The House of Representatives passed the Build Back Better Act, H.R. 5376, on Friday, November 19. The bill has been passed for the Senate to consider. The bill includes several tax provisions:
- One year extension of Expanded Child Tax Credit
- Extending Expanded Earned Income Tax Credit
- Increasing the state and local tax deduction cap
- Expanded Premium Tax Credit
- 15% minimum tax on profits of large corporations
- 1% surcharge on corporate stock buybacks
- Limitation on interest expense deduction
- Foreign Tax credit limitation
- Country-by-country minimum tax on foreign profits of US corporations
- Disallow the exclusion of gain from the sale of small business stock for the high-income taxpayer
- Commodities, foreign currencies, and cryptoassets subject to wash-sale rules
- Amendment of Net Investment Income Tax
- Make the limitation on excess business losses permanent
- New surcharge on high-income individuals, estates, and trusts
- New Green Energy incentives
- Electric vehicle tax credits
- New limits on retirement plan contributions for high income individuals
- Increasing the Housing Credit
- Repeal requirement for written supervisory approval of IRS penalties
The bill’s fate is uncertain in the Senate, which is expected to make changes to obtain the votes needed for passage.
To learn more, visit the White House’s page detailing The Build Back Better Framework.
