Tax Relief for American Families and Workers Act of 2024

Bill: 118-hr-7024
Sponsor: Rep. Smith, Jason [R-MO-8]
Introduced: 2024-01-17 in the House
Policy area: Taxation
Subjects: Accidents
Administrative law and regulatory procedures
Asia
Congressional oversight
Department of the Treasury
Fires
Hazardous wastes and toxic substances
Immigration status and procedures
Income tax rates
Low- and moderate-income housing
Natural disasters
Ohio
Property tax
Railroads
Taiwan
Tax treatment of families
Taxation of foreign income

Summary:
action_date: 2024-01-17
text: 
 
Tax Relief for American Families and Workers Act of 2024

 
This bill increases and modifies child tax credit provisions, increases depreciation allowances to promote economic innovation and growth, provides special rules for the taxation of residents of Taiwan with income from U.S. sources, increases tax relief provisions for losses due to natural disasters and wildfires, and increases the low-income housing tax credit.

action_date: 2024-01-23
text: 

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.

action_date: 2024-01-31
text: 

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.


Legislative actions:
action_date: 2024-08-01
text: Motion by Senator Schumer to reconsider the vote by which cloture on the motion to proceed to the measure was not invoked (Record Vote No. 230) made in Senate.
action_date: 2024-08-01
text: Cloture on the motion to proceed to the measure not invoked in Senate by Yea-Nay Vote. 48 - 44. Record Vote Number: 230. (CR S5749)
action_date: 2024-08-01
text: Motion to proceed to measure considered in Senate. (CR S5723)
action_date: 2024-07-29
text: Cloture motion on the motion to proceed to the measure presented in Senate. (CR S5541)
action_date: 2024-07-29
text: Motion to proceed to consideration of measure made in Senate. (CR S5541)
action_date: 2024-03-21
text: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 349.
action_date: 2024-03-20
text: Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
action_date: 2024-02-01
text: Received in the Senate.
action_date: 2024-01-31
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2024-01-31
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 357 - 70 (Roll no. 30). (text: CR H343-350)
action_date: 2024-01-31
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 357 - 70 (Roll no. 30). (text: CR H343-350)
action_date: 2024-01-31
text: Considered as unfinished business. (consideration: CR H358)
action_date: 2024-01-31
text: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
action_date: 2024-01-31
text: DEBATE - The House resumed debate on H.R. 7024.
action_date: 2024-01-31
text: UNANIMOUS CONSENT REQUEST - Mr. Smith (MO) asked unanimous consent that debate be extended by 20 minutes to be controlled by the gentleman from Massachusetts, Mr. Neal. Objection heard.
action_date: 2024-01-31
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 7024.
action_date: 2024-01-31
text: Considered under suspension of the rules. (consideration: CR H343-358)
action_date: 2024-01-31
text: Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
action_date: 2024-01-23
text: Placed on the Union Calendar, Calendar No. 288.
action_date: 2024-01-23
text: Committee on Rules discharged.
action_date: 2024-01-23
text: Committee on Rules discharged.
action_date: 2024-01-23
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 118-353, Part I.
action_date: 2024-01-23
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 118-353, Part I.
action_date: 2024-01-19
text: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 40 - 3.
action_date: 2024-01-19
text: Committee Consideration and Mark-up Session Held
action_date: 2024-01-17
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2024-01-17
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2024-01-17
text: Introduced in House
action_date: 2024-01-17
text: Introduced in House