House Republicans Release Tax Extender and Technical Correction Bill

• November 28, 2018
• Amanda Garnett

Earlier this week, the Republican led House Ways and Means Committee released a 297-page bill that included certain tax extenders as well as a technical corrections related to last year’s Tax Cuts and Jobs Act (“TCJA”).  The Republicans are hoping to push through the bill during the lame duck session prior to the Congressional change over in January.

Highlights of Provisions

• Extension of the deduction for private mortgage insurance premiums
• Extension of energy efficient buildings incentives
• Technical corrections related to accelerated depreciation on qualified improvement property under the TCJA
• Several changes to the administration of retirement accounts, particularly for small employers
• A new provision allowing individuals over the age of 70 ½ years to be able to contribute to individual retirement accounts (IRAs)

Political Climate

Senate Democrats reacted negatively when the House bill was released unexpectedly on Monday.  In the 100-seat Senate, the bill would need sixty votes to advance, which would require support from several Democratic Senators.

Senator Mark Warner, from the Senate Finance Committee, reportedly went so far as to call it an “imaginary bill”.   But since it includes provisions to help individuals save for retirement, there is at least a possibility it will receive some bipartisan support.

Next Steps

This has been a tumultuous year for tax legislation and there is still a lot of guidance pending from the IRS as well as other technical corrections expected from Congress. CLA is here to help you wade through chaos.

Please contact us.

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