The U.S. House of Representatives passed H.R. 7024, the Tax Relief for American Families and Workers Act of 2024, with bipartisan support. The bill, now with the Senate’s Finance Committee, aims to reinstate tax incentives for research and development (R&D) and small business investments, along with other measures, according to SEMA.
The $78 billion bipartisan tax bill restores immediate expensing for R&D expenditures from 2021 to 2025, encouraging innovation and competitiveness. It also addresses interest deductibility and expands small business expensing capabilities.
Key provisions include allowing businesses to deduct the full cost of their U.S.-based R&D investments for the year they’re made and restoring full expensing for investments in machinery, equipment and vehicles. Additionally, the bill increases the small business expensing cap to $1.29 million and adjusts the reporting threshold for businesses using subcontract labor to $1,000, indexed for inflation.
The Tax Relief for American Families and Workers Act is the result of bipartisan negotiations led by House Ways and Means Committee Chair Jason Smith and Senate Finance Committee Chair Ron Wyden.
SEMA said it supports these measures, advocating for the interests of its member companies and the broader economy.
