February 1, 2024

Last night, the House voted 357-70 to pass the “Tax Relief for American Families and Workers Act.” SWACCA has been engaged with the larger business community to lend our support for the provisions in the legislation that would: (1) restore full and immediate expensing for investments in machines, equipment, and vehicles; and (2) extend and increase for inflation the section 179 expensing of “qualifying property” (i.e., depreciable tangible personal property, off-the shelf computer software, and qualified real property) that is purchased for use in the active conduct of a trade or business.

Of interest to SWACCA members, to pay for these tax benefits, the bill is moving forward from April 15, 2025 to January 31, 2024 the deadline by which companies may file backdated claims under the COVID-era Employee Retention Tax Credit (ERTC) – a program that has come to be widely viewed as permeated with fraud and abuse. The legislation also seeks to dramatically increase the penalties associated with improper ERTC claims and extends to six years from the date of filing the statute of limitations for the government to pursue fraudulent ERTC claims.

The legislation now heads to the Senate, where it is expected to undergo changes before a vote in that chamber. Shortly after the bill was passed, Senate Finance Committee Ranking Member Mike Crapo (R-ID) said, “he looks forward to working with [his] colleagues to vet the legislation, address concerns, and make the necessary changes to build support.”

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