Late last evening the House approved H.R. 7024, the “Tax Relief for American Families and Workers Act of 2024,” by a vote of 357 to 70. Forty-seven Republicans and 23 Democrats voted against the legislation. The bill was considered under the suspension calendar, which required a two-thirds vote for passage. The legislation will next move to the Senate for its consideration, but it may be as late as March before the Senate takes any action.
The House Rules Committee will meet today to consider emergency measures governing floor debate of:
- H.R. 7160, the “SALT Marriage Penalty Elimination Act.” The bill would increase the limitation on the SALT deduction for certain married couples filing joint returns from $10,000 to $20,000. The increased limitation would apply in the case of a joint return for a taxable year beginning after December 31, 2022, and before January 1, 2024, if the taxpayer’s adjusted gross income for such taxable year is less than $500,000.
- H. Res. 987, “Denouncing the harmful, anti-American energy policies of the Biden administration, and for other purposes.”
Key business provisions of the “Tax Relief for American Families and Workers Act of 2024” include:
- Delay five-year amortization of domestic research or experimental costs until taxable years beginning after December 31, 2025.
- Continue to allow depreciation, amortization, or depletion expense to be excluded from the determination of adjusted taxable income in determining the limitation on business interest through 2025.
- Extend 100 percent business expensing for qualified property placed in service through 2025 (and through 2026 for some longer production period property) and retain 20 percent bonus depreciation for property placed in service after 2025.
- Increase the threshold for information reporting on Forms 1099-NEC and 1099-MISC from $600 to $1,000.
- Increase the section 179 deduction for small business to a maximum of $1.29 million, reduced by the amount that qualifying property exceeds $3.22 million for taxable years beginning after 2023.
- Provide disaster tax relief for individuals and businesses impacted by recent disasters; and
- Increase the Form 1099-NEC and 1099-MISC reporting threshold to $1,000 and adjusts it for inflation, applying to payments made after 2023.
The bill also includes a revenue offset that would increase promoter penalties for the employee retention tax credit to the greater of $200,000 ($10,000 for natural persons) or 75 percent of the gross income with respect to the promotion. The provision also accelerates the expiration of ERTC claims to January 31, 2024, among other changes to the bill.
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