Legal Alert: House confirms favorable modifications to three key business tax provisions
On May 12, 2025, the Republicans on the House Committee on Ways and Means released a draft bill showing their tax plan for the budget reconciliation legislation. The legislation will likely undergo significant changes as it works its way through the broader House membership and Senate. Among the myriad of new and revised provisions, the bill contains favorable updates to three key business tax provisions from 2017’s Tax Cuts and Jobs Act (TCJA). More specifically, the bill as currently drafted includes an extension of 100% bonus depreciation, a return to full, immediate expensing for domestic research and experimental expenditures, and adjustments to the business interest expense limitation taking into consideration EBITDA, as opposed to merely EBIT. While the final content of this bill is expected to change, in this initial draft, taxpayers should appreciate the efforts made by the House to modify these three key business tax provisions favorably.
Read the full legal alert here.