House Ways and Means Republicans have put forth a series of tax bills primarily focused on benefiting small businesses. The package includes an extension of expired business tax provisions, an additional standard deduction, and reductions in green energy provisions.
Introduced on June 9, these three interconnected tax bills are seen as a starting point for negotiations between Democrats and Republicans on a comprehensive tax bill expected to be finalized by the end of the year. The package aims to extend and retroactively reinstate three business tax provisions from the Tax Cuts and Jobs Act (TCJA) (PL 115-97). Additionally, it proposes a two-year bonus standard deduction for individuals, an increase in the reporting threshold for forms 1099 and 1099-K, and the elimination of certain clean energy credits introduced by the Inflation Reduction Act (PL 117-169).
The first bill (HR 3938), part of the American Families and Jobs Act package, temporarily revives tax breaks for research spending, interest expenses, and equipment purchases. These provisions expired last year as part of a planned phase-out of tax cuts under the TCJA, with the process accelerating in 2025.
The second bill (HR 3936) would allow taxpayers earning less than $400,000 per year to claim a larger standard deduction over the next two years. Married couples who do not itemize their deductions would see an increase of $4,000, while single filers would benefit from an additional $2,000.
The third bill (HR 3937) aims to restore the reporting threshold for Form 1099-K to $20,000.
This matter is still under development and will have to stay tune for any future updates.