Today the Senate failed to pass the American Families and Worker’s Act of 2024 (TRAFWA) by a vote of 48 to 44 (it required 60 votes to pass). This is the bill that was passed by the House in January 2024 on a vote of 357 to 70. At the time the bill passed the House, it had bi-partisan support, and commentators were expecting it to pass swiftly.
Had it passed, the bill would have, among other things:
- Increased the Child Tax Credit;
- Retroactively reinstated current expensing for domestic qualified research expenses, 100% bonus depreciation, and the larger business interest expense deduction;
- Significantly increased Employee Retention Credit (ERC) penalties and retroactively imposed a January 31, 2024, cutoff date for new ERC claims; and
- Provided additional disaster relief for those impacted by federally declared disasters occurring after 2019.
At this stage, it is highly unlikely that there will be any significant tax legislation passed until after the November 2024 election. However, we will keep you posted as any news develops.
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