The House and Senate will now begin a reconciliation process to work out the remaining differences between their respective bills. The final reconciled version of the bill then would have to be passed by both chambers of Congress before it can be presented to President Trump to sign it into law.
Some of the major provisions of the final Senate bill include a 20 percent corporation income tax rate, a 23 percent deduction for domestic qualified business income from pass-through entities, and lower individual income tax rates. The final Senate bill includes a $10,000 deduction for state and local property taxes that was not included in earlier versions. The bill repeals the individual mandate that imposes a penalty on individual taxpayers without health insurance coverage.
The Senate bill retains the Alternative Minimum Tax for both corporations and individuals although with higher exemptions than those allowed under current law. The bill also retains the estate tax, but doubles the exemption allowed under current law.
Whitley Penn will continue to monitor the status of the tax reform process and will release a more detailed analysis of the Senate bill including the primary differences between it and the House bill at a later date. In the interim, please contact your Whitley Penn tax advisor if you have any questions or require any additional information.