KPMG report: Congress reconvenes—What’s next for tax legislation?
Quick look back at 2021 and high level observations about the federal tax legislative outlook for 2022
The second session of the 117th Congress began today, January 3, 2022. As in the first session, the Democrats control the House of Representatives by only a handful of votes. Further, the Democrats control the “50-50” Senate only because of Vice President Harris’s role as president of the Senate and her ability to cast a vote on the Senate floor in the case of a tie.
Continued consideration of “Build Back Better” legislation (with its major tax proposals) is expected to be a high Democratic priority as 2022 begins. Other priorities competing for attention include election reform, funding the government, and, possibly, addressing the latest COVID-19 outbreak.
In addition, provisions relating to the amortization of research expenses and a tightening of the limit on the deduction for business interest expense become effective in 2022, while certain tax incentives expired at the end of 2021. These changes raise the question of whether some expirations and other scheduled changes to the tax law might be addressed (potentially retroactively) in the second session of the 117th Congress.
Read a KPMG report [PDF 982 KB] that takes a quick look back at 2021 and then provides some high level observations about the federal tax legislative outlook for 2022.
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