Tax Relief for American Families and Workers Act of 2024: What You Need to Know

The Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) is a bipartisan bill that was recently passed by the House of Representatives and is now awaiting consideration by the Senate. Let’s take a closer look at what’s included. 

Businesses Get a Tax Break Boost

This recent deal revives several tax benefits for businesses that expired or were phasing out. Remember the 2017 Tax Cuts and Jobs Act? Many of those perks are back!

Key features

  • R&D on Fast Track: Companies will be able to deduct the full amount of domestic R&E expenditures (Section 174 expenses) which are paid or incurred by the taxpayer during the taxable year. (goodbye, 5-year wait!).
  • New Equipment, Big Deduction: 100% deduction on new machinery and equipment purchases, boosting investment.
  • Debt Relief: Tighter limits on interest expense deductions loosened, especially helping heavily indebted companies.

These perks are temporary, expiring in 2025.

Beyond Business

  • Disaster Relief: Support for individuals and businesses hit by hurricanes, floods, wildfires, and the Ohio train derailment.
  • Affordable Housing Boost: Enhanced Low-Income Housing Tax Credit to encourage building more affordable homes.
  • Cracking Down on ERC: Faster deadline (January 31, 2024) for retroactive claims on the pandemic-era Employee Retention Tax Credit

Overall, this package offers a mix of benefits for businesses, individuals affected by disasters, and efforts to increase affordable housing.

The Tax Relief for American Families and Workers Act offers potential benefits for families and businesses. While the bill’s fate is yet to be determined, understanding its accurate provisions like the Section 174 change is crucial.

To learn more about what we do, or to request a quote, contact us at hello@finvisor.com or 415-416-6682. We’re here to help you navigate deferred revenue journal entries so you can make the most of your assets!

*This blog does not constitute solicitation or provision of legal advice and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction.*

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