Earlier today, the House of Representatives passed the Tax Cuts & Jobs Act (H.R. 1). While a noteworthy milestone in the tax reform process, it’s only a first step. The Senate Finance Committee continues to work on its proposal, which differs from the House in significant areas. If the Senate does pass legislation, it will still have to be reconciled with the House before reaching the president’s desk.
Upon House passage, AED’s President and CEO Brian P. McGuire said, “As with any major piece of legislation, the Tax Cuts & Jobs Act has some good and some bad. As the process moves forward, AED will continue to work with lawmakers to ensure a final bill benefits the capital intensive, small-to-medium-sized companies that dominate the construction equipment industry. There’s a lot of work yet to be completed and AED will remain at the table to help Congress, not just get tax reform done, but to get it done right.”
AED remains concerned with how both the House and Senate proposals treat tax pass-through’s, limits business interest and expensing, eliminates like-kind exchanges for personal property and restricts the use of private activity bonds for infrastructure projects. The temporary nature of many provisions in both bills is also a major concern.
While the process is moving quickly by congressional standards, there’s still ample time to weigh-in and seek modifications. AED recommends you have your CPA or tax attorney review the legislative proposals to determine the impact it will have on your individual company. Please provide feedback to AED’s Vice President of Government Affairs Daniel B. Fisher, as AED is working to craft an industry response to the bills.
To view the House-passed Tax Cuts & Jobs Act, visit: https://www.gpo.gov/fdsys/pkg/BILLS-115hr1rh/pdf/BILLS-115hr1rh.pdf
To view the current Senate proposal, visit: https://www.finance.senate.gov/imo/media/doc/11.14.17%20Chairman’s%20Modified%20Mark.pdf
To view the letter AED delivered to Senate Finance Committee members regarding like-kind exchanges, visit: http://aednet.org/wp-content/uploads/2017/11/AED-SenateLKELetter.pdf
To view the letter AED delivered to House Ways & Means Committee members regarding like-kind exchanges, visit: http://aednet.org/wp-content/uploads/2017/11/AED-LKELetter2.pdf
To view AED’s letter regarding the importance of the business interest deduction, visit: http://aednet.org/wp-content/uploads/2017/09/AED-BusinessInterestTaxReformLetter.pdf
To view AED’s comments to the Senate Finance Committee regarding tax reform priorities, visit: http://aednet.org/wp-content/uploads/2017/07/AED-FinanceCommitteeTaxReformComments-20170717.pdf