Tractors in Dealer Parking Lot for SaleLast Thursday, the U.S. Senate voted 48 to 44 to reject the Tax Relief for American Families and Workers Act. This $79 billion tax package would have provided larger deductions on equipment and building purchases at year-end.

In January, the House overwhelmingly passed the bill, which includes a mix of business tax credits. It would have reestablished 100% bonus depreciation for certain properties. This includes 20-year buildings. The legislation would have also increased Section 179 education levels. The bonus depreciation for the 2024 tax year is now set at 60% of the property value.

A significant bill component was an increase in the maximum refundable child tax credit. Many tax credits will begin to phase out after 2025 if another tax package is not passed by the end of next year.

Read more on the Tax Relief for American Families and Workers Act here.