Tax and other policy-related developments
The political dynamics and unpredictability of the current Congress have so far yielded little in terms of tax legislation, but it is still possible that a tax bill could advance in late 2023 if a mustpass legislative vehicle, such as Federal Aviation Administration authorization or the fiscal 2024 National Defense Authorization Act, emerges. Among the items that might be included are modifications of some expired provisions from the Tax Cuts and Jobs Act (TCJA). These include addressing a change to Section 174 that requires five-year or 15-year research and development (R&D) amortization, depending on the location of the activity, rather than expensing; changes to the interest deduction limitation calculations under Section 163(j); and 100% expensing.
So far, however, these priorities have remained mired in a partisan standoff, which makes the path forward unclear. Congressional Democrats wish to expand the Child Tax Credit, while Republicans would aim to partially offset a tax package’s revenue losses by rolling back clean energy tax provisions from last year’s Inflation Reduction Act (IRA). Some members of both political parties in…
