{"id":13617,"date":"2024-08-12T21:59:24","date_gmt":"2024-08-12T21:59:24","guid":{"rendered":"https:\/\/taxops.com\/?p=13617"},"modified":"2024-08-14T16:30:29","modified_gmt":"2024-08-14T16:30:29","slug":"failed-tax-relief-how-h-r-7024s-defeat-affects-section-174","status":"publish","type":"post","link":"https:\/\/taxops.com\/failed-tax-relief-how-h-r-7024s-defeat-affects-section-174\/","title":{"rendered":"Failed Tax Relief: How H.R. 7024\u2019s Defeat Affects Section 174"},"content":{"rendered":"\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/08\/Failed-Tax-Relief-How-H.R.-7024s-Defeat-Affects-Section-174-1024x536.png\" alt=\"\" class=\"wp-image-13620 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/08\/Failed-Tax-Relief-How-H.R.-7024s-Defeat-Affects-Section-174-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/08\/Failed-Tax-Relief-How-H.R.-7024s-Defeat-Affects-Section-174-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/08\/Failed-Tax-Relief-How-H.R.-7024s-Defeat-Affects-Section-174-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><noscript><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/08\/Failed-Tax-Relief-How-H.R.-7024s-Defeat-Affects-Section-174-1024x536.png\" alt=\"\" class=\"wp-image-13620 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/08\/Failed-Tax-Relief-How-H.R.-7024s-Defeat-Affects-Section-174-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/08\/Failed-Tax-Relief-How-H.R.-7024s-Defeat-Affects-Section-174-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/08\/Failed-Tax-Relief-How-H.R.-7024s-Defeat-Affects-Section-174-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/noscript><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>The recent Senate decision to block the Tax Relief for American Families and Workers Act (H.R. 7024) means our hopes for a reprieve on Section 174 expensing related to U.S. R&amp;D credits are dashed for now. <\/em><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">By <a href=\"https:\/\/taxops.com\/jamie-overberg\/\" target=\"_blank\" rel=\"noopener\" title=\"Jamie Overberg\">Jamie Overberg<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The U.S. Senate recently blocked the House-passed Tax Relief for American Families and Workers Act (H.R. 7024). This setback also extinguishes our hopes for a reprieve from the elective Section 174 expensing provisions related to U.S. R&amp;D credits before this year&#8217;s tax filing deadline. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bill included a critical provision allowing taxpayers to deduct Section 174 expenses rather than capitalizing them under current law. Despite broad bipartisan support for this change, opposition to other aspects of the bill\u2014such as the expansion of childcare benefits\u2014ultimately derailed efforts to secure a more favorable tax treatment for Section 174 in 2024.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Takeaway<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With the presidential election on the horizon, partisan maneuvering in Congress may have played a role in the bill\u2019s defeat. As Congress reconvenes in January 2025, we hope that legislators will reconsider this legislation during the lame-duck session, a time when unexpected progress can sometimes be made. In the meantime, continue to advocate for tax relief related to Section 174. Persistent engagement and pressure on lawmakers are crucial for reigniting discussions and advancing taxpayer relief on this important issue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Read More on Research Credits&nbsp; &nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxops.com\/research-credit-form-6765-irs-new-revised-draft\/\" target=\"_blank\" rel=\"noreferrer noopener\">Research Credit Form 6765: IRS New Revised Draft (background)<\/a>&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxops.com\/what-is-rd\/\" target=\"_blank\" rel=\"noreferrer noopener\">What are R&amp;D credits?<\/a>&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxops.com\/eligible-for-lucrative-rd-credits-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Eligible for Lucrative R&amp;D credits?<\/a>&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxops.com\/faqs-getting-started-with-research-credits\/\" target=\"_blank\" rel=\"noreferrer noopener\">FAQs: Getting Started with Research Credits<\/a>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Wondering if you Qualify for R&amp;D Credits? Contact Us<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Dig into R&amp;D with Instant Downloads<\/h3>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/wp-content\/uploads\/2021\/08\/Pay-less-Invest-more.-2020.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Pay Less Tax, Invest More with R&amp;D Credits<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:37px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/wp-content\/uploads\/2021\/02\/Game-changer-puts-RD-credits-within-reach.2021.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Game-changer Puts R&amp;D Credits within Reach<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">More Tax News<\/h3>\n\n\n<ul class=\"wp-block-latest-posts__list wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/auditor-independence-in-the-age-of-private-equity\/\">Auditor Independence in the Age of Private Equity: What CFOs Need to Know<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/r-d-credits-for-software-companies\/\">R&amp;D Credits for Software Companies: Scrum Teams, Qualifiers, and Section 174 After OBBBA<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/section-174-decoupling-what-tax-pros-need-to-know-state-by-state\/\">Section 174 Decoupling: What Tax Pros Need To Know State By State<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/sean-espy-new-partner\/\">TaxOps Welcomes Sean Espy as Partner, Tax Minimization<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/state-nexus-demystified-navigating-tax-compliance-after-wayfair-episode-1-2\/\">Your Tax Footprint Is Probably Bigger Than You Think: What Finance Leaders Need to Know About State Nexus<\/a><\/li>\n<\/ul>\n\n\n<div style=\"height:59px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/#subscribe\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe to Tax News<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The defeat of the Tax Relief for American Families and Workers Act (H.R. 7024) means our hopes for a reprieve on Section 174 expensing related to U.S. R&#038;D investments are dashed, for now.