifications in there. But at the end of the day, this is going to put more money into people's pockets. And that should be a win in everybody's book but not everyone's willing to view it that way."
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