The House Rules Committee has adopted House Ways and Means Committee Chairman Kevin Brady's (R-TX) Manager's Amendment to the year-end tax legislation unveiled earlier this week. The full House will likely vote on the measure on Friday, November 30, 2018.

The package, the Retirement, Savings, and Other Tax Relief Act of 2018 and the Taxpayer First Act of 2018, addresses tax extenders, retirement policy provisions, seven Tax Cuts and Jobs Act (TCJA) technical corrections, proposals from the House-passed innovation tax bill, and IRS reform provisions. The overall outlook for the bill is unclear given concerns expressed by Senate Democrats, whose votes will be necessary to overcome the 60-vote filibuster threshold, over being excluded from its development and over its TCJA fixes and other provisions.

The Manager's Amendment, which is attached:

• clarifies that the Carr and Hill fires are included within the Mendocino fire area and the Camp and Woolsey fire area, respectively
• for purposes of defining a qualified Yutu distribution, clarifies the designation of the disaster area and typhoon to reference "Typhoon Yutu disaster area" and "Typhoon Yutu", respectively
• aligns the start date for determining whether an employer is eligible for the Mendocino wildfire employee retention credit with the start date of the designated incident period in the federal disaster declaration
• provides for automatic extension of IRS filing dates for taxpayers in a federally declared disaster area
• clarifies the applicability period for modifications with respect to Section 403(b) plans
• clarifies the language regarding refunds of overpayments and installments of deemed repatriation net tax liability
• eliminates the increase in unrelated business taxable income related to certain transportation fringe benefits
• modifies the rules related to business holdings of private foundations

In advance of Rules Committee activity related to the legislation, the Congressional Budget Office released a cost estimate (attached) finding that the package would increase the deficit by $54.68 billion over 10 years.

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ATTACHMENTS

Rules Committee Print 115-85

H.R. 88