US lawmakers reach $78 billion tax deal for businesses, families -reports

WASHINGTON (Reuters) - Congressional negotiators have agreed on a nearly $80 billion deal providing tax benefits geared toward businesses and low-income families, according to media reports on Tuesday.

The $78 billion package would temporarily expand the Child Tax Credit and boost the low-income housing tax credit while also bringing back a range of deductions for companies, Punchbowl and Politico reported, citing unidentified sources familiar with the agreement.

The deal also includes disaster tax relief and is likely to extend tax benefits for Taiwanese semiconductor companies operating in the United States, the reports said.

A spokesperson for the House Ways and Means Committee, chaired by Republican Jason Smith, said the panel would announce the deal at 9 a.m./1300 GMT.

A representative for Senate Finance Committee Chairman Ron Wyden, a Democrat, could not be reached for comment.

Any deal must still pass both the Democrat-led Senate and the Republican-controlled House of Representatives before U.S. President Joe Biden could sign it into law at a time when lawmakers are scrambling to keep the government funded.

The agreement comes as Congress aims to avert a partial government shutdown and keep federal agencies operating into March by passing a short-term spending bill to temporarily fund the U.S. government, with some spending set to expire this week.

To pay for the tax benefits package, the deal would curb an employee retention tax credit passed amid the COVID-19 pandemic aimed at helping businesses avoid layoffs, the reports said.

(Reporting by Susan Heavey; Editing by Doina Chiacu)