House leaders want the Ways & Means Committee to mark up legislation to meet the panel's reconciliation instructions for a GOP-only bill with extensions of Tax Cuts & Jobs Act (TCJA) provisions as the centerpiece next week. The prior expectation was for a markup the week after next, possibly May 12-13, but Politico reported House Speaker Mike Johnson (R-LA) and Majority Leader Steve Scalise (R-LA) as saying they want the Committee to act the week of May 5. "On schedule, it'll be next week," Johnson said. GOP leadership has wanted the House to approve a reconciliation bill by Memorial Day. Ways & Means Chairman Jason Smith (R-MO) said he had a date in mind for the markup but wasn't ready to announce it.

Treasury Secretary Scott Bessent is eyeing Independence Day for completion of the bill. On Fox News, he said Memorial Day is when "Speaker Johnson expects to have the House portion complete and then pass it over to the Senate. And what I am hoping for is that we will have a signed, sealed, and delivered tax bill by July 4th that will give great surety to American companies, the American consumer, and provide a real impetus for the US economy just as the tax bill did 2018, '19 and even '20 during COVID."

Ways & Means could have been expected to be among the first committees to act on their reconciliation instructions given member enthusiasm for TCJA extensions, but the exact parameters of the panel's product depend on the work of other committees. The House portion of the resolution requires $2 trillion in deficit reduction as a condition for a full $4.5 trillion deficit increase for tax cuts under the Committee's instruction, which could be reduced to as low as $4 trillion if the $1.5 trillion floor for deficit reduction isn't exceeded. Ways & Means Committee Republicans won't know the level of savings from other committees until those panels act, and that will affect the level of tax cuts they can approve and perhaps to what extent they may need to act on deficit reduction proposals under their jurisdiction.

"I don't know the schedule yet for Ways and Means in terms of a markup, but just the way the House instructions are designed, you've got to have a number to mark up to, and so I think it just makes sense it has to come after … most of the work's done," said Ways & Means member Lloyd Smucker (R-Pa) in Tax Notes. "We need to know the number, essentially, I think, before we can do our markup."

The Senate portion sets a current policy baseline that won't count the $4 trillion cost of TCJA extensions and provides the Finance Committee an instruction for up to a $1.5 trillion deficit increase for additional tax cuts. Chairman Crapo has said a tax bill may include Child Tax Credit changes and Trump tax proposals, which include no tax on tips, overtime, and Social Security benefits, cutting taxes on "domestic production and all manufacturing" and an extension of 100% expensing retroactive to January 20, 2025.

Axios reported April 29 that during the Monday Big Six meeting — with Speaker Johnson and Senate Majority Leader John Thune (R-SD), Senate Finance Committee Chairman Mike Crapo (R-ID) and Ways & Means Chairman Smith, and Secretary Bessent and National Economic Council Director Kevin Hassett — the Administration made a push for deeper corporate tax benefits than those previously under discussion. Secretary Bessent previously proposed accelerated depreciation breaks for the construction of factories. The administration wants "deductibility for auto loans for American-made cars, and immediate expensing, 100% expensing for equipment," Bessent said after the meeting. "And we are going to add factory structures for that also."

The report said the benefits are already raising cost concerns among some Republicans. Senator Thom Tillis (R-NC), who previously questioned finding funds for additional tax cut proposals and therefore making extending the TCJA more complicated, said in the report, "Everything here comes down to, how do you pay for it and how does it fit into our other priorities? When we're having such a difficult time getting 'pay fors' for the other policies in the bill. We've got to have that discussion about timing and priority."

Today there are more meetings related to reconciliation. A group of high-tax state Republicans is slated to meet with Speaker Johnson and Chairman Smith regarding relief from the $10,000 state and local tax (SALT) deduction cap, which is a very important topic related to the tax bill, especially given that Republicans can only spare three votes with a 220-213 majority. There continues to be a focus on an increase in the cap to $25,000 per individual, though some members are calling for a cap of $30,000-$40,000. "We'll see if and when Ways and Means presents us a number, how close that is to the number that we want," said Rep. Nick LaLota (R-NY) in Morning Tax.

House Energy and Commerce Committee Chair Brett Guthrie (R-KY) is set to discuss Medicaid with Republican members concerned that the Committee's $880 billion deficit reduction requirement could require Medicaid cuts beyond just addressing fraud and abuse. A markup may be scheduled for May 7. Politico reported: "Energy and Commerce is considering cost-saving policies to Medicaid including work requirements and more frequent eligibility checks — policies that are less contentious among Republicans — along with a more controversial proposal to put in place so-called per capita caps on Medicaid funding to certain beneficiaries in states that have expanded the program under the Affordable Care Act."

Seven House committees are acting on reconciliation instructions this week:

Treasury - The Senate Finance Committee April 29 approved the nomination of Ken Kies to be Assistant Treasury Secretary for Tax Policy. The vote was 14-13 along party lines. Questions for the record submitted pursuant to the April 10 nomination hearing are available here.

Hearings — The Finance Committee has set a hearing for today, April 30 (at 10 a.m.), on the nomination of Rodney Scott to be Commissioner of U.S. Customs and Border Protection. The Committee is planning a hearing for Tuesday, May 6 (at 10 a.m.) on the nominations of James O'Neill to be Deputy Secretary of Health and Human Services and Gary Andres to be an Assistant Secretary of Health and Human Services.

Bill intros — On April 17, Rep. Aaron Bean (R-FL) introduced the Maritime Fuel Tax Parity Act (H.R. 2925), which would equalize the excise tax treatment of maritime shipping fuels. A press release said the bill would "correct an outdated tax code provision by exempting alternative fuels, including liquefied natural gas (LNG), for marine vessels from paying Federal Highway Trust Fund excise taxes."

Bill introductions from April 28 include a bill (H.R. 3042) by Ways & Means member Nicole Malliotakis (R-NY) to boost domestic medical manufacturing activity by providing incentives in economically distressed areas of the United States and its possessions.

Ways & Means member Greg Murphy (R-NC) April 28 announced the introduction of the No Handouts for Drug Advertisements Act, to prohibit the tax deduction for expenses related to direct-to-consumer advertising of prescription and compounded drugs. The bill would eliminate the tax deduction companies can claim for pharmaceutical marketing and promotional expenses related to advertising on television, radio, social media, and other common platforms.

Today, Wednesday, April 30 (at 12 p.m.), is the EY Webcast, "Beyond the Trump Administration's First 100 Days: What's Next for Businesses?"