Partial Tax Bill Released, Committee Markup Set

The House Ways and Means Committee released a portion of its draft tax legislation late Friday, focusing primarily on the extension of provisions from the 2017 Tax Cuts and Jobs Act. This release represents only a segment of the full legislative package. 

Additional details or a more comprehensive version of the bill are expected over the weekend or early next week. At this time, credit unions are not referenced in the draft text. 

The Committee has also officially scheduled a markup session for the legislation on Tuesday at 2 p.m. More details are likely to emerge about the bill at that point, but going into the hearing it is clear the draft legislation would: 

• Increase the pass-through deduction for qualified business income to 22% from 20%. 
• Raise the estate and gift tax exemption to $15 million and indexes it for inflation. 
• Extend current lower rates on foreign profits for multinational companies. 
• Extend the current individual income tax rate structure, which means not raising the top individual rate, which many small business owners pay, as proposed by the President.  
• Not raise the state and local tax deduction, which currently is set at $10,000 for individual taxpayers. 
• Increase the child tax credit from $1,000 to $2,500 through 2028 and to $2,000 in subsequent years and requires Social Security numbers for claiming it. 

CrossState and credit unions are in Washington, D.C., today and tomorrow meeting with legislative offices and monitoring Committee. CrossState will provide timely updates on any developments that could impact credit unions.