UPDATE: House Passes Tax Bill With 100% Bonus Depreciation
New bipartisan legislation — the Tax Relief for American Families and Workers Act of 2024, which passed out of the House Ways and Means Committee on Jan. 19 — could get voted on by the House of Representatives this week, according to House Majority Leader Steve Scalise.
The bill includes 100% bonus depreciation, as well as research and development expensing and also expands the Child Tax Credit. It also expands the small business expensing cap, increasing the amount of investment that a small business can immediately write off to $1.29 million from the $1 million cap enacted in 2017.
Senate Finance Committee Chairman Ron Wyden, D-Ore., and House Ways and Means Committee Chairman Jason Smith, R-Mo., agreed on the bipartisan legislation Jan. 16.
The Tax Foundation explained in a recent blog post that the bill would temporarily extend three business provisions established as part of the 2017 tax law — "bonus depreciation, research and development (R&D) expensing (only for domestic R&D), and a more generous interest limit."