Tax Relief for American Families and Workers Act of 2024

Hozzl · 2024-08-01T11:08:19Z

Explore the details of House Bill 7024 Tax Relief for American Families and Workers Act of 2024 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Taxation. Stay informed on legislative developments.

8/1/2024, 11:08 AM

Congressional Summary of HR 7024

Tax Relief for American Families and Workers Act of 2024

TITLE I--TAX RELIEF FOR WORKING FAMILIES

This title modifies the calculation of the refundable portion of the child tax credit to require the multiplication of the credit amount in calendar years 2023-2025 by the number of qualifying children. The maximum refundable amount per child of such credit is increased to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025, with an inflation adjustment beginning after 2023.

The title allows taxpayers to elect in 2024 and 2025 to use prior year earned income in calculating their earned income tax credit

TITLE II--AMERICAN INNOVATION AND GROWTH

This title allows taxpayers to delay the date on which they must begin deducting their domestic research or experimental research costs over a five-year period until 2026. Taxpayers may therefore expense such costs incurred between 2022-2026.

The title extends the allowance for depreciation, amortization, or depletion in determining the limitation of the business interest deduction. It also extends 100% bonus depreciation and increases the limitations on expensing of depreciable business assets.

TITLE III--INCREASING GLOBAL COMPETITIVENESS

Subtitle A--United States-Taiwan Expedited Double-Tax Relief Act

United States-Taiwan Expedited Double-Tax Relief Act

This subtitle sets forth special rules for the taxation of certain residents of Taiwan, including rules for the reduction of withholding taxes, the application of permanent establishment rules, the treatment of income from employment, and the determination of Taiwanese residency, including rules for dual residents.

Subtitle B--United States-Taiwan Tax Agreement Authorization Act

United States-Taiwan Tax Agreement Authorization Act

This subtitle grants the President authority to negotiate and enter into a U.S.-Taiwan tax agreement after the tax provisions of this title are enacted and effective.

TITLE IV--ASSISTANCE FOR DISASTER-IMPACTED COMMUNITIES

Federal Disaster Tax Relief Act of 2024

This title excludes from gross income, for income tax purposes, compensation for losses or damages due to certain wildfires. It applies only to payments received by a taxpayer after 2019 and before 2026.

The title also excludes payment for compensation for losses or damages from the derailment of a train in East Palestine, Ohio, on February 3, 2023.

TITLE V--MORE AFFORDABLE HOUSING

This title increases the low-income housing tax credit ceiling to 12.5% for calendar years 2023-2025. It also lowers the bond-financing threshold to 30% for projects financed by bonds issued before 2026.

TITLE VI--TAX ADMINISTRATION AND ELIMINATING FRAUD

This title increases the threshold for reporting income earned by an independent contractor from $600 to $1,000, with an adjustment to the increased amount for inflation.

The title increases penalties for aiding and abetting the understatement of tax liability with respect to the COVID-related employee retention tax credit.

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Current Status of Bill HR 7024

Bill HR 7024 is currently in the status of Bill Introduced since January 17, 2024. Bill HR 7024 was introduced during Congress 118 and was introduced to the House on January 17, 2024. Bill HR 7024's most recent activity was Cloture motion on the motion to proceed to the measure presented in Senate. (CR S5541) as of July 29, 2024

Bipartisan Support of Bill HR 7024

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 7024

Primary Policy Focus

Taxation

Potential Impact Areas

AccidentsAdministrative law and regulatory proceduresAsiaCongressional oversightDepartment of the TreasuryFiresHazardous wastes and toxic substancesImmigration status and proceduresIncome tax ratesLow- and moderate-income housingNatural disastersOhioProperty taxRailroadsTaiwanTax treatment of familiesTaxation of foreign income

Alternate Title(s) of Bill HR 7024

Tax Relief for American Families and Workers Act of 2024Tax Relief for American Families and Workers Act of 2024United States-Taiwan Tax Agreement Authorization ActUnited States-Taiwan Expedited Double-Tax Relief ActFederal Disaster Tax Relief Act of 2024United States-Taiwan Expedited Double-Tax Relief ActTax Relief for American Families and Workers Act of 2024United States-Taiwan Tax Agreement Authorization ActFederal Disaster Tax Relief Act of 2024Federal Disaster Tax Relief Act of 2024Tax Relief for American Families and Workers Act of 2024United States-Taiwan Tax Agreement Authorization ActUnited States-Taiwan Expedited Double-Tax Relief ActUnited States-Taiwan Expedited Double-Tax Relief ActFederal Disaster Tax Relief Act of 2024United States-Taiwan Tax Agreement Authorization ActTax Relief for American Families and Workers Act of 2024To make improvements to the child tax credit, to provide tax incentives to promote economic growth, to provide special rules for the taxation of certain residents of Taiwan with income from sources within the United States, to provide tax relief with respect to certain Federal disasters, to make improvements to the low-income housing tax credit, and for other purposes.

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