NIADA December Monthly Report Inbox

BBB- Senate Consideration
As you are aware from all the press reports, Congress is in recess, having adjourned without
Senate action on the BBB. The reasons – Senator Manchin is opposed to the bill because of its
impact on the deficit and inflation and because of the inclusion of various programs such as paid
family and sick leave, child care credit, climate control, energy incentives and various tax
increases, all included in the House-passed bill; Senator Sinema is opposed but has not revealed
her specific concerns (except, she says, to the President); and Senator Sanders wants more for
various social services programs. The support of all three is critical as the Democrats need 50
votes for passage (with no Republicans indicating support). Notwithstanding the reports that the
bill is dead, the President still believes a deal can be struck and discussions/negotiations are
ongoing.
On Dec. 16, the Senate Environment and Public Works Committee released its title to the
Senate’s version of the BBB, if that materializes. Included is $690M for GSA clean fleets.
The Senate Commerce Committee also released its title. No motor vehicle provisions are
included.
Highlights of the Senate Finance proposed tax title are:
State and Local Deductions
One thing that is not in the Senate version is any change in the current (through 2025) cap on
itemized deductions of state and local taxes under Sec. 164(b). The House version would
increase the current $10,000 limit to $80,000 ($40,000 for married taxpayers filing separately
and trusts and estates).
Corporate minimum tax
Like the House version, the Senate text includes a 15% minimum tax on profits of large
corporations. Corporations (other than S corporations, regulated investment companies, or real
estate investment trusts) with more than $1 billion in average annual adjusted financial statement
income for the three-tax-year period ending with the tax year would be liable for a tax of 15% of
adjusted financial statement income for the tax year (over the corporate adjusted minimum tax
foreign tax credit for the tax year).
Child tax credit
Also like the House version, the Senate text extends the 2021 expansion of the child tax credit
through 2022 and also extends advance payments of the credit monthly through 2022. It also
would extend the greater refundability of the credit beyond 2022.