Final Tax Legislation Heads to Senate, House
Tax-exemption for private activity bonds, the 2018 and 2019 new markets tax credit (NMTC) allocation application rounds and a revised historic tax credit (HTC) will be retained under a final version of the Tax Cuts and Jobs Act released by a joint House-Senate conference today. The low-income housing tax credit (LIHTC) is also preserved, as are existing phasedowns for the renewable energy investment tax credit (ITC) and production tax credit (PTC). The bill would eliminate the 10 percent non-historic credit and require the 20 percent credit be taken over five years, rather than when the property is placed in service, as under current law. The bill would reduce the top corporate tax rate to 21 percent, allow a 20 percent deduction for pass-through companies, eliminate the corporate alternative minimum tax, set a $750,000 cap for mortgage interest deduction and a $10,000 limit on state and local tax deduction, among other provisions. The Senate and House are expected to vote on the final bill next week.
- 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.
- There will be a Novogradac & Company LLP webinar Thursday covering the important issues in the tax bill.