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June 9, 2023
2023-1034

House Ways and Means Committee releases three tax bills

House Ways and Means Committee Chairman Jason Smith (R-MO) and other Republicans on the Committee today (June 9) introduced three bills that the committee plans to mark up on Tuesday, June 13. The bills "are being combined as part of a new legislative tax relief and jobs package," Smith said in a statement. The bills are:

  • The Tax Cuts and Working Families Act (HR 3936), which would increase the standard deduction for two years, and rename it the "Guaranteed Deduction."
  • The Small Business Jobs Act (HR 3937), aimed at providing information reporting relief for small businesses and increasing the reporting threshold for Venmo and Paypal type payments, encouraging investment in new equipment and production capacity for small businesses, and expanding the Opportunity Zone program to rural communities.
  • The Build It in America Act (HR 3938), which would retroactively restore expensing of R&D costs, retroactively extend preferable rules for interest expense deductibility under section 163(j), allowing for 100% expensing of manufacturing equipment, overriding in part the final foreign tax credit regulations, repealing the Superfund tax on petroleum, tightening existing rules relating to real estate sales by foreign companies and investors, and repealing several of the energy incentives in last year's Inflation Reduction Act.

Legislation introduced a week ago by Chairman Smith and committee Republicans relating to retaliation against countries that adopt certain aspects of the OECD's global minimum tax regime was not included in the package released today, but our understanding is that Chairman Smith still plans for the Committee to consider this legislation as well.

PDFs of the bill texts and summaries for each are attached with this Tax Alert. Washington Council Ernst & Young will distribute an analysis of the bills later today.

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Contact Information
For additional information concerning this Alert, please contact:
 
Washington Council Ernst & Young
   • Any member of the group, at (202) 293-7474.

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ATTACHMENTS

Ways & Means tax bills

HR 3936

HR 3937

HR 3938

Build it in America

Tax cuts for working families

 

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