TAX TAKE: Can't Wait Too Long for the Senate Draft
Tax Alert
The Senate Committee on Finance could release its preliminary draft of the tax title of the One Big Beautiful Bill Act (H.R. 1) as early as today. Speculation is rampant as to how the Senate version will differ from the House-passed version of the bill.
Chairman Mike Crapo's (R-ID) version is anticipated to make significant changes to the individual state and local tax (SALT) deduction cap and the Biden-era green energy credits, as well as make the "Big Three" business tax provisions permanent, including 100 percent bonus depreciation. Other potential rumored changes include a delay to the proposed section 899 international retaliation tax and the inclusion of selected international tax reform proposals from the International Competition for American Jobs Act (S. 1605), recently introduced by Senator Thom Tillis (R-NC).
It is unlikely the initial text will include all of these potential changes, especially with Senate Republicans still negotiating to balance their interests with the practical reality of what can pass the House again.
With the Fourth of July in sight, it is not expected that the Committee on Finance will hold an official markup. Instead, the initial text will function as a trial balloon to get feedback on potential changes needed to secure votes in the Senate, balanced against political realities in the House and trying to ensure that the Senate tax package doesn't fall under its own weight. Any additional changes will be incorporated into a "substitute amendment" that will be considered on the Senate floor in a form that can pass the Senate and the House without losing more than three Republicans in either chamber.
The wait is about to end, and we'll soon know if a Fourth of July signing ceremony is in the cards. #TaxTake
The information contained in this communication is not intended as legal advice or as an opinion on specific facts. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. For more information, please contact one of the senders or your existing Miller & Chevalier lawyer contact. The invitation to contact the firm and its lawyers is not to be construed as a solicitation for legal work. Any new lawyer-client relationship will be confirmed in writing.
This, and related communications, are protected by copyright laws and treaties. You may make a single copy for personal use. You may make copies for others, but not for commercial purposes. If you give a copy to anyone else, it must be in its original, unmodified form, and must include all attributions of authorship, copyright notices, and republication notices. Except as described above, it is unlawful to copy, republish, redistribute, and/or alter this presentation without prior written consent of the copyright holder.