House passes deal to revive expired tax breaks

Newly elected Speaker of the U.S. House of Representatives Paul Ryan (R-WI) (C) speaks to the assembled House after being elected as the new Speaker in Washington October 29, 2015.

REUTERS/Gary Cameron

The House on Thursday passed legislation that would extend certain tax breaks to low-income families, college students, teachers, parents, small businesses and big banks.

Lawmakers passed the bipartisan measure 318-109 after congressional leaders reached it as part of a major fiscal deal on Tuesday night.

The bill, which provides $650 billion in tax relief over a decade, permanently extends tax credits that stemmed from the 2009 stimulus, including a $1,000 child tax credit, the $2,500 college tuition tax credit and the earned income tax credit.

In addition, the measure permanently extends a deduction of sales taxes in states without an income tax and permanently extends several business tax breaks.

The White House on Wednesday said President Obama would sign the legislation.

"In addition to making permanent vital improvements to tax credits for working and middle-class families, this legislation also would bring certainty to small businesses, companies investing in U.S. innovation, and charities, while extending important incentives for hiring and investing in low-income communities," the White House said.

House Democratic leaders opposed the tax deal, but Republicans view the bill as a foundation for long-term tax reform that Congress could work on later down the road.

The bill was the product of negotiations between House and Senate leaders, which also produced the $1.1 trillion spending package that would fund the government through September. Both chambers of Congress are expected to vote on that measure Friday before they head home for the holidays.

  • Rebecca Shabad

    Rebecca Shabad is a video reporter for CBS News Digital.