Congressional Republicans have successfully moved their $1.5 trillion Tax Reform legislation package through the reconciliation process, and it is on its way to the Oval Office. All that will remain is a signature by the President to reach his well-publicized goal of completing the legislation by the Christmas holiday.
Unlike the last major tax reform package enacted into law in 1986, this new tax legislation has proceeded completely along party lines. Few, if any, Democratic additions and/or deletions were incorporated into the bill, leaving the proposal almost wholly a Republican package. The final version of the Tax Cuts and Jobs Act (H.R.1), referred to as the Conference Report, was agreed to by a Congressional Conference Committee on December 15, 2017.
On December 19, 2017, the House approved the final bill by a vote of 227-203, largely along party lines. The Senate vote occurred just before 1:00 am on December 20, 2017, passing by a margin of 51-49. However, several provisions were removed from the bill approved earlier by the House because they did not meet certain technical and parliamentary procedures required by the Senate. Because both chambers must approve exactly the same bill, another House vote was required on December 20, 2017. The amended bill was approved 224-201.
The final legislation now moves to President Trump’s desk for signature into law, which is expected to be complete by year-end, at the latest. Most provisions within the bill are scheduled to take effect in 2018.
Read our Tax Alert detailing the changes included in the legislation.