House Passes Tax Relief for American Families and Workers Act

Yesterday, the house passed H.R. 7024 – the Tax Relief for American Families and Workers Act. This bill includes provisions such as:

1. 1. Expanding bonus depreciation back to 100% for 2023 – 2025
   2. Restoring Section 174 R&D expensing for 2022 – 2025
   3. An expanded low-income housing tax credit
   4. Restoring the calculation for 163(j) interest expense limitations purposes so that ATI is calculated without regard to any deduction taken for depreciation or amortization
   5. Increasing 179 expensing
   6. Elimination of the Employee Retention Tax Credit
   7. Increasing reporting requirements for 1099-MISC & 1099-NEC from $600 to $1,000 (adjusted for inflation)
   8. Expanded Child Tax Credit for Individuals

The bill next moves on to the Senate for consideration.

As these changes could impact your 2022 and 2023 tax filings, we are continuing to monitor this situation closely. Please reach out to us at maner@manercpa.com or by calling us directly at 517-323-7500 with any questions or concerns related to this tax bill.