Lawmakers May Vote on Making Key Provisions of the TCJA Permanent

The Tax Cuts and Jobs Act (TCJA), passed by Congress in December 2017, made several significant changes to federal taxes, both for individuals and businesses. However, many changes are set to expire over the next eight years, including full expensing as well as nearly all the individual income tax changes. Now, CNBC is reporting that lawmakers are preparing legislation that would make both those provisions permanent. This is a positive development, as making these particular provisions permanent, sooner rather than later, will avoid uncertainty created by temporary status and increase their effectiveness in encouraging long-term growth. One provision potentially under consideration for permanence is full expensing, which is one of the most significant changes of the TCJA. Full expensing allows businesses to immediately deduct the full cost of most short-life business investments, such as machinery and equipment, though not longer-lived assets like structures. Generally, under…

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