The section provides an overview and breakdown of the “Tax Relief for American Families and Workers Act of 2024.” It includes details like the short title of the Act, references to amendments to the Internal Revenue Code of 1986, and a table of contents listing the various titles and sections of the Act covering topics like tax relief for families, promoting innovation and growth, enhancing global competitiveness, assisting disaster-impacted communities, making housing more affordable, and improving tax administration.

The section of the bill amends how the refundable portion of the child tax credit is calculated, capping it at $1,400 per qualifying child and adjusting the formula with special rules for the number of qualifying children. These changes apply to tax years starting after December 31, 2022.

In this section, the refundable portion of a tax credit is increased for certain years. Specifically, the amount changes from $1,400 to $1,800 for 2023, to $1,900 for 2024, and to $2,000 for 2025, with these changes starting from the 2023 taxable year.

The section amends Paragraph (2) of section 24(h) to allow for an inflation adjustment to the $2,000 credit amount starting in the taxable year beginning after 2023. It specifies that the adjustment will be based on the cost-of-living adjustment determined under section 1(f)(3), with a reference year change from 2016 to 2022, and any increase will be rounded down to the nearest $100.

The section allows taxpayers to use their earned income from the previous year to calculate their tax credit if it is higher than their current year's income, starting from the 2024 tax year. Additionally, any errors relating to this election will be treated as mathematical errors for tax processing purposes.

The text describes changes to tax legislation regarding domestic research and experimental expenditures, including delaying amortization until after 2025 and allowing deductions until then. It outlines rules for expensing and amortizing these costs, explains how they interact with other tax provisions, and includes transition guidelines for implementing these changes.

This section allows taxpayers to deduct domestic research or experimental expenses from their income during the taxable year if they are connected to their business, provided these expenses are not related to foreign research. Taxpayers can choose to instead capitalize and amortize these expenses over at least 60 months. Special rules state it does not cover land or property improvements, mineral exploration costs, or software development, and it will not apply after December 31, 2025, treating changes as accounting method adjustments.

The bill extends the time period for claiming depreciation, amortization, or depletion when calculating business interest limits, changing the deadline from January 1, 2022, to January 1, 2026. Taxpayers can opt to apply this extension retroactively for taxable years starting after December 31, 2021, instead of December 31, 2023, if they follow the guidelines set by the Secretary.

The section extends the 100 percent bonus depreciation benefit to qualify for an extra three years, moving the cutoff dates for certain types of property to 2026 or 2027. Additionally, these changes will apply to properties placed in service or specific fruit and nut-bearing plants planted after December 31, 2022.

The section increases the maximum amounts businesses can expense for depreciable assets under Section 179 of the IRS Code, with limits raised to $1,290,000 and $3,220,000, and updates inflation adjustments starting in 2024. These changes apply to property used in business from the year 2024 onwards.

The section titled "SEC. 301" establishes that the official name for this part of the legislation is the “United States-Taiwan Expedited Double-Tax Relief Act.”

The section outlines special tax rules for residents of Taiwan, allowing for reduced rates on specific types of income like dividends and interest from U.S. sources when certain conditions are met. It also describes what constitutes a “qualified resident of Taiwan” and provides tax exceptions for qualified wages and certain entertainment income, ensuring reciprocal tax benefits between the U.S. and Taiwan.

The section outlines tax rules for Taiwanese residents with income from U.S. sources, specifying how interest, dividends, wages, and other types of income are taxed. It includes provisions for certain exceptions, special rates, and definitions related to permanent establishments and qualified residents, plus it highlights the need for reciprocal benefits for U.S. residents and the authority of the President to facilitate such reciprocity with Taiwan.

The section describes that certain residents of Taiwan might be eligible for lower tax withholding rates, and it refers readers to section 894A for more details.

The section is designated as the “United States-Taiwan Tax Agreement Authorization Act”, indicating its purpose to provide legal authority for a tax agreement between the United States and Taiwan.

