PROVIDENCE, R.I. (WPRI) — Recently, Congress passed a measure that will boost federal agency spending and award tax cuts to both families and businesses.
The approved tax extenders package permanently extends several benefits that would have expired by 2016.
Rhode Island Senator Jack Reed, who supported the bill, said it will help families save more money in their wallet.
“One of the problems we faced was up until recently, many of these tax credits were extended a year at a time, so they would technically expire in a year,” said Sen. Reed. “And one of the things that took place in this tax provision is these were made permanent, many of them. Now there’s more confidence in the tax system that these credits will be available several years from now.”
The law will also provide more financial certainty for local businesses.
The bill extends more than 50 expiring cuts, with more than 20 of those becoming permanent.
Some key provisions to the bill include, the earned income tax credit, the child tax credit, and the American Opportunity tax credit.
The latter allows families and students paying for college to receive money back on their taxes.