Common questions taxpayers have regarding the proposed changes
The U.S. House of Representatives on January 31, 2024, passed H.R. 7024 [PDF 236 KB], the “Tax Relief for American Families and Workers Act of 2024,” bipartisan legislation that would address scheduled changes in business taxation under the “Tax Cuts and Jobs Act,” among other provisions. In particular, the bill includes proposed changes to section 174, section 280C, and proposed temporary section 174A.
It remains uncertain whether the bill will be passed by the Senate where opposition has arisen and 60 votes are needed for passage. The Senate is scheduled for recess from February 10 – 25 and is not expected to consider the bill until after it returns at the earliest. Any amendments to the bill, either in committee or on the floor, could complicate final passage and would, at least, require re-passage by the House.
Read a February 2024 report [PDF 225 KB] prepared by KPMG LLP that discusses the proposed changes to section 174, section 280C, and proposed temporary section 174A, and addresses common questions taxpayers have regarding the proposed changes to those provisions.