WASHINGTON (Aug. 2, 2024) – American Hotel & Lodging Association (AHLA) Interim President & CEO Kevin Carey issued the following statement today after the Senate failed to advance the Tax Relief for American Families and Workers Act, H.R. 7024.
“We’re disappointed the Senate failed to advance this bipartisan bill, which would provide critical tax relief for hoteliers who are still struggling to deal with a nationwide workforce shortage, multiple harmful new federal regulations, and the lingering effects of inflation,” said AHLA Interim President & CEO Kevin Carey. “AHLA is grateful to Rep. Jason Smith and Sen. Ron Wyden for their leadership on this issue, and we look forward to continuing to work with Congress to extend these vitally important tax policies.”
Background
The bipartisan Tax Relief for American Families and Workers Act (H.R. 7024) includes important provisions that will benefit hoteliers and hotel employees, including:
- An extension of the 100% bonus depreciation through the end of 2025. Under current law, leasehold and other qualifying interior improvements are eligible for bonus depreciation. In 2026, bonus depreciation would fall to 20% and expire after 2026.
- A retroactive, four-year extension of the taxpayer-favorable earnings before interest, taxes, depreciation, and amortization (EBITDA) standard for measuring the amount of business interest deductible under section 163(j).
- A Child Tax Credit enhancement.
The U.S. House of Representatives passed the bill in January in a bipartisan vote.
