Breaking News: Senate Finance Committee Releases Megabill
The Senate Finance Committee released their version of prospective tax legislation late yesterday. The version introduced differs from the version passed by the House in some crucial areas:
| House Version | Senate Finance Committee Version | |
| Bonus Depreciation | Reinstates 100% bonus for qualified assets placed-in-service between 1/20/2025-12/31/2029 – 5 years only | PERMANENTLY extends 100% bonus — a tremendous taxpayer win |
| Sec. 174 Amortization | Repeals mandatory amortization of Sec. 174 for 5 years — TY 2025–2029, not retroactive |
|
| Sec. 179d Deduction | No changes | Terminates deduction for property constructed more than 1 year after Bill is enacted |
| Renewable Energy Credits (ITC/CEIC) | Construction on solar/wind renewable energy systems must begin within 60 days of Bill’s enactment in order to qualify for full benefit (a tall order) |
|
| Qualified Business Income deduction | Increases QBI Deduction from 20%-23% and makes it permanent | Makes 20% QBI Deduction permanent, but no associated increase |
This is encouraging progress – but there’s a way to go before the dust settles. The Finance Committee will debate and amend this draft, then the Senate must vote, and then their final version will return to the House for Reconciliation.
While this is still a draft, the thoughtful tax advisors and taxpayers should begin planning now. We’re here to help you/your clients make the most of potential opportunities heading our way. Let’s talk soon — once legislation is finalized, you’ll want to hit the ground running.
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The Senate Finance Committee released their version of prospective tax legislation late yesterday. The version introduced differs from the version passed by the House in some crucial areas
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