The U.S. House of Representatives and Senate have released their respective versions of comprehensive tax reform packages which would lower rates and eliminate deductions in order to simplify the tax code for many companies and individuals.
The House of
Representatives and U.S. Senate each passed their versions of tax reform in
the last couple of weeks.
·
Depreciation
or expensing for capital would be enlarged to 100% in the first
year. The provision would sunset (expire) in five (5)
years. Currently, qualified recycling equipment may be expensed at 50% in
the first year.
·
IC-DISC
survived in the Senate version after it was slated to be eliminated. The
House version did not include an alienation provision.
With several policy
differences between the two proposals, both Chambers must reconcile their
bills before going to the president for his signature.
·
Both Chambers will soon vote to ‘Conference’
their respective bills together.
Why it’s important:
Scrap processing is a capital-intensive industry with many
scrap processors filing their taxes as “pass-through” entities. Lowering
tax rates, expanding expensing, and eliminating certain favorable tax
allowances could have significant
impacts on most scrap companies large and small.
Contact: Billy Johnson, (202) 662-8548.
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