House Ways and Means Committee Chairman Richard Neal (D-MA) today announced that the committee will meet on Thursday, June 20, to mark up four bills, three of which include tax provisions.
The three tax-related bills are:
[The hyperlinks above are to the statutory language. Documents about these bills from the Joint Committee on Taxation are provided later in this report.]
The tax bills include some proposed changes to provisions enacted as part of the 2017 tax law that is commonly known as the “Tax Cuts and Jobs Act” (TCJA) (Pub. L. No. 115-97).
H.R. 3301 generally would extend through 2020 certain temporary tax provisions that expired in 2017 or 2018, or that are scheduled to expire at the end of 2019. In addition, it includes various tax provisions relating to disaster relief (including a provision relating to payments to possessions with mirror tax systems). The disaster relief title of the bill includes a provision that would change the current two-tiered excise tax rate applicable to investment income of certain private foundations (Code section 4940(a)) to a single 1.39% rate. This would increase the excise tax paid by some private foundations, and decrease the amount paid by others.
The bill also includes a revenue-raising provision that would shorten by three years an estate tax reduction contained in the 2017 tax law. The TCJA temporarily increased the basic exclusion amount from $5 million to $10 million for decedents dying or gifts made before January 1, 2026. H.R. 3301 would replace the January 1, 2026 “sunset” date for the increased exclusion amount with January 1, 2023.
H.R. 3300 would expand the earned income tax credit; make the child tax credit fully refundable for some families; and expand the dependent care assistance credit. Some of the provisions are temporary.
Further, the bill would repeal a provision in the TCJA that requires the inclusion of certain fringe benefit expenses in unrelated business taxable income (Code section 512(a)(7)). The repeal would be effective retroactive to the effective date of the change made by the 2017 tax law.
H.R. 3298 would amend the Internal Revenue Code to clarify that all tax provisions would apply to legally married same-sex couples in the same manner as to other married couples. It also would allow legally married same-sex couples to change their filing status for federal income tax returns outside the statute of limitations.
The Joint Committee on Taxation (JCT) today released the following documents regarding the tax bills for the Ways and Means mark-up:
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