Potential 2024 Business Tax Cuts
The above continuing resolution (CR) is not expected to contain a proposed tax cut agreement that was in the works between Republicans and Democrats. Last week, Democratic Sen. Wyden (OR) and Rep. Smith (R-MO), chairmen of the Senate and House Tax Committees, presented an outline of their roughly $70 billion tax cut proposal for 2024, evenly split between corporate tax cuts and child tax credit. The proposed 2024 tax deal would revive tax breaks for research and development spending, increase the deductibility of investment, such as in equipment, and a tax break for the interest incurred on select business loans. The proposed 2024 tax breaks would be extended through 2025, leaving them to expire at the same time as dozens of other tax cuts. House Ways and Means Chair Smith and Senate Finance Chair Wyden are still working out the logistics of passing a potential deal in hopes of passing a tax package by January 29th, to avoid disrupting filing season.