What's Inside the $600 Billion Tax Bill Approved by House of Representatives

PHOTO: Members of the House of Representatives leave Capitol Hill in Washington, Dec. 11, 2015, after a voice vote to approve a short-term spending bill, and allow more time to finalize a $1.1 trillion government-wide spending bill and tax packageJ.Scott Applewhite/AP Photo
Members of the House of Representatives leave Capitol Hill in Washington, Dec. 11, 2015, after a voice vote to approve a short-term spending bill, and allow more time to finalize a $1.1 trillion government-wide spending bill and tax package

The House passed the Republican-backed tax package today negotiated with Democrats, the chamber’s second-to-last order of business before leaving Washington for the year.

The bill, totaling more than $600 billion, was negotiated with the must-pass $1.1 trillion spending deal Congress must pass by Tuesday, when the government is set to run out of money.

It was passed this afternoon 318-109, with 77 Democrats joining with 241 Republicans to pass the measure.

A combination of temporary and permanent tax breaks, the deal struck by Congressional leaders would impact individual taxpayers, businesses and President Obama’s signature health law.

Here's a look at what's included in the bill.

Tax Credits for Children, College, School Supplies

Under the deal, low-earning parents and working families will hold onto more of their paychecks, and take advantage of the deal’s $1,000 child tax credit. Some students will be able to keep up to $4,000 for college expenses, and teachers will be able to keep $250 for buying school supplies for their classrooms.

Write-Offs for Charitable Donations, Research

The agreement also includes several items on charitable contributions, allows businesses to write off research expenses, and includes provisions that will let some homeowners keep more money after renegotiating a mortgage.

Obamacare

Obamacare would also be impacted by the measure, which includes language limiting the amount of money the federal government can provide insurance companies. The deal also delays the healthcare law’s medical device tax for two years.

Write-Offs for Alcohol, Race Horses, Movie Production

Inserted in the package are breaks that would also benefit hard cider producers, rum vendors, racehorse owners, and movie studios.

Republicans say the measure will put Congress on the path to passing major tax reform, and provides some measure of certainty to taxpayers and businesses.

"I've been on the Ways and Means Committee for 15 years and we've been trying to get this kind of tax policy in place for hard-working families, for successful small businesses, for new businesses, for as long as I've been here," House Speaker Paul Ryan, R-Wisconsin, said Wednesday.

Democrats and budget watchdogs say elements of the deal that aren’t paid for would add to the national debt.

“The certainty of this bill is that we will explode future deficits,” House Democratic Whip Steny Hoyer, D-Maryland, said on the House floor today.

The House is set to take up the $1.1 trillion omnibus spending bill Friday before adjourning for the year.