The president today signed into law a short-term government spending and budget bill—the Bipartisan Budget Act of 2018 (H.R. 1892). The legislation includes certain tax-related measures and extends retroactively through 2017, certain other tax measures that had expired at the end of 2016.
The new law provides for spending levels and budgetary matters, suspends the debt ceiling through March 2019, and provides certain disaster relief.
Read text of the legislation [PDF 699 KB] (250 pages)
The Senate, in the early morning hours today, passed 71 to 28, a continuing resolution to provide funding for the federal government through March 23, 2018, after amending the legislation to add a bipartisan agreement governing spending levels and a number of related budgetary matters for fiscal years 2018 and 2019.
The House shortly thereafter passed the bill by a vote of 240 to 186, and the legislation was then quickly sent to the president who signed it this morning.
The new law includes certain tax-related provisions—including a number of measures that originally were included in various versions of the tax bill that ultimately became Pub. L. No. 115-97 (previously known as the Tax Cut and Jobs Act and signed into law on December 22, 2017) but had been removed prior to final passage of the new tax law for a variety of reasons.
The new law also generally extends through 2017 some 33 “expiring provisions” (or “tax extenders”) that had expired December 31, 2016.
Read a summary of the tax measures in TaxNewsFlash-Legislative Updates
The IRS on February 9, 2018, released a statement concerning the retroactive extension of the tax extenders:
The IRS is reviewing the legislation signed Feb. 9 that retroactively extended and modified numerous tax provisions covering 2017. We are assessing these significant changes in the tax law and beginning to determine next steps. The IRS will provide additional information as quickly as possible for affected taxpayers and the tax community.
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