Exempt organization-related provisions in Senate Finance Committee’s revised text of “Build Back Better Act”
Updated legislative text for the “Build Back Better Act”
Senate Finance Committee’s revised text of “Build Back Better Act”
The U.S. Senate Finance Committee on December 11, 2021, released updated legislative text for the “Build Back Better Act.”
- Read the text of the bill [PDF 1.7 MB] (1,180 pages) as released by the Finance Committee (the tax-related items begin on page 275).
- Read more about the bill that was released by the Finance Committee on December 11, 2021: TaxNewsFlash
The bill is currently under consideration in the Senate.
In a related statement, Finance Chairman Ron Wyden (D-OR) said:
The Finance Committee has made targeted improvements to the Build Back Better Act, and is ready to move forward in this process…. While conversations are continuing, the committee is prepared for bipartisan meetings with the Senate parliamentarian next week.
Background
The “Build Back Better Act” was approved by the House of Representatives on November 19, 2021. Read a KPMG report regarding the exempt organization-related provisions in the House-passed version of the legislation: TaxNewsFlash
Exempt organization-related provisions
- The Senate Finance Committee’s version of the bill contains essentially the same provision as included in the House-passed version of the bill—one that would provide a tax credit to donors to certain certified public universities equal to 40% of contributions for research infrastructure. Also, as with the House-passed version of the bill, the Senate Finance Committee’s version of the bill similarly does not include a previously proposed provision that would have modified the excise tax on investment income of certain private colleges and universities in Code section 4968.
- The current version of the bill from the Senate Finance Committee includes a “placeholder for compromise on deduction for state and local taxes.” The version of the bill passed by the House includes a measure that would increase the cap on the individual deduction for state and local taxes to $80,000 (from $10,000) for the 2021-2030 period (a measure that could increase the number of taxpayers taking itemized deductions, including the charitable contribution deduction).
What’s next?
This legislation is likely to change as it moves through procedural steps in the Senate. With the scheduled holiday recess approaching, the Senate must act expeditiously if the bill is to be enacted in 2021.
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Ruth Madrigal | +1 202 533 8817 | ruthmadrigal@kpmg.com
Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com
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