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.
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).
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 | email@example.com
Preston Quesenberry | +1 202 533 3985 | firstname.lastname@example.org
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.