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The Impact of the H.R. 7024 Tax Relief Bill on American Businesses

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Experience a groundbreaking moment as the Senate embraces the future with the approval of H.R. 7024 – The Tax Relief for American Families and Workers Act of 2024. This tax relief bill is a visionary proposal aimed at catalyzing American innovation and fostering robust business growth.

Key Features

Transforming R&D Expenditures

The Act introduces a bold approach, allowing businesses of all sizes to instantly deduct the full cost of their domestic U.S. R&D expenditures. This departure from the conventional five-year amortization rule aims to motivate businesses to invest in innovative projects, fostering rapid economic growth.

Businesses now have the freedom to channel their creativity without the hindrance of extended amortization, promoting a nimble and efficient pursuit of pioneering ideas.

Extended Bonus Depreciation

The Act extends the advantages of 100% bonus depreciation, making it applicable retroactively until January 1, 2026. This extension serves as a beacon for businesses, encouraging them to maintain full deductibility for qualified property placed into service during the current tax year.

Originally slated for a phase-down in 2023, the bonus depreciation reduction now sees a delay, with the Act proposing a new start date of January 1, 2027. This extension ensures businesses, irrespective of size, can continue driving economic growth through capital improvements and real estate projects.

 

Navigating Change

The Act introduces a postponement in the implementation of the requirement to capitalize and amortize domestic U.S. R&D expenditures. This delay empowers taxpayers to instantly deduct qualifying expenditures incurred between December 31, 2021, and January 1, 2026, providing a crucial window for businesses to invest in their future.

Bonus Insight

For businesses and real estate investors looking to optimize bonus depreciation, consider a cost segregation study. This invaluable tool can identify “qualified property,” ensuring that your business maximizes the benefits available.

In essence, “The Tax Relief for American Families and Workers Act of 2024” is not just a proposal; it’s a catalyst for a new era of innovation, growth, and prosperity. Seize the opportunity to propel your business forward and be part of the transformative journey that lies ahead.

Cost Segregation Expert, Isaac Downing

Issac Downing
Senior Director of Tax Incentives

Tax industry expert, leading the expansion of Omega’s Credit & Incentives offerings, Downing has more than 15 years’ experience in cost segregation, playing every role from conducting engineer-driven studies to driving business growth. Downing holds a BS, Accounting & Finance, and with his extensive experience in public accounting and tax management, he has saved clients hundreds of millions of dollars in tax credits and incentives.