ABMA Priority Spotlight: The Tax Relief for American Families and Workers Act

Support

ABMA strongly supports H.R. 7024, the Tax Relief for American Families and Workers Act, which recently passed the House with bipartisan approval (357-70). This legislation is crucial for the lumber and building materials (LBM) industry as it seeks to retroactively extend key tax benefits that promote business growth and economic stability. Although the bill faces challenges in the Senate, ABMA is committed to advocating for its passage, making it a focal point for ABMA Advocacy Day. We will be thanking House members for advancing this bill and urging Senators to push it forward to the President’s desk.

How This Legislation Will Help

The Tax Relief for American Families and Workers Act builds on the Tax Cuts and Jobs Act (TCJA) of 2017, aiming to continue policies that simplify the tax system and stimulate economic growth. Key provisions of this legislation include:

Extension of Bonus Depreciation (Section 203): This allows businesses to immediately deduct the full cost of property purchases, encouraging investment in equipment and facilities, which boosts efficiency and competitiveness.
Increase in Limitations on Expensing of Depreciable Business Assets (Section 204): By enabling businesses to deduct a larger portion of their property purchase costs upfront, this provision can lower taxable income, improve cash flow, and provide additional resources for expansion and improvement.
Deduction for Domestic Research and Experimental Expenditures (Section 201): This deduction supports research and development activities, potentially leading to new and improved products, building materials, or manufacturing processes that are highly relevant to the sector.
Extension of Allowance for Depreciation, Amortization, or Depletion in Determining the Limitation on Business Interest (Section 202): This extension offers relief to businesses with significant debt financing by reducing the tax burden on interest payments, freeing up capital for inventory investment, equipment upgrades, and other business needs.

ABMA encourages its members to support this vital legislation. For a detailed overview, download our comprehensive H.R. 7024 guide and visit our 2024 priority legislation page to learn more about all of ABMA’s goals for 2024.