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    United States – House Passes Tax Extenders Legislation

    GMS Flash Alert 2024-032 | February 1, 2024

    On January 31, 2024, the U.S. House of Representatives passed the “Tax Relief for American Families and Workers Act of 2024” (the “Act”).1  As reported in GMS Flash Alert 2024-019 (19 January 2024), the proposed Act would address scheduled changes for business income tax provisions and includes amendments to certain individual income tax provisions. 

    WHY THIS MATTERS

    The proposed changes or extensions to individual income tax provisions include enhancements of certain tax provisions, such as the child tax credit, and the U.S.-Taiwan double tax relief,2 that may have an effect on international assignments. 

    Provisions

    As discussed in GMS Flash Alert 2024-019, the following provisions included in the Act may impact global mobility programs and their assignees:

    • Amendments to the child tax credit including the per-child calculation of the additional child tax credit, an increase in the maximum amount of the additional child tax credit, and inflation adjustments provisions;
    • United States-Taiwan Expedited Double-Tax Relief Act addressing the double tax of American and Taiwanese tax residents;
    • Extension of the 100-percent bonus depreciation;
    • Assistance for disaster-impacted communities; and
    • Other provisions of potential interest to individuals and employers including provisions relating to depreciation, research and development, and Form 1099 reporting.   

    Please refer to GMS Flash Alert 2024-019 for a summary of the above-selected provisions.  For a comprehensive and detailed discussion of all the provisions included in the Act, please refer to the linked Joint Committee on Taxation description. 

    Next Steps

    The bill moves to the Senate where the proposed legislation may be amended. 

    KPMG INSIGHTS

    It is unclear whether the Act will be passed by the Senate and signed into law by President Biden.  The Senate may take up the bill next week.  If not, the Senate is scheduled for recess from February 10 – 25 and would not be expected to consider the bill until after they return.  

    Additional resources

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    Footnotes

    1  Read text of the bill, H.R. 7024.

    2  See GMS Flash Alert 2023-230 (December 1, 2023) and GMS Flash Alert 2023-183 (September 21, 2023) for coverage.

    See “House passes bipartisan tax extenders legislation,” in TaxNewsFlash (January 31, 2024), a publication of KPMG LLP in the United States, by clicking here.

    The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.

    Disclaimer

    The information contained in this newsletter was submitted by the KPMG International member firm in United States.

    GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. 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.

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