In a concerted effort to address the evolving economic landscape and provide much-needed support to American families and workers, legislators have introduced the Tax Relief for American Families and Workers Act of 2024. This bipartisan proposal aims to enact crucial changes to the tax framework, offering incentives and relief both to businesses and households in need.
The proposal’s key highlights include:
Revamping the Treatment of Research and Experimental (R&E) Expenditures Capitalization (Section 174):
- Enable the immediate deduction of R&E expenses incurred in tax years starting after Dec. 31, 2021.
- Postpone the domestic R&E capitalization period from five years to commence in 2026.
Extending 100% Bonus Depreciation:
- Prolong the availability of 100% bonus depreciation for qualified property placed in service between Dec. 31, 2022, and Jan. 1, 2026.
- For property placed in service after Dec. 31, 2025, and before Jan. 1, 2027, maintain bonus depreciation at 20%.
Child Tax Credit:
- Maximum credit would increase from $1,600 to $1,800 for 2023.
- Maximum refundable child tax credit amount would be multiplied by the number of qualifying children for tax years 2023, 2024 and 2025.
Employee Retention Credit Elimination:
- Eliminate the ability to make an Employee Retention Credit claim after Jan. 31, 2024
A Shared Mindset for Growth—Get in Touch with Us
As discussions surrounding the Tax Relief for American Families and Workers Act of 2024 continue, LTax will work closely with our clients to develop strategic tax planning initiatives aligned with the provisions of the proposed legislation.
For more information or to request a free tax planning consultation, contact us here or call us at 561.453.1441.
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