Congress Passes $1.5 Trillion Tax Cut Bill
The House of Representatives today passed the Tax Cuts and Jobs Act (H.R. 1) 224-201, with 12 Republicans against it and no Democrats voting for it. The Senate passed the legislation earlier, 51-48 on a party-line vote. The tax bill preserves the low-income housing tax credit (LIHTC), the tax exemption for private activity bonds, the 2018 and 2019 new markets tax credit (NMTC) allocation application rounds, a revised historic tax credit (HTC) and existing phasedowns for the renewable energy investment tax credit (ITC) and production tax credit (PTC). The bill eliminates the 10 percent non-historic credit and requires the 20 percent credit be taken over five years, rather than when the property is placed in service, as under previous law. The bill reduces the top corporate tax rate to 21 percent, allows a 20 percent deduction for pass-through companies, eliminates the corporate alternative minimum tax, sets a $750,000 cap for mortgage interest deduction and a $10,000 limit on state and local tax deduction, among other provisions. The bill heads to the president’s desk for his signature.
- More detailed discussion is available in this Notes from Novogradac blog post.
- Tax reform news and related information is available at www.taxreformresourcecenter.com.
- Policy highlights and changes are broken down in a chart including the most significant issues in each iteration of the tax reform bills.
- Novogradac’s Tax Cuts and Jobs Act Webinar: What the Tax Credit Community Needs to Know is open for registration and will air Dec. 21 at 1 p.m. ET.