Tax Legislation on the Horizon
February 7, 2024

We want to make you aware of a piece of newly proposed tax legislation, The Tax Relief for American Families and Workers Act of 2024 (H.R. 7024).

 

Proposed Changes

The Bill includes many changes, but the impactful provisions included in the bill for many taxpayers include the following:

  1. Allow immediate deduction of domestic research and development expenses
  2. Less restrictive limits on interest expense deductibility
  3. Increase bonus depreciation to 100%

The changes above, if passed, will apply to the 2023 tax year and could reduce your total tax liability for the upcoming payment deadlines. Additionally, some of these provisions can be applied to 2022 tax returns. The current version of the legislation provides for the mechanism on how to reflect these changes to prior years, but we will need final guidance in the legislation or from the IRS.

 

Current Status

The proposed legislation was overwhelmingly passed by the House with a vote of 357-70 and is currently waiting on the Senate. The fate of the legislation is uncertain, and legislators are under pressure to pass the legislation before many taxpayers begin filing their tax returns for the 2024 filing season. The Senate is currently in session, but a two-week Senate recess starts on February 12. It is possible the Senate could vote on the proposed legislation as is, or they could send the Bill back to the House for changes.

We will continue to monitor the status of this legislation and will update you as soon as new information arrives. In the meantime, if you have any questions, please reach out to a member of your service team or call us at (847) 205-5000.

 

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