Tax experts on hand to discuss insights on U.S. bill which provides for increases in the child tax credit
Wolters Kluwer Tax and Accounting (TAA) today shares its expert analysis of the latest news regarding the Tax Relief for American Families and Workers Act of 2024. The U.S. House of Representatives passed the Tax Relief for American Families and Workers Act of 2024 by a 357 - 70 vote on January 31, 2024. The tax briefing analysis follows:
After overwhelming bi-partisan passage in the House on January 19, the plan was to pass the bill in the House under rules that would limit the ability to amend the text but would require approval by two-thirds of the chamber.
After a delay caused by some Republican members who were trying to get an increase in the state and local tax deduction limit added to the bill, as well as modifications of the child tax credit, an agreement was made to consider those in a separate bill in the near future. As a result, the legislation passed by the House is the same version that was passed out of committee.
Key provisions in the Tax Relief for American Families and Workers Act of 2024
The bill provides for increases in the child tax credit, delays the requirement to deduct research and experimentation expenditures over a five-year period. It also extends the100% bonus depreciation through 2025, and increases the Code Sec. 179 deduction limitation, among other business-friendly provisions. The bill would also extend tax treaty-like benefits to Taiwan and extend some disaster-related tax relief.
What's next for the Tax Relief for American Families and Workers Act of 2024? The bill now goes to the U.S. Senate. Due to the large number of provisions that are retroactively applicable to the 2023 tax year, and in some cases even earlier, the original hope was to get the bill passed before the start of the filing season. Since that deadline has passed, the goal would still be to get the bill to President Biden as soon as possible to minimize the administrative burdens on the Internal Revenue Service.
Currently, there is no clear timeline established for the Senate to take up consideration of the bill, and many Senators have indicated a desire to make changes to the bill.
Wolters Kluwer experts are available to reporters wishing to discuss any of the following key tax bill provisions including:
- Expansion of the Child Tax Credit
- Bonus Depreciation extensions
- Business interest limitation
- Disaster relief
- Immediate reduction of Research and Experiment expenditures
- Tax treaty-like benefits for Taiwan residents
- End of Employee Retention Tax Credit (ERTC) claims
Reporters are invited to contact Shannon Wherry, Associate Director, External Communications, to arrange interviews with either of the following Wolters Kluwer TAA experts:
- Mark A. Luscombe, JD, LL.M, CPA, Principal Analyst, Wolters Kluwer Tax & Accounting
- Mark Friedlich, ESQ., CPA, Vice President, Government Affairs, Wolters Kluwer Tax & Accounting
PLEASE NOTE: These materials are designed to provide accurate and authoritative information in regard to the subject matter covered. The information is provided with the understanding that Wolters Kluwer Tax & Accounting is not engaged in rendering tax advice or accounting, legal, tax or other professional services.