Bipartisan Tax Package Passes the House

On January 31st, the House of Representatives passed the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) by a bipartisan vote of 357-70. If passed by the Senate and signed into law, the legislation would reinstate and extend certain provisions from the 2017 Tax Cuts and Jobs Act. The bill increases and modifies child tax credit provisions, increases depreciation allowances to promote economic innovation and growth, provides special rules for the taxation of residents of Taiwan with income from U.S. sources, increases tax relief provisions for losses due to natural disasters and wildfires, and increases the low-income housing tax credit. Key business provisions include:

• Business Interest Expense
  • R. 7024 would allow businesses to include depreciation and amortization when determining their adjusted taxable income for 2024 and 2025.
• Payment Reporting
  • R. 7024 would increase the reporting threshold on 1099-NEC and 1099-MISC forms for payments from $600 to at least $1,000 beginning in 2024.
• Employee Retention Credit
  • R. 7024 would eliminate any claims for COVID-related Employee Retention Tax Credits after January 31 2024.
• Bonus Depreciation

H.R. 7024 would pause the phase-out of the “bonus depreciation” for equipment, machinery, and other qualified assets which was implemented by the 2017 Tax Cuts and Jobs Act.  Pausing the phase-out would allow for full bonus depreciation to continue.