A bill that would provide tax relief for workers, families, and small businesses has received support from the Automotive Service Association (ASA) in a recent press release.
H.R. 7024 was introduced by U.S. House Ways and Means Committee Chairman Jason Smith (R-MO) and U.S. Senate Finance Committee Chairman Ron Wyden (D-OR). It recently passed the full house with 357 in favor and 70 against.
ASA has applauded the move, citing ways that the bill could potentially help those within the auto industry, such as reclassifying interest paid on certain business loans as allowable deductions; allowing for a 100% bonus depreciation allowance for qualified property acquired and utilized between Dec. 31, 2022, and Jan. 1, 2026.
The bill would raise the maximum amount a business may expense for qualifying property, increasing from $1 million to $1.29 million, with adjustments being made for inflation for taxable years after 2024.
In addition, ASA recognizes the benefit many will receive through an expansion made to the Child Tax Credit, which would take into account the number of children in a household when calculating the maximum refundable credit, and increasing the maximum per-child limit from $1,600 to $1,800 for tax year 2023, with annual increases implemented to adjust for inflation each year through 2025.
“Advancing the Tax Relief for American Families and Workers Act closer to enactment is a huge win for independent automotive repairers,” stated ASA’s Washington, DC Representative Bob Redding. “The U.S. House of Representatives sent a strong message, through yesterday’s vote, that small businesses–like those represented by ASA–deserve a chance to thrive.”
