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July 28, 2022

Reconciliation bill with tax provisions takes shape, Senate passes CHIPS-Plus bill

President Biden, Senator Joe Manchin (D-WV), and Senate Majority Leader Chuck Schumer (D-NY) have announced a deal on a $740 billion reconciliation bill with tax provisions.  Components of the deal include:

o Imposing a 15% corporate minimum tax ($313 billion)

o Implementing prescription drug pricing reform ($288 billion)

o Increasing IRS tax enforcement ($124 billion)

o Closing the carried interest "loophole" ($14 billion)

o Investing in energy security and addressing climate change ($369 billion)

o Extending the Affordable Care Act subsidies ($64 billion)

The Senate will take up the bill next week. The House would reconvene to vote on a Senate-passed bill. 

In other legislative news, the Senate passed the CHIPS and Science Act, a bill that aims to build a domestic supply chain for semiconductor chips. The House could take up the bill as soon as today. A WCEY Tax Alert has details.