The full House passed late Wednesday by a 357 to 70 vote H.R. 7024, the Tax Relief for American Families and Workers Act of 2024, which includes 100% bonus depreciation, as well as research and development expensing and an expansion of the Child Tax Credit.
The $79 billion legislation, which passed out of the House Ways and Means Committee on Jan. 19, also raises 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 legislation will now have to be passed by the Senate.
Raymond James analyst Ed Mills said late Wednesday that he sees "greater than 50% probability" the Senate will pass the bill. However, timing is short, "as the tax filing season has already started, and the Senate is set to go on recess at the end of next week."
With the bill now moving to the Senate, Wyden said late Wednesday that he's going to work with Senate Majority Leader Chuck Schumer, D-N.Y., "and my colleagues on both sides to get this done as soon as possible."
The Bill
The bill "locks in $600 billion in pro-growth tax policies by restoring three key provisions from President Trump's successful 2017 tax reform that have a proven record of creating millions of jobs, raising workers' wages, and sparking more investment and economic growth here at home," House Ways and Means Committee Chairman Jason Smith, R-Mo., said Wednesday night on the House floor.
It "restores full R&D expensing, interest deductibility, and 100% expensing. Each of these policies will help American businesses grow, create jobs, and sharpen their competitive advantage against China. This will create over $70 billion in new R&D investment and over 900,000 new jobs; increase small business investment by $400 billion, and generate $58 billion in additional take-home pay for American workers."
