The House has passed the Tax Relief for American Families and Workers Act of 2024 bill. There are a number of parts to it, and nothing will happen until the Senate passes it, after which President Biden would have to sign it — or offer a veto that would then be overridden.
But if all that happens, the business tax relief section includes an extension to 2025 of 100% bonus depreciation. That "would temporarily restore 100 percent bonus depreciation for equipment and other short-lived capital assets," as the Tax Foundation noted.
As Thompson Reuters explains, "Bonus depreciation is a tax incentive designed to stimulate business investment by allowing companies to accelerate the depreciation of qualifying assets, such as equipment, rather than write them off over the useful life of the asset. This strategy can reduce a company's income tax, which in turn reduces its tax liability."
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