Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor
U.S. Capitol in front of money

Financial Planning > Tax Planning > Tax Reform

Tax Bill With 100% Bonus Depreciation May Get House Vote This Week

By Melanie Waddell

X
Your article was successfully shared with the contacts you provided.
UPDATE: House Passes Tax Bill With 100% Bonus Depreciation

New bipartisan legislation — the Tax Relief for American Families and Workers Act of 2024, which passed out of the House Ways and Means Committee on Jan. 19 —  could get voted on by the House of Representatives this week, according to House Majority Leader Steve Scalise.

The bill includes 100% bonus depreciation, as well as research and development expensing and also expands the Child Tax Credit. It also expands the small business expensing cap, increasing the amount of investment that a small business can immediately write off to $1.29 million from the $1 million cap enacted in 2017.

Senate Finance Committee Chairman Ron Wyden, D-Ore., and House Ways and Means Committee Chairman Jason Smith, R-Mo., agreed on the bipartisan legislation Jan. 16.

The Tax Foundation explained in a recent blog post that the bill would temporarily extend three business provisions established as part of the 2017 tax law — “bonus depreciation, research and development (R&D) expensing (only for domestic R&D), and a more generous interest limit.”

The package “would also provide a more generous child tax credit (CTC) by adjusting the refundable and base CTC amounts for inflation, providing an income lookback when calculating the credit value, and phasing in the refundable CTC maximum faster for households with multiple children,” the Tax Foundation wrote.

“Paired with these changes are other items like a tax agreement with Taiwan, an increase in enforcement for the pandemic-era employee retention credit, and an increase in the generosity of low-income housing tax incentives,” the group explained.

The Tax Foundation does have its concerns, since most of the tax changes expire at the end of 2025. As a result, the temporary tax policies will “deliver no long-term economic benefits and can obscure the long-run cost of a policy when they are eventually extended,” it pointed out.

The deal also provides retroactive tax relief for 2022 and 2023, “which does not change forward-looking economic incentives,” the group wrote.

Melanie Waddell

@Think_MelanieW

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.