Legislative update: Ways and Means Committee releases amended Chairman’s Mark for budget reconciliation bill
Amended Mark contains full list of tax provisions for budget reconciliation legislation
The House Ways and Means Committee today released an amended Chairman’s Mark (389 pages) containing the full list of tax provisions for the budget reconciliation legislation.
The Ways and Means Committee previously released an initial Chairman’s Mark including provisions that would make many of the tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA) permanent, with limited changes to certain provisions (e.g., increase in deduction under section 199A and increase in estate tax exemption base amount from $5,000,000 to $15,000,000). Read TaxNewsFlash
The amended Mark addresses a number of expiring items not addressed in the initial Mark, including an extension of R&D expensing, 100% bonus depreciation, the more favorable interest deductibility rules, and extending and increasing the individual SALT cap. The amended Mark also includes a number of President Trump’s tax-related campaign proposals, such as 100% bonus depreciation for property used in manufacturing, and limitations on the taxation of tips and overtime pay.
The legislation also proposes a number of tax increases to offset the cost of the bill. These include sunsetting several energy credits earlier than scheduled under current law. The legislation would also impose retaliatory taxes against taxpayers based in jurisdictions that impose taxes deemed to be discriminatory or extraterritorial, including the undertaxed profits rule, digital services taxes, and diverted profits taxes. The legislation would increase taxes on certain college endowments and certain private foundations and would also limit deductibility of executive compensation among many other revenue-raising provisions.
Read the Ways and Means Committee section-by-section description.
JCT description and estimated revenue effects
The Joint Committee on Taxation (JCT) released a description of the tax provisions of the Chairman’s amendment in the nature of a substitute (JCX-21-25), as well as estimated revenue effects of the proposed tax provisions (JCX-22-25R).
Next steps
The Ways and Means Committee is scheduled to mark up the complete Chairman’s Mark tomorrow, Tuesday, May 13, at 2:30 PM ET.
Read a statement from House Ways and Means Committee Chairman Jason Smith (R-MO).
Read a statement from House Ways and Means Committee Ranking Member Richard Neal (D-MA).
KPMG will provide preliminary analysis and observations on the complete Chairman’s Mark soon.