The House Ways and Means Committee has released the text of its long-awaited tax reform bill.

Key business provisions of the bill include:

 — Reducing the 35% corporate income tax rate to 20% beginning in 2018 and repealing the corporate alternative minimum tax (AMT), also beginning in 2018

 — Modifying the current worldwide taxation system to: (i) exempt from US tax dividends paid by foreign subsidiaries paid from foreign earnings; and (ii) tax, on a current basis, potentially significant amounts of foreign income under anti-base erosion provisions and modifications to subpart F

 — Imposing a one-time 12% tax on accumulated foreign earnings, reduced to 5% for illiquid assets

 — Allowing businesses to expense the cost of certain new property placed in service after September 27, 2017, and before January 1, 2023

 — Eliminating various deductions and credits, such as the Section 199 domestic production deduction, the work opportunity tax credit and the new markets tax credit (but not the research credit)

 — Limiting the net interest expense deduction

 — Limiting the tax rate applied to a portion of a pass-through entity's business income to 25%

Key individual provisions of the bill include:

 — Replacing the seven income tax brackets for individual taxpayers with four rates of 12%, 25%, 35% and 39.6%

 — Repealing the individual AMT

 — Limiting deductibility of interest on new home mortgages of $500,000 or more and further limiting the exclusion of gain on the sale of principal residences

 — Repealing the estate tax in six years

 — Limiting the individual itemized deduction for state and local taxes to $10,000 in property taxes

Tax Alerts on the bill are forthcoming.

Plan to attend Policy Perspectives: Ernst & Young LLP's rapid response to the House Ways and Means Committee's tax reform legislation today, November 2 at 6:30 p.m. ET. EY National Tax Co-Director Michael Mundaca, along with EY's Ray Beeman, Cathy Koch and Jose Murillo, will hold a rapid response discussion of the legislation and what to expect next as the process unfolds.

Click here to register for the audio webcast, which can be streamed from devices with internet connectivity.

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