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As a CPA, I want to inform you about the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024), recently passed by the House of Representatives. This bill, sponsored by Rep. Jason Smith, aims to provide significant tax relief, particularly for small businesses and families.
Key provisions of the bill include immediate expensing for domestic research, 100% bonus depreciation for certain property (from 80% in 2024 per the Tax Cut & Jobs Act of 2017), and relaxed rules on interest expense limitations. Additionally, the bill modifies the child tax credit, increasing the maximum refundable amount and adjusting the calculation method based on the number of qualifying children.
However, it's important to note that the bill accelerates the deadline for submitting employee retention credit claims to January 31, 2024, which may impact some businesses.
From a budget perspective, the bill is estimated to reduce federal revenues by approximately $399 million over 10 years.
While the bill has passed the House with strong bipartisan support, its fate in the Senate remains uncertain. There are discussions over potential amendments, and the timing of the Senate vote is unclear. Nonetheless, as your CPA, I recommend staying informed about this legislation as it could have significant implications for your business and personal taxes.
I'll continue to monitor developments and keep you updated on how this bill may affect your financial situation. In the meantime, if you have any questions or concerns, please don't hesitate to reach out.