On Wednesday evening, January 31, 2024, the House of Representatives passed the Tax Relief for American Families and Workers Act of 2024 by a vote of 357– 70. Support was conclusively bipartisan with 169 Republicans and 188 Democrats voting in favor of the compromise.
The deal now heads to the Senate, where Majority Leader Chuck Schumer (D – NY) will need to secure 60 votes to advance the legislation. Several senators have publicly stated they would like to markup, or make changes to, the current Bill text; however, any changes could effectively kill the Bill, as it would require it go back to the House for another vote, essentially restarting the process. Time is of the essence to pass the compromise, which contains retroactive provisions; any significant delay would make the implementation extremely difficult. While the resounding bipartisan vote in the House certainly puts pressure on the Senate to pass the compromise quickly, passage remains far from certain.
The Bill contains taxpayer-favorable alterations to the child tax credit and a trio of lapsed business provisions: bonus depreciation, research and experimental expenditures and the business interest deduction limitation, among other items. Despite protests from Republican representatives from districts in New York, the Bill does not alter the $10,000 SALT deduction cap. We discuss the contents of the Bill in more detail in Bipartisan tax deal framework released.
We will continue to monitor developments as the potential legislation heads to the Senate, and keep you updated along the way with additional details and insights.
Please reach out to your tax advisor to discuss how items contained in the Tax Relief for American Families and Workers Act of 2024 may impact your tax situation.