The U.S. House of Representatives today passed H.R. 1628, the American Health Care Act of 2017 (AHCA), by a vote of 217-212. A portion of the bill, which repeals and modifies a number of provisions of the Affordable Care Act, was previously reported by the Ways and Means Committee on a party-line vote on March 9, 2017.
The bill contains a number of tax-related provisions including measures that would:
The bill would not repeal all of the tax items originally enacted as part of the Affordable Care Act. For example, it does not include the repeal of the codification of the economic substance doctrine (section 7701(o)).
The bill will be transmitted to the U.S. Senate, where a date for consideration has not been determined. The AHCA was considered pursuant to reconciliation instructions contained in the Resolution on the Budget for Fiscal Year 2017. As a reconciliation bill, H.R. 1628 may be considered in the Senate under certain procedural rules that limit debate, thus protecting the bill from a Senate filibuster and allowing the bill to be approved by the Senate with a simple majority.
The House on January 13, 2017, passed a budget resolution instructing the Ways and Means and the House Energy and Commerce committees to draft legislation achieving a certain amount of deficit reduction over 10 years. The instructions were drafted to accommodate legislation to repeal and to replace health-care legislation enacted during the Obama Administration.
© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.