Midterm Elections to Shape Future Tax Credit Policies
The November elections will determine the legislative path for expiring tax provisions that impact household finances.
Updated on Oct. 15, 2026 in Taxes
Live Poll
Do you feel changes to federal tax policy will improve your personal financial situation?
The November 2026 midterm elections will determine the trajectory of upcoming tax legislation as several existing provisions expire or face shifts. Households may see policy changes regarding expiring tax credits as Congress navigates a $41.1 trillion debt limit.
Why it matters
The expiration of existing tax provisions, such as the CHIPS Act semiconductor credit, creates pressure for new legislative action. Congressional turnover following the midterms will dictate the speed and substance of how these fiscal issues are addressed.
The U.S. national debt limit currently stands at $41.1 trillion, with the government expected to reach this threshold in 2027. Meanwhile, voters have already cast 600,000 early ballots ahead of the November 2026 midterm elections that will shape future tax outcomes.
The players
Holland & Knight
A law firm that monitors and analyzes legislative and regulatory tax policy developments for clients.
The details
Legislative turnover in tax-writing committees requires time for new members to reach full capacity, which could delay action on expired measures like the enhanced premium tax credit. Congress may utilize reconciliation to pass tax legislation without minority party support, though they must balance these priorities against the projected insolvency of the Social Security trust fund in 2032 and Medicare Part A in 2033.
Timeline
End of 2025: The enhanced premium tax credit for health insurance expired.
October 13, 2026: Holland & Knight hosted a tax policy webinar.
November 2026: The midterm elections occur.
End of 2026: The CHIPS Act credit for semiconductor facilities expires.
2027: The U.S. debt limit is expected to be reached.
Money Landscape
The upcoming legislative environment follows the precedent set by the CHIPS Act, which is scheduled to see its 35% semiconductor credit expire at the end of 2026. This adds to a cycle of expiring provisions that will define the fiscal agenda for the new Congress.
Households should prepare for potential shifts in tax credit eligibility as expiring provisions like the health insurance premium tax credit remain subject to legislative renewal. Consult a tax professional to discuss how potential changes in fiscal policy might affect your financial planning for the coming tax year.
The takeaway
The November midterm results will clarify which expiring tax credits receive priority during the upcoming legislative session. Monitor updates from your financial advisor regarding any changes to tax-advantaged programs that could impact your annual budget.
Further reading
For more background on how policy changes shift the tax landscape, visit our guide on Taxes.
Source note: This article includes information reported by Thomson Reuters.
Live Poll
Do you feel changes to federal tax policy will improve your personal financial situation?
