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The Tax Relief for American Families and Works Act; What You Need to Know



Salt Lake City, Utah

The Tax Relief for American Families and Works Act of 2024 is a groundbreaking tax proposal aimed at providing much-needed relief to American families and workers. This comprehensive legislation includes a range of provisions designed to stimulate economic growth, support middle-class Americans, and simplify the tax code. In this blog, we will explore tax planning advice for the key provisions of the Act, with a specific focus on the impact on 100% bonus depreciation, child tax credits, and retirement savings contributions.Key Provisions of the Tax Relief for American Families and Works Act of 2024:1. Expansion of Child Tax Credit: The Act proposes a significant expansion of the Child Tax Credit.

The proposed calculation of the refundable amount will be determined on a per-child basis, meaning that once the earned income amount in excess of $2,500 is multiplied by 15%, that amount is then multiplied by the total number of children, resulting in the total refundable amount. This change would apply to the 2023, 2024, and 2025 tax years.

The maximum amount of the refundable credit will then be increased for three tax years. It will no longer rely on inflation adjusted amounts. These amounts will be $1,800 for 2023, $1,900 for 2024, and $2,000 for 2025.

2. Middle-Class Tax Relief: The legislation includes adjustments to tax brackets and deductions to provide tax relief to middle-class Americans.

3. Small Business Incentives: The Act offers incentives for small businesses, including 100% bonus depreciation on qualifying property purchases. This provision allows businesses to deduct the full cost of eligible property in the year it is placed in service, providing a significant tax benefit and encouraging investment in equipment and machinery.4. Increased Section 179 Deduction: The act raises the deduction limit for qualifying property, providing businesses with greater flexibility in deducting investment costs.5. Infrastructure Investment Tax Incentives: The Act provides tax incentives for investments in infrastructure projects. This incentive is designed to stimulate economic development, create jobs, and improve the country’s infrastructure.Impact on 100% Bonus Depreciation and Specific Numbers for Credit Amounts and Contribution Limits:The inclusion of 100% bonus depreciation in the Tax Relief for American Families and Works Act of 2024 is a significant boon for businesses looking to invest in equipment and machinery. Under this provision, businesses can deduct the full cost of eligible property in the year it is placed in service, providing immediate tax savings and encouraging capital investment.Specifically, the Act allows for a 100% bonus depreciation on qualifying property purchases, such as machinery, equipment, and certain improvements to non-residential real property. This provision can result in substantial tax savings for businesses, allowing them to reinvest in their operations and fuel economic growth.The Tax Relief for American Families and Works Act of 2024 represents a significant step towards providing relief to American families and workers through a range of tax reforms and incentives. With its focus on expanding child tax credits, providing middle-class tax relief, offering incentives for small businesses, enhancing retirement savings options, and promoting infrastructure investments, this proposed legislation has the potential to make a positive impact on taxpayers and the economy as a whole. By understanding the specific provisions, including 100% bonus depreciation and specific numbers for credit amounts and contribution limits, taxpayers can better prepare for potential changes in the tax landscape and take advantage of the benefits offered by the Act.



This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

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