<\/p>\n","protected":false},"author":3,"featured_media":13620,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"<!-- wp:spacer {\"height\":27} -->\r\n<div class=\"wp-block-spacer\" style=\"height: 27px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n<!-- \/wp:spacer --><!-- wp:paragraph -->\r\n<p><em>Any company that develops new or improved products, processes, or software\u2014in some cases, whether profitable or not\u2014may qualify for these lucrative credits.<\/em> <em>Wondering if you are eligible to take advantage of lucrative research credits that could cut your federal and state tax liability?\u00a0Find out here!<\/em><\/p>\r\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\r\n<p>When it comes to research and development tax credits, certain costs related to wages, supplies and contract research are eligible. Often, though, taxpayers \u2014 and more specifically, the engineers doing the work \u2014 overlook various processes and routine work that can be tapped for extra tax savings.<\/p>\r\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\r\n<p>R&amp;D credits aren\u2019t limited to what\u2019s never been done before. Yet, each year, corporations and pass-throughs across industries fail to claim R&amp;D tax credits because they aren\u2019t aware of how few eligible employees are necessary to claim the credits or the many day-to-day activities that qualify for dollar-for-dollar reductions in income tax liability.<\/p>\r\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\r\n<p>Check the chart below to determine whether you are eligible for R&amp;D credits. TaxOps Minimization puts R&amp;D credits within reach.<\/p>\r\n<!-- \/wp:paragraph --><!-- wp:spacer {\"height\":40} -->\r\n<div class=\"wp-block-spacer\" style=\"height: 40px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n<!-- \/wp:spacer --><!-- wp:buttons -->\r\n<div class=\"wp-block-buttons\"><!-- wp:button -->\r\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/taxops.com\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Qualified? Contact Us<\/a><\/div>\r\n<!-- \/wp:button --><\/div>\r\n<!-- \/wp:buttons --><!-- wp:spacer {\"height\":40} -->\r\n<div class=\"wp-block-spacer\" style=\"height: 40px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n<!-- \/wp:spacer --><!-- wp:image {\"align\":\"center\",\"id\":8679,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter size-full\"><img class=\"wp-image-8679\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2021\/08\/TaxOps-Min-RD-Eligibility-3.png\" alt=\"\" \/><\/figure>\r\n<\/div>\r\n<!-- \/wp:image --><!-- wp:spacer {\"height\":37} -->\r\n<div class=\"wp-block-spacer\" style=\"height: 37px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n<!-- \/wp:spacer --><!-- wp:heading {\"level\":3} -->\r\n<h3>Dig into R&amp;D with Instant Downloads<\/h3>\r\n<!-- \/wp:heading --><!-- wp:spacer {\"height\":60} -->\r\n<div class=\"wp-block-spacer\" style=\"height: 60px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n<!-- \/wp:spacer --><!-- wp:buttons -->\r\n<div class=\"wp-block-buttons\"><!-- wp:button -->\r\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/taxops.com\/wp-content\/uploads\/2021\/08\/Pay-less-Invest-more.-2020.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Pay Less Tax, Invest More with R&amp;D Credits<\/strong><\/a><\/div>\r\n<!-- \/wp:button --><\/div>\r\n<!-- \/wp:buttons --><!-- wp:buttons -->\r\n<div class=\"wp-block-buttons\"><!-- wp:button -->\r\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/taxops.com\/wp-content\/uploads\/2021\/02\/Game-changer-puts-RD-credits-within-reach.2021.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Game-changer Puts R&amp;D Credits within Reach<\/strong><\/a><\/div>\r\n<!-- \/wp:button --><\/div>\r\n<!-- \/wp:buttons --><!-- wp:spacer {\"height\":60} -->\r\n<div class=\"wp-block-spacer\" style=\"height: 60px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n<!-- \/wp:spacer --><!-- wp:heading {\"level\":3} -->\r\n<h3>More Tax News<\/h3>\r\n<!-- \/wp:heading --><!-- wp:latest-posts \/--><!-- wp:spacer {\"height\":59} -->\r\n<div class=\"wp-block-spacer\" style=\"height: 59px;\" aria-hidden=\"true\">\u00a0<\/div>\r\n<!-- \/wp:spacer --><!-- wp:buttons -->\r\n<div class=\"wp-block-buttons\"><!-- wp:button -->\r\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/taxops.com\/contact\/#subscribe\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe to Tax News<\/a><\/div>\r\n<!-- \/wp:button --><\/div>\r\n<!-- \/wp:buttons -->","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[382,78,226],"tags":[388,133,778,126,449,777,780,562,779,350],"class_list":["post-13617","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-main-tax-min","category-tax-savings","category-tax-news","tag-accounting-professionals","tag-accounting-today","tag-capitalization","tag-cpa","tag-engineers","tag-rd-credits","tag-research-costs","tag-research-credits","tag-research-expense","tag-taxops-minimization"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2024\/08\/Failed-Tax-Relief-How-H.R.-7024s-Defeat-Affects-Section-174.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/13617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=13617"}],"version-history":[{"count":4,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/13617\/revisions"}],"predecessor-version":[{"id":13625,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/13617\/revisions\/13625"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/13620"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=13617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=13617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=13617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}