House Ways and Means Committee to Markup Tax Package Extending Expiring Business Tax Deductions, Stimulating Affordable Housing, And Curtailing COVID-Era Employee Retention Tax Credit
The House Ways and Means Committee announced it will markup the Tax Relief for American Families and Workers Act of 2024 tomorrow, January 19, 2024 at 9am ET. Among other things, this legislation 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. 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 markup comes as the Editorial Board of the Wall Street Journal came out strongly in opposition to the deal in an editorial on Wednesday.
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