• Corporate Tax Reforms Proposed by House’s Tax Bill
  • November 9, 2017
  • The tax bill released by the House Ways and Means Committee offers three major changes to corporate tax legislation. First, businesses will be able to immediately deduct qualified property for five years. The deduction is no longer limited to taxpayers that had “original use” of the property. The bill excludes from the definition of qualified property any property used by a regulated public utility company or any property used in a real property trade or business. Second, the net interest expense deduction for every business, regardless of its form, is limited to 30 percent of the business’s adjusted taxable income. Finally, 100% of the foreign-source portion of dividends paid by a foreign corporation to a U.S. corporate shareholder that owns 10 percent or more of the foreign corporation would be exempt from U.S. taxation.

    Read more: Policy Highlights – The Tax Cuts & Jobs Act; Committee on Ways and Means – Tax Cuts & Jobs Act