House and Senate Conference Committee Release Tax Reform Plan
On Friday afternoon, December 15, the House and Senate Conference Committee released the much anticipated tax reform plan entitled the Tax Cuts and Jobs Act. With a total length of 1097 pages, the fine nuances of this bill will take time to fully absorb, but the high level details for S and C corporations are similar to those floated earlier this week.
For financial institutions, the plan includes:
- A corporate tax rate of 21% effective January 1, 2018
- A repeal of the corporate alternative minimum tax (AMT)
- A top personal tax rate of 37%
- A 20% tax deduction that applies to S Corporation pass through income
Senator Bob Corker of Tennessee has said he will vote for the bill after initially voting against the version that was passed by the Senate. Senator Marco Rubio has also reportedly been appeased by this version after last minute changes were made to expand the child tax credit. The House and Senate are expected to vote on the bill early next week and it seems more likely than ever that a final version will be signed before year-end.
The House Ways and Means Committee has provided a summary as well as the full conference report on their website:
https://waysandmeans.house.gov/wp-content/uploads/2017/12/TCJA_Conference121517.pdf
http://docs.house.gov/billsthisweek/20171218/CRPT-115HRPT-466.pdf
Amanda Garnett is a principal in the financial institutions practice of CliftonLarsonAllen (CLA) from Peoria, Illinois. She currently leads the firm’s Midwest financial institution tax team and serves institutions ranging in size from $15 million to $3.5 billion in total assets. In addition to tax compliance, Amanda assists clients in the areas of tax consulting, mergers and acquisitions, and regulatory reporting. She also routinely teaches courses for banking associations across the country.
Comments are closed.