No Guarantees for Year-end Tax Legislation

Originally published on September 20, 2023, by Aquiles Suarez for NAIOP.

Usually, at this time of year, members of Congress and advocates for industry are strategizing on how best to position their tax priorities for inclusion in a year-end tax package. In many instances, success has depended on a tax title becoming part of a massive, must-pass omnibus spending bill that comes together in December, when senators and representatives desperately want to get home for the holidays.

But this time could be different. While fighting in Congress over spending bills is nothing new, the heated politics surrounding this year’s federal government funding battle, and the resulting animosity if a government shutdown does materialize, could linger well beyond October and make reaching an agreement on a tax bill all the more challenging.

The Tax Cuts and Jobs Act (TCJA), which was passed in 2017 during the Trump administration, added various tax credits and deductions and made changes to depreciation, expensing, and other tax provisions that affect businesses. Many of these provisions have expired or are expiring in the coming years, or are being gradually phased down. Businesses would like to see them extended. Others are tax provisions that the business community wants to change. Tax provisions expiring in 2024 or 2025 are less likely to be dealt with this year, but House Ways and Means Chairman Jason Smith (R-MO) has introduced legislation restoring and extending provisions that have expired this year and revising some unexpired provisions based on industry input.

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