An NSBA Priority Issue, small business commends Senate supporters of a path forward for this important tax bill.
UPDATE | After we alerted our community that Senate leadership was going to try to bring H.R.7024, the Tax Relief for American Families and Workers Act of 2024 to the floor for a vote, 5 months after it was passed in the House by a broad bipartisan majority. This bill contains a provision that would restore the Sec. 174 R&D tax deduction that would provide much-needed tax relief to high-tech small businesses. In order to get an up-and-down vote, the Senate requires a vote on cloture to end debate, which requires 60 votes if any Senator objects.
Unfortunately, the procedural vote on cloture was defeated this afternoon by a vote of 48-44. largely along party lines, with three Republicans voting "Aye", and 2 Democrats voting "Nay." While the Sec. 174 R&D provision enjoy bipartisan support, the Senate Republicans have raised objections to certain aspects of the Child Tax Care portion of the bill. The Senate will now go on recess until after Labor Day. SBTC will continue to push the Senate to pass a fix to the Sec. 174 R&D Tax deduction, and we will keep you up to date with any changes or developments.
*This update is from NSBA's Small Business Technology Council. Learn more about SBTC.
In February, bipartisan cooperation in the House helped pass The Tax Relief for American Families and Workers Act, including several key priorities which NSBA has fought for, like allowing Section 174 (R&D) expenses to be retroactively deductible beginning with tax year 2022 rather than amortized over a five-year span.
Since then, the $78 billion Tax Relief bill has remained stalled in the Senate; however, this week, after months of NSBA member engagement on the importance of this Act, the Senate is beginning its procedures to allow consideration of the legislation.
Senate Finance Chair Ron Wyden (D-Ore.), alongside House Ways and Means Chair Jason Smith (R-Mo.), are leading the revived efforts to move the bicameral legislation.
Unfortunately, outlook of passage in the Senate remains unclear, with a cursory vote count showing a majority of Senators still opposing the bill in its entirety.
RELATED | NSBA PRIORITY ISSUES THROUGH 2024
For the small-business opportunities the bipartisan bill provides to increase jobs, safely participate in the Small Business Innovation Research program, and afford the investment needed to succeed, NSBA continues to support the Tax Relief Act.
Follow NSBA as we continue working with Congress to ensure common sense small-business tax policies, and share your story on how these policies affect your small business with our Voter Voice tool here.
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