The Tax Relief for American Families and Workers Act of 2024

Our team has followed the Tax Relief for American Families and Workers Act of 2024 (H.R.7024) for a few months. The U.S. House of Representatives passed the bill on January 31, 2024, but as of the end of May, the Senate has not addressed it. The bill garnered 83% approval votes in the House.

While we wait for the Senate to take action on this bill, we want to discuss its scope if it is passed as it is currently written. The changes would include:

• Immediately reinstates domestic research and experimental expenditures retroactively to the tax year 2022 and will remain in effect for the tax year ending January 1, 2026
• It extends 100% bonus depreciation on qualified properties from January 1, 2023, through December 31, 2025, and adjusts for inflation for tax years 2024 and 2025 back to 30% of EBITA.
• Increases the refundable Child Tax Credit to $1,800 from the current $1,600 for the 2023 tax year. The tax credit would increase by $100.00 yearly through December 31, 2025.
• The Employee Retention Tax Credits will be terminated as of January 31, 2024, to counteract the fraudulent claims that have been reported.

The goal of getting this bill to President Biden's desk as soon as possible remains to minimize the administration's burdens on the IRS. Currently, there is no clear timeline established for the Senate to take up consideration of the bill. There are also a number of Senators who have indicated a desire to make changes to the bill as it is currently written.

If you have any questions about how this bill will impact your taxes if passed, please contact our team.