The House Ways and Means Committee took a step toward easing the tax burden on businesses and families by advancing the Tax Relief for American Families and Workers Act with a bipartisan vote on Monday, January 19. FEDA members are encouraged to voice their support for the bill by completing this short email form from the National Restaurant Association.
The bill includes several measures aimed at providing tax relief for businesses such as FEDA members. Those provisions include:
- Research and development expensing: allowing businesses of all sizes to immediately deduct the cost of their U.S.-based R&D investments
- Interest deductibility: granting flexibility to businesses forced to borrow at higher interest rates
- 100 percent expensing: restoring full and immediate expensing for investments in equipment, machines and vehicles
- Small business expensing cap expansion: increasing the amount of investment a small business can immediately write off to $1.29 million, an increase from $1 million.
The National Restaurant Association noted that the bill would help restaurants lower their tax burden when investing in building upgrades, dining room remodels, expansions and refurbishments. Additionally, it would accelerate “bonus depreciation” for the immediate expensing of investments, providing small businesses with more cash on hand.