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Regulation and Compliance > Legislation

GOP Senators Block Tax Bill With 100% Bonus Depreciation

By Melanie Waddell

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Republican senators blocked from further action Thursday The Tax Relief for American Families and Workers Act of 2024, H.R. 7024, which includes 100% bonus depreciation.

Senate Majority Leader Chuck Schumer, D-N.Y., said Thursday afternoon on the Senate floor that he was “saddened” that Republicans blocked a move to an executive session on the legislation.

The full House passed the bill in late January by a 357-70 vote.

The bill includes 100% bonus depreciation, allows for immediate research and development expensing and expands 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.

“Voting against a paid-for, bipartisan compromise that sailed through the House is one of the grossest abdications of responsibility from Senate Republicans in recent memory,” Rep. Richard Neal, D-Mass., ranking member on the House Ways and Means Committee, added in a statement Thursday.

“You cannot call yourself a governing party and act so blatantly partisan or political,” Neal said.  The 16 million children who could’ve benefited from this relief don’t know one political party from the other, but the American people are sure to remember Republicans’ failure.”

Schumer said Tuesday on the Senate floor that he ”filed cloture on this important piece of legislation, and senators should expect to vote on this measure Thursday.”

“Democrats are ready to go,” Schumer said. “The American people need tax relief. The big question right now is this: Will Republicans join us or will they stand in the way?”

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.

Smith said Friday morning in a statement that he was “disappointed that the Senate was unable to pass the pro-family, pro-worker legislation that passed with an overwhelming majority of votes” in the House.

The legislation “maintained work requirements for the Child Tax Credit while eliminating penalties for large families. It also included broad pro-growth tax relief by restoring full deductibility for research and development, supporting over $70 billion in new investment, 2 million direct R&D jobs, and over 21 million jobs total. Allowing full and immediate expensing for machines and equipment would have added $400 billion in investment, 73,000 jobs, and greater productivity across the economy,” Smith said.

Also, “allowing businesses to deduct interest would create 867,000 new jobs and generate an additional $58 billion in take-home pay for American workers,” Smith said.

Melanie Waddell

@Think_MelanieW

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