On 25 January 2024, the U.S. Congressional Budget Office (CBO) released its cost estimate report concerning the Tax Relief for American Families and Workers Act of 2024 (Bill H.R. 7024).
The main measures of the bill are as follows:
The bill would:
- Increase refunds under, expand eligibility for, and adjust the child tax credit to account for inflation for tax years 2023 through 2025
- Allow businesses to deduct expenses for domestic research and experimentation and to depreciate certain equipment more quickly than under current law
- Increase the amount of interest that businesses can deduct as an expense
- Increase the threshold for businesses to report certain payments to contractors and subcontractors
- Stop claims of the employee retention tax credit and increase penalties for promoters’ violations
Estimated budgetary effects would mainly stem from the following:
- Increased outlays for the refundable portion of the child tax credit
- Reduced revenues attributable to extending tax deductions for business expenses
- Lower outlays and increased revenues from the prevention of future claims of the employee retention tax credit
