On 31 January 2024, the US House of Representatives passed the Tax Relief for American Families and Workers Act of 2024 (Bill H.R. 7024).  The main tax provisions for companies are:

  • The deduction for domestic research and experimental expenditures made after 31 December 2021 and before 1 January 2026 will be reinstated. The deductions will be for the whole current year instead of spreading them in five years.
  • The allowance for depreciation, amortization, or depletion to determine the interest limitation on businesses has been extended until 1 January 2026. This extension generally applies to taxable years starting after 31 December 2023. The adjusted taxable income for determining the interest limitation is calculated by deducting depreciation, amortization, or depletion for tax years beginning after 2021.
  • The 100% additional first-year depreciation deduction for qualified depreciable assets through 2025 has been extended. This extension is applicable until 2026 for specific properties with extended production periods. The bonus depreciation will be gradually phased out over five years starting from 2023.
  • The immediate expensing of depreciable business assets will go through limitations increases. The base limit will be adjusted from USD 1 million to USD 1.29 million for taxable years starting after 31 January 2023, which currently stands at USD 1.22 million in 2024.  The base property value limit will be increased from USD 2.5 million to USD 3.22 million.