This morning, a bipartisan agreement was reached on a tax package known as the Tax Relief for American Families and Workers Act of 2024. The agreement includes the retroactive restoration of immediate expensing through the end of 2025 for U.S based research and development expenses, along with other tax benefits geared toward businesses and low-income families. Foreign R&D, that is costs for research performed outside of the U.S., will continue to be capitalized and amortized over 15 years. The plan would be paid for by essentially eliminating the Employee Retention Credit at the end of January. The question is now how they intend to shepherd the plan to passage with a government shutdown in sight. Still, renewed hope is available for American families and businesses.
The plan, which will be introduced as The Tax Relief for American Families and Workers Act of 2024:
- Supports working families with an enhanced Child Tax Credit
- Expands innovation and competitiveness with pro-growth economic policies like R&D expensing
- Builds up Main Street by cutting red tape and rebuilds communities struck by disasters with tax relief
- Enhances the Low-Income Housing Tax Credit
- Eliminates fraud and waste by ending the Employee Retention Tax Credit program
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