Ways and Means Committee Passes Tax Reform Bill; House Action Likely Later This Week
On November 9, the House Ways and Means Committee completed its mark-up of Chairman Brady’s (R-TX) tax reform bill, the Tax Cuts and Jobs Act, H.R. 1, and reported the bill to the full House, which is expected to consider the bill this Thursday, November 16. The Committee did not adopt any amendments that would have changed the bill’s elimination of tax-exempt private activity bonds (PAB) or that would have modified the Low Income Housing Tax Credit statute, which the underlying bill also did not change.
During the mark-up, the Committee rejected via party-line vote an amendment introduced by Representative Suzan DelBene (D-WA) that would have restored tax-exempt PABs and increased Housing Credit authority by 50 percent, phased in over a five-year period. The amendment failed on a party-line vote, 24 to 16, as did all Democratic amendments offered.
The Committee adopted two amendments in the nature of substitutes offered by Chairman Kevin Brady (R-TX). His amendments made a number of changes, including changes in the maximum rate on business income of individuals, the earned income tax credit program, the exclusion from gross income for dependent care assistance, and the adoption tax credit.
At this time, we do not expect any substantive amendments to H.R. 1 on the House floor. The Rules Committee meets Wednesday afternoon to consider potential amendments and the floor procedure for House consideration of the bill.