House Passes Tax Bill With 100% Bonus Depreciation

The full House passed late Wednesday by a 357 to 70 vote H.R. 7024, the Tax Relief for American Families and Workers Act of 2024, which includes 100% bonus depreciation, as well as research and development expensing and an expansion of the Child Tax Credit.

The $79 billion legislation, which passed out of the House Ways and Means Committee on Jan. 19, also raises the small-business expensing cap, increasing the amount of investment that a small business can immediately write off to $1.29 million from the $1 million cap enacted in 2017.

Senate Finance Committee Chairman Ron Wyden, D-Ore., and House Ways and Means Committee Chairman Jason Smith, R-Mo., agreed on the bipartisan legislation Jan. 16.

The legislation will now have to be passed by the Senate.

The bill ”locks in $600 billion in pro-growth tax policies by restoring three key provisions from President Trump’s successful 2017 tax reform that have a proven record of creating millions of jobs, raising workers’ wages, and sparking more investment and economic growth here at home,” House Ways and Means Committee Chairman Jason Smith, R-Mo., said Wednesday night on the House floor.

It “restores full R&D expensing, interest deductibility, and 100% expensing. Each of these policies will help American businesses grow, create jobs, and sharpen their competitive advantage against China. This will create over $70 billion in new R&D investment and over 900,000 new jobs; increase small business investment by $400 billion, and generate $58 billion in additional take-home pay for American workers.”

America’s small businesses, Smith added, “are being pummeled by high prices and interest rates.”