In a significant move aimed at providing much-needed support and relief, the House recently passed the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024). This comprehensive tax bill, totaling approximately $78 billion, encompasses a range of provisions designed to address various aspects of the tax landscape, from enhancing support for families to reinstating critical tax breaks for businesses.
Let’s delve into some of the key highlights of this legislation and what they mean for you:
Employee Retention Credit (ERC) Changes: The bill introduces changes to the ERC, including a halt on additional claims as of January 31, 2024. This adjustment aims to streamline the process and ensure fairness in accessing this credit, with savings anticipated from the revised filing deadline.
Child Tax Credit (CTC) Expansion: With a focus on supporting families, the bill expands eligibility for the CTC, increasing the maximum refundable amount per child. This expansion, effective for tax years 2023 through 2025, seeks to alleviate financial burdens and combat child poverty, building on previous pandemic-related relief measures.
Tax Breaks for Businesses: Recognizing the importance of bolstering businesses, the legislation reinstates tax breaks from the Tax Cuts and Jobs Act and introduces amendments to various provisions affecting businesses, including:
Research or Experimental (R&E) Expenditures: The bill delays the deduction of domestic R&E costs over a five-year period, providing businesses with additional flexibility and support for innovation.
Business Interest Limitation: It extends favorable treatment for computing adjusted taxable income, ensuring continued support for businesses.
Bonus Depreciation: The bill extends 100% bonus depreciation for qualified property, providing businesses with incentives for investment and growth.
Section 179 Expensing: Businesses will benefit from increased Sec. 179 limitation amounts, enhancing their ability to expense qualifying property.
Additional Provisions: The bill encompasses various other provisions, including relief for low-income housing, disaster-affected communities, and adjustments to information reporting thresholds.
At Accavallo & Company, we recognize the importance of staying informed and proactive in navigating these legislative changes. We are committed to providing you with expert guidance and support to optimize your tax strategies and maximize your benefits.
Should you have any questions or require further assistance regarding the Tax Relief for American Families and Workers Act of 2024, please do not hesitate to reach out to us. Together, we’ll ensure that you make the most of these opportunities to strengthen your financial position.
Accavallo & Company, LLC www.aco.cpa (203) 925-9600