The section provides definitions for key terms used in the subtitle, including "Agreement," which refers to a specific tax agreement, "appropriate congressional committees," which are named committees in the Senate and House, "approval legislation," which is the legislation needed to approve the Agreement, and "implementing legislation," which refers to changes to tax law needed to put the Agreement into effect.

The President is allowed to negotiate a tax agreement with Taiwan, following certain guidelines. The agreement must align with the 2016 United States Model Income Tax Convention, can reference existing laws and agreements on double taxation, and requires approval from both the U.S. and Taiwanese authorities before taking effect.

The section outlines the requirement for the President to notify Congress at least 15 days before starting negotiations with Taiwan on an Agreement. Additionally, it mandates regular briefings and consultations with Congress throughout the negotiation process, ensuring Congress is informed about the objectives, status, and potential impacts on existing laws.

The section outlines that an agreement can't start until the President publishes the agreement on a public website at least 60 days in advance and both approval and implementation laws are passed. Additionally, the Secretary of the Treasury must confirm that Taiwan has approved and prepared to implement the agreement.

The section requires the President to submit the final text and a technical explanation of an agreement to Congress within 270 days of entering into it. Additionally, the Secretary of the Treasury must provide a description of necessary legal changes and proposed administrative actions needed to implement the agreement.

The provision details how approval and implementing legislation related to a specific agreement should proceed in the U.S. Congress. It specifies that approval legislation is referred to the Committees on Foreign Relations in the Senate and Ways and Means in the House, while implementing legislation is referred to the Senate Committee on Finance and the House Committee on Ways and Means.

The section explains that if anything in the Agreement or related legislation conflicts with the Internal Revenue Code of 1986, the Code takes precedence. Additionally, the section clarifies that the subtitle is not intended to change or limit any existing U.S. laws unless it specifically states otherwise.

This section allows for new tax agreements related to Taiwan to be considered part of existing agreements once they are approved and implemented. Each new tax agreement with Taiwan will be handled separately under existing laws.

The section explains that while the United States usually makes tax agreements with other countries through treaties approved by the Senate, it can't make such a treaty with Taiwan due to its unique status. Therefore, the U.S. plans to provide additional tax relief to Taiwan following a special agreement, while continuing to make similar agreements with other countries.

The section designates the name of the title as the “Federal Disaster Tax Relief Act of 2024.”

For the purposes of applying section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, section 301 of that Act will now reference "the Federal Disaster Tax Relief Act of 2024" instead of "this Act" every time it is mentioned.

The section explains that for tax purposes, money received by an individual as compensation for losses or damages from specific federally declared wildfires is not counted as income, as long as those losses aren't covered by insurance. It also notes that individuals can't claim tax deductions for expenses already covered by these payments and this tax exclusion applies to amounts received between 2020 and 2025.

This section states that any compensation given to individuals because of the East Palestine train derailment on February 3, 2023, will be considered tax-free disaster relief payments under U.S. tax law. These payments can come from government agencies, Norfolk Southern Railway, or related entities and apply to amounts received on or after the derailment date.

The section increases the state housing credit ceiling for low-income housing credits by adding the years 2023, 2024, and 2025 to the list of applicable years, and it changes a heading to refer to "certain calendar years." These changes will take effect for calendar years after 2022.

The amendment to Section 42(h)(4) introduces a special rule allowing certain buildings to receive tax credits if a specified percentage of their costs are financed with tax-exempt bonds, setting thresholds at 50% or 30% depending on the type of obligations. This change applies to buildings placed in service starting after December 31, 2023, and specifies that rehabilitation costs treated as a new building will follow the same rule.

The section modifies existing tax laws to increase the threshold amount for requiring information reporting from $600 to $1,000, with adjustments for inflation starting in 2025. It also updates related provisions to reflect this change and applies the new threshold to the backup withholding and reporting on services and direct sales, starting from January 1, 2024.

The section outlines penalties and requirements related to COVID-related employee retention tax credits (ERTC). It increases penalties for promoters who assist in underreporting tax liabilities, enforces due diligence requirements, establishes definitions for terms related to the credits, and specifies an expiration date for claiming refunds. Additionally, it mandates regulatory guidance to ensure compliance.