The Tax Relief for American Families and Workers Act of 2024 - 100% bonus depreciatn

[Lynn Gadd]

did i read that right?  if it passes depreciation will be until 2025?

https://taxfoundation.org/blog/bipartisan-tax-deal-2024-tax-...

The Tax Relief for American Families and Workers Act of 2024 contains the following major provisions:

Temporary R&D Expensing.

The bill would temporarily restore full expensing for domestic R&D. Since the start of 2022, companies have been required to spread deductions for investments in domestic R&D out over five years (15 years for foreign-sited R&D). This policy is known as R&D amortization and was put in place by the 2017 Tax Cuts and Jobs Act (TCJA). The tax deal would return to R&D expensing for R&D occurring within the United States, applying retroactively for the 2022 and 2023 tax years and continuing until the end of 2025.

Temporary Full Expensing for Short-Lived Assets (100 Percent Bonus Depreciation).

The bill would temporarily restore 100 percent bonus depreciation for equipment and other short-lived capital assets. The TCJA allowed companies to fully deduct the cost of short-lived investments immediately, from the fourth quarter of 2017 until the end of 2022, after which it started to phase out by 20 percentage points per year: in 2023, companies were able to deduct 80 percent of their short-lived investment costs immediately; this year, companies will be able to deduct 60 percent immediately; and so on. The bill would restore 100 percent bonus depreciation retroactively for investments made since the end of 2022 and maintain 100 percent bonus depreciation until the end of 2025.