With NAHB’s Strong Backing, House Passes Tax Bill

Regulations
Published

On a solid bipartisan vote of 357 to 70, the House approved the American Families and Workers Act of 2024, legislation that would expand the federal child tax credit and enact a number of other business-related provisions.

NAHB strongly supports the roughly $80 billion tax package, which contains a number of provisions of interest to the housing and business community. Specifically, the bill would:

  • Strengthen the Low-Income Housing Tax Credit (LIHTC). LIHTC helps finance the construction and preservation of affordable rental housing. This bill would temporarily increase the amount of credits allocated to states by 12.5% for calendar years 2023 through 2025. The measure also provides more flexibility when using bonds to finance a LIHTC project.
  • Extend the 100% Bonus Depreciation. Businesses were permitted to claim 100% bonus depreciation in 2022 for qualifying assets placed in service in 2022. The rate decreased to 80% in 2023, and was set to drop to 60% in 2024, 40% in 2025, 20% in 2026, and zero in 2027. The legislation would allow businesses to claim 100% bonus depreciation for investments in machines, equipment and vehicles for tax years 2023, 2024 and 2025, providing a retroactive tax benefit for 2023.
  • Expand Section 179 Expensing. The provision increases the maximum amount a taxpayer may expense to $1.29 million, reduced by the amount by which the cost of qualifying property exceeds $3.22 million. The $1.29 million and $3.22 million amounts are adjusted for inflation for taxable years beginning after 2024.
  • Increase the Threshold for Information Reporting on Forms 1099-NEC and 1099-MISC. Under current law, the reporting threshold for payments by a business for services performed by an independent contractor or subcontractor and for certain other payments is generally $600. The legislation would increase the threshold to $1,000 and adjusts it for inflation after 2024.

The legislation is paid for, at least in part, by accelerating the deadline for filing backdated claims under the Covid-era Employee Retention Tax Credit (ERC), as well as increasing penalties on entities promoting fraudulent ERC claims and granting the IRS additional time to scrutinize ERC claims.

The strong House vote provides much-needed momentum as the bill moves to the Senate. While NAHB will be urging Senate lawmakers to move quickly to pass this legislation — and there is a sense of urgency to act fast as the tax filing season is just getting underway — the ultimate fate of the bill remains uncertain.

Some senators have expressed concerns with certain provisions in the legislation, and it is unclear if, and when, the upper chamber will vote on the bill.

View more details on the tax package.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Spring Leadership Meeting

Apr 25, 2025

Virtual Subcommittee Schedule Available for 2025 Spring Leadership Meeting

NAHB’s Spring Leadership Meeting will be held in person from June 10-13 in Washington, D.C. Prior to this year’s meeting, subcommittee meetings will be held virtually beginning the week of May 5.

IBS

Apr 25, 2025

Builder of IBS 2025 Show Home to Share Insights in Live Webinar

Dan Coletti, owner of Sun West Custom Homes and the designer of the 2025 show home, will delve deeper into the design concepts and innovative techniques that defined The New American Home 2025.

View all

Latest Economic News

Economics

Apr 23, 2025

New Home Sales Rise in March

A modest decline in mortgage rates and lean existing inventory helped boost new home sales in March even as builders and consumers contend with uncertain market conditions.

Economics

Apr 22, 2025

The Power of Women in the Workforce

Over the past 125 years, women have played a crucial and multifaceted role in the labor force. Increasing women’s participation in the workforce is not only essential for individual and family well-being, but also contributes significantly to overall labor force participation rates and economic growth by adding more workers and enhancing overall productivity.

Economics

Apr 21, 2025

Who Influences the Purchasing of Building Products?

In a previous post, NAHB analyzed where builders and remodelers purchased products, regardless of who ultimately purchases them (themselves or subcontractors). In this post, the question shifts to who is most often responsible for the choice of particular products.