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Regulation and Compliance > Legislation

Tax Bill With 100% Bonus Depreciation May Move Forward in Senate

By Melanie Waddell

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The Tax Relief for American Families and Workers Act of 2024, H.R. 7024, which includes 100% bonus depreciation, may be combined with the Senate-passed Radiation Exposure Compensation (RECA) Reauthorization Act, according to published reports.

The development comes about 10 weeks after the full House passed the tax bill by a 357 to 70 vote on Jan. 31.

The $79 billion legislation also includes an expansion of the Child Tax Credit through 2025 and raises 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.

The Committee for a Responsible Budget said Tuesday that “some lawmakers have recently suggested combining the House-passed Tax Relief for American Families and Workers Act of 2024 (also known as Wyden-Smith),” which would revive expiring business tax cuts via the Senate-passed Radiation Exposure Compensation (RECA) Reauthorization Act.

This act “would significantly expand payments and benefits to those who have been affected by nuclear testing,” the Committee for a Responsible Budget explained.

Punchbowl News reported that jockeying over the Wyden-Smith tax bill is ramping up in the Senate “with time running short for the package to gain traction.”

A new wrinkle, Punchbowl explained, is that “Sen. Josh Hawley, R-Mo., who has said he’s ‘favorably disposed’ toward the tax package, is now floating the idea of attaching it to his big-ticket bill reauthorizing a compensation program for radiation victims. RECA, as it’s known, got 69 votes in the Senate last month.”

Hawley told Punchbowl Monday night “that he would vote for the tax bill with RECA attached. The Missouri Republican believes this could be the difference-maker for some of his GOP colleagues.”

The Wyden-Smith bill “is fully offset albeit partially through the use of arbitrary expirations, which might lead to significant future costs,” according to the committee. “The RECA bill, by contrast, has no offsets and would add a reported $50 to $60 billion to deficits over a decade.”

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said Tuesday in the statement that the Senate “should not turn the House’s tax bill, which in its current form would not add to the debt, into a budget-buster.

Given our untenable fiscal situation, it would be preferable to move in the opposite direction of finding more savings to create a bill that would reduce the debt and do so without relying on arbitrary expirations,” MacGuineas added.

“What we should most certainly not do is turn the House’s more responsible bill into a fiscally reckless bill by adding a layer of unpaid-for spending. Given our dismal fiscal situation, tax and spending legislation should really be focused on deficit reduction,” she explained.

Melanie Waddell

@Think_MelanieW

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