There is pending federal legislation under the Tax Relief for American Families and Workers Act that would allow 100% bonus depreciation retroactive back to 2023 on eligible capital asset purchases which is currently at 80% bonus depreciation under the current tax laws. This proposed legislation has passed through the Ways and Means Committee and it’s appearing it will pass the House vote soon. However, it may take until March for the Senate to vote. There are some other proposals like increased child tax credits, changes in the R & D credits, and changing of the 163(j)-interest expense limitation with this Act. Some of these changes will be automatically updated on your tax returns if passed, like the child tax credit, but the majority it all depends on if the pending tax legislation if approved is utilized by the taxpayer.

We encourage you to discuss with your tax preparer. Our client managers will be contacting clients whom they believe may be impacted by this legislation in the near future.

Please see the article HERE for more information