The US House of Representatives overwhelmingly passed a $78,000,000,000 "extenders bill" this week. The team at Grant Thornton has an in-depth article with insights and analysis available HERE. Some of the key points referenced in the article are:
(The information below is attributed 100% to Grant Thronton, pulled from the article reference above.)
It trades $33 billion in child tax credit enhancements for three key business provisions that would:
- Restore expensing of domestic research and experimentation (R&E) costs retroactive to 2022 and extend the treatment through 2025, while retaining the 15-year amortization period for foreign R&E
- Reinstate the previous calculation of adjusted taxable income (ATI) for the limit on the interest deduction under Section 163(j), which would be effective through 2025 and retroactive to 2022 at the taxpayer’s election
- Restore 100% bonus depreciation for property placed in service from 2023 through 2025
The legislation also includes a handful of other largely bipartisan priorities, including:
Barring employee retention credit (ERC) claims after Jan. 31, 2024
Conferring tax treaty-like benefits to Taiwan
Increasing the information return threshold for Forms 1099-MISC and 1099-NEC from $600 to $1,000
Increasing the Section 179 expensing thresholds
Providing disaster relief
Increasing and enhancing the low-income housing tax credit