Congress is trying to pass some bipartisan tax deductions that are interesting. Includes ERC demise. Also includes new penalties for tax preparers who aren't doing DD on COVID claims!

https://fortune.com/2024/01/17/busin...ll-irs-season/

Item 1:
"Most notably, the bill would give companies of all sizes the ability to deduct research and development costs immediately rather than over the course of five years. It would also allow businesses to fully deduct the purchase of equipment, machinery and technology. The bill also provides more flexibility in determining how much borrowing can be deducted."

--> This means that if they take loans for the equipment, they can deduct the entire equipment up-front as opposed to waiting on depreciation, so buying equipment (for the lending community that means with loans) is more attractive <--

Item 2:
"Some lawmakers have insisted that any tax extensions be paid for so as not to add to projected deficits. The authors of the agreement attempt to do that by speeding up the demise of the employee retention tax credit. Under current law, businesses had until April 15 of next year to claim the credit. The bill would bar additional claims after Jan. 31 of this year. It also would increase penalties for tax preparers failing to undertake due diligence in submitting those COVID-19-related claims."