KPMG report: Implications of proposed changes to sections 174 and 280C in bipartisan tax extenders legislation
Common questions taxpayers have regarding the proposed changes
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.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.