Through NASE, the self-employed and micro-businesses have a powerful voice representing their interests. NASE has a strong track record of advocating for its Members on Capitol Hill.
On January 31, the House in an overwhelming bipartisan vote of 357-70 vote passed the Tax Relief for American Families Act. We anticipate that the Senate will follow suit and consider the package after the President's Day recess.
The bill is a bicameral, bipartisan effort by Senate Finance Chairman Ron Wyden (D-OR) and House Ways & Means Committee Chairman, Jason Smith (R-MO) and includes several significant provisions, including the expansion of the Child Tax Credit (CTC), restoration of Section 174 expensing for US-based R&D investments, and 100% 'bonus' depreciation through the end of 2025 on an elective retroactive, seamless basis. Notably, the bill also includes the expansion of Section 179 small business expenses, as well as disaster relief measures.
CTC Expansion: The Tax Relief for American Families Act would expand the CTC for millions of low income families, phasing in the credit per child for low-income families so they receive the same credit for each of their children. The bill would gradually raise the cap on refundability by 2025, where parents earning $15,000 with two children would go from receiving $1,875 to $3,600. It would also allow parents to use income from previous years if those would result in larger credit.
Expansion of Section 179: Under the bill, businesses of all sizes would be able to immediately deduct the cost of U.S. based Research and Development (R&D) investments.
'Bonus' depreciation: The bill extends 100% bonus depreciation from January 1, 2023, through December 31, 2025.
Section 179 Expansion: The bill would increase the amount of investment that a small business can immediately write off to $1.29 million from $1 million.
Disaster Relief: The tax package includes disaster relief covering recent hurricanes, flooding, wildfires, and the Ohio rail disaster.
If signed into law, the Tax Relief for American Families would provide significant benefits for small businesses and entrepreneurs.
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NASE.org is the official website of the National Association for the Self-Employed.
Courtesy of NASE.org https://www.nase.org/nase-in-action/advocacy/2024/02/02/house-passes-tax-relief-for-american-families-act