ASA-Endorsed Federal Tax Bill Passes Committee, Full House Could Happen this Week
A bipartisan federal tax bill, endorsed by ASA, passed the U.S. House Ways & Means Committee with 40 votes in favor and 3 votes against. Congressional sources say the full U.S. House of Representatives may vote on the legislation this week.
The following provisions in H.R. 7024, the Tax Relief for American Families and Workers Act of 2024, could positively impact automotive repair facilities:
- Reclassifying interest paid on certain business loans as an allowable deduction and providing for a 100 percent bonus depreciation allowance for qualified property – such as equipment and vehicles – acquired and placed in service between Dec. 31, 2022, and Jan. 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.
If enacted, the bill would also expand the Child Tax Credit. It would change how the maximum refundable credit is calculated by including consideration for the number of children in a household. Furthermore, it would increase 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.
Click here to read a section by section summary of the legislation.