The House-passed tax bill, H.R.7024, remains stalled in the Senate. However, its chief Senate sponsor, Sen. Ron Wyden (D-OR), says the bill is not dead. Sen. Wyden says he continues to work with Senate leadership to schedule Senate floor time on the bill.

H.R.7024 would, among other things, enhance depreciation for business investments in equipment (including computer software), increase the deductibility of business interest, and retroactively cut off new claims for the now-expired employee retention tax credit (ERTC).

H.R.7024 is a bipartisan bill that passed the House overwhelmingly on January 31 by a 357 to 70 vote.

Senate-side, there is concern among key Republicans that the bill’s expansion of the child tax credit is too generous. There is also political concern about providing what would be perceived as a “win” for Democrats ahead of an election that will determine partisan control of both the House and Senate, as well as the Presidency in November.

Prospects: With key Republicans—including the ranking member of the Finance Committee, supported by the Senate Republican Leader—holding up the bill until/unless certain changes to it are made, there has been little to no progress on it in months. Supporters say its provisions will become part of the massive 2025 tax bill if the bill is not enacted this year, but there continues to be a strong push to get the bill across the finish line before the end of 2024. Prospects at this point appear grim, though. The political opposition only strengthens as the November elections draw closer.

 NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.