Act Now: Tell Your U.S. Representative to Support Pro-Business Tax Legislation
DON’T DELAY! Please contact lawmakers to request their support for this bill:
Overview: The U.S. House of Representatives is expected to vote next week on H.R. 7024, the Tax Relief for American Families and Workers Act of 2024. We need your help now to ensure that your U.S. Representative knows how important this legislation is to specialty automotive aftermarket businesses.
The House Ways and Means Committee recently passed the bipartisan Tax Relief for American Families and Workers Act of 2024, which allows for immediate expensing of research and development (R&D) and investments in equipment, increases the small business expensing cap by nearly 30%, and reduces reporting for small businesses using subcontractors. The legislation now awaits consideration on the floor of the U.S. House of Representatives.
SEMA members can benefit from key parts of the legislation:
• Research and development (R&D) expensing: Businesses of all sizes can immediately deduct the cost of their U.S.-based R&D investments instead of over five years, encouraging American innovation and improving our competitive position versus China and the rest of the world.
• Interest deductibility: Continued flexibility for businesses forced to borrow at higher interest rates to meet their payroll obligations and expand their operations.
• 100% expensing: Restore full and immediate expensing for investments in machines, equipment, and vehicles.
• Expand small business expensing cap: Increase the amount of investment that a small business can immediately write off to $1.29 million, an increase above the $1 million cap enacted in 2017.
• Cut red tape for small businesses: Adjust the reporting threshold for businesses that use subcontract labor from $600 to $1,000 and index for inflation, the first update to the threshold since the 1950s.