WASHINGTON, DC–The Senate Finance Committee unveiled its own tax measures on Thursday afternoon, a day earlier than many had expected.
The measure differs significantly from the version that debuted in the House of Representatives, which means some serious negotiating between the two bodies lie ahead, to say nothing of the lobbying by various interests.
There are differences in the tax rates and the treatment of certain deductions. The Senate's version of the tax bill also delays reducing the corporate tax rate to 20% until 2019.
At first glance, it is a clear there are also differences in the respective bills' approach to commercial real estate. The Senate bill, for example, maintains the deduction for interest paid for home mortgages. The bill also doesn't have a provision for carried interest, although the Senate Finance Committee is expected to look at the issue. The House of Representatives, for its part, has raised the hold period to three years from the current one year.
There are some areas of agreement. For instance, both the House and the Senate versions would allow companies to fully and immediately deduct capital expenditures on new equipment for five years.
The Senate plans to start its committee process on Monday. Meanwhile, the House Ways and Means Committee has approved its bill and the House will vote on the measure next week.
WASHINGTON, DC–The Senate Finance Committee unveiled its own tax measures on Thursday afternoon, a day earlier than many had expected.
The measure differs significantly from the version that debuted in the House of Representatives, which means some serious negotiating between the two bodies lie ahead, to say nothing of the lobbying by various interests.
There are differences in the tax rates and the treatment of certain deductions. The Senate's version of the tax bill also delays reducing the corporate tax rate to 20% until 2019.
At first glance, it is a clear there are also differences in the respective bills' approach to commercial real estate. The Senate bill, for example, maintains the deduction for interest paid for home mortgages. The bill also doesn't have a provision for carried interest, although the Senate Finance Committee is expected to look at the issue. The House of Representatives, for its part, has raised the hold period to three years from the current one year.
There are some areas of agreement. For instance, both the House and the Senate versions would allow companies to fully and immediately deduct capital expenditures on new equipment for five years.
The Senate plans to start its committee process on Monday. Meanwhile, the House Ways and Means Committee has approved its bill and the House will vote on the measure next week.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
