UPDATED 1.24.2024 – As an update to this recently posted article on the Tax Relief for American Families and Workers Act of 2024 bill, which notes an early end to Employee Retention Credit (ERC) claims on 1/31/2024, the deadline for passing this bill has now been extended until March. However, it is possible that the 1/31 deadline would be enforced retroactively. Therefore, it remains crucial for qualifying taxpayers to file their ERC applications as soon as possible. REDW is here to help with these claims and this deadline approaches.
On January 16, 2024, the House Ways and Means Committee released draft legislation called “The Tax Relief for American Families and Workers Act of 2024.” There are several taxpayer-friendly changes proposed, including restoration of immediate expensing for domestic research and development expenses for the R&D credit, increase to the child tax credit, extension of 100% bonus depreciation, and changes to the limitation on deductible business interest expense.
However, the way these changes would be paid for is by ending the Employee Retention Tax Credit submissions on January 31, 2024. Without this bill, ERC submissions for the 2020 and 2021 tax years would have still been allowed until April 15, 2024, and April 15, 2025, respectively.
While the passing of this bill remains uncertain, it does have bipartisan support and therefore its passage seems likely. REDW’s trusted tax advisors are standing by to help qualifying taxpayers submit their ERC claims before this potential deadline to take advantage of this legitimate credit.
Connect with our State and Local Tax Team today to get started.
