The United States House of Representatives has passed the bipartisan Tax Relief for American Families and Workers Act of 2024 (H.R. 7024). It easily surpassed the two-thirds vote threshold needed to pass under the expedited rules. The bill received 357 votes in favor and 70 opposed. ASA supports this legislation.

Some of the key changes H.R. 7024 would make to the tax code, if ultimately enacted, would include:

• Reclassifying interest paid on certain business loans as allowable deductions.
• Providing for a 100 percent bonus depreciation allowance for qualified property – such as equipment and vehicles – acquired and placed in service between December 31, 2022, and January 1, 2026.
• Raising the maximum amount a business may expense for qualifying property from $1 million (reduced by the amount by which the cost exceeds $2.5 million) to $1.29 million (reduced by the amount by which the cost exceeds $3.22 million), adjusting for inflation for taxable years after 2024.
• Changing how the maximum refundable credit is calculated by including consideration for the number of children in a household.
• Increasing the maximum per-child limit from $1,600 to $1,800 for tax year 2023, along with annual increases to the cap adjusted for inflation each ensuing year through 2025.

H.R. 7024 now awaits consideration in the U.S. Senate, where it must pass before it can be signed into law by the President.

Click here for a comprehensive summary of all the bill's provisions.