Tax reform conference committee reaches agreement | KPMG | US
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Tax reform conference committee reaches agreement, bill text is released

U.S. tax reform

The U.S. House and Senate Republican conferees for H.R. 1, the “Tax Cuts and Jobs Act,” have reached an agreement on a conference report that reconciles differences between the versions of the tax reform bill passed by the House and passed by the Senate.

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Read text of the conference report [PDF 4.25 MB] (1097 pages)

Read a joint explanatory statement [PDF 1.77 MB] (570 pages) of the conference agreement

 

A summary [PDF 160 KB] of highlights of the conference agreement reveals that it would:

  • Reduce the corporate income tax rate to 21%, beginning January 1, 2018
  • Provide a 20% tax deduction against qualifying income of S corporations, partnerships, limited liability corporations (LLCs), and sole proprietorships
  • Allow businesses an immediate write-off of the full cost of new equipment
  • Preserve the research and development (R&D) tax credit
  • Repeal the corporate alternative minimum tax (AMT)
  • Revise the current “worldwide” system of multinational taxation
  • Reduce individual income tax rates, and establish new rates at 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37%
  • Increase the standard deduction to $24,000 for married filing jointly and $12,700 for single taxpayers
  • Allow individual taxpayers to deduct up to $10,000 of state and local taxes (sales, income, and property taxes)
  • Allow home mortgage interest deduction up to $750,000
  • Repeal the individual healthcare mandate penalty 

 

KPMG will provide an analysis and observations of the conference agreement in a future report.

The chairman of the conference committee, Kevin Brady (the Ways and Means chairman) has indicated that he anticipates that the House and Senate would vote on the agreement next week.

 

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