Page 32 - BusinessWest June 17, 2024

ACCOUNTING & TAX PLANNING >>
Mid-year Tax Planning
With A Legislation
Stalled, 2024
Sees Few Changes
BY KRISTINA D. HOUGHTON, CPA
fter overwhelming approval by the House Ways and Means Commit- tee on Jan. 19, the Tax Relief for American Families and Workers Act of 2024 was sent to the House under rules that would limit the ability to amend the text but would require approval by two-thirds of the chamber.
After a delay caused by a minor revolt of some GOP members who were try- ing to get an increase in the state and local tax deduction limit added to the bill as well as modifications of the child tax credit, an agreement was made to con- sider those in a separate bill in the near future, so the legislation passed by the House is the same version that was passed out of committee.
The bill provides for increases in the child tax credit, delays the requirement to deduct research and experimentation expenditures over a five-year period, reinstates the depreciation and amortization add-back through 2025 for pur- poses of calculating the business interest limitation, extends the 100% bonus depreciation through 2025, and increases the Code Sec. 179 deduction limita- tion, among other business-friendly provisions.
Unfortunately, the Senate never addressed the bill. Due to the large number of provisions that are retroactively applicable to the 2023 tax year, and in some cases even earlier, the original hope was to get the bill passed before the start
“The goal is still to get the bill passed as soon as possible to minimize the administrative burdens on the IRS. There is no current date set for a Senate vote, and with this being an election year, the likelihood is slim.”
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