Nonprofits and The Tax Relief for American Families and Workers Act of 2024
The Tax Relief for American Families and Workers Act of 2024, proposed legislation passed by the House of Representatives on January 31, 2024, is now in the hands of the Senate.
This $79 billion bipartisan tax legislation is thought to be significant to the business community and to families with children. Business tax incentives include retroactive tax deductions for research and experimental expenditures for tax years 2022 and through 2025.
Although there is not much in the Act that directly affects nonprofit organizations, it does increase the child tax credit for certain individuals for tax years 2023 through 2025. It also raises the threshold for 1099 reporting from $600 to $1,000 and provides for the early termination of the employee retention credit opportunity on January 31, 2024.
The House of Representatives passed the Tax Relief for American Families and Workers Act with a vote of 357-70, but the ultimate fate of the Act remains uncertain.
Read CLA’s tax article on the proposed legislation for more information.
Comments are closed.