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OPINION
Game-changing tax reform
The Republican reconciliation package consolidates energy, border, and tax policies, potentially reforming Section 174.
O ver the first weekend of the new year, the Republican Party finalized plans to consolidate energy, border, and tax policy issues into one comprehensive reconciliation package. This unified approach replaces the earlier strategy of splitting these issues into two separate bills and has significant implications for businesses, especially those in design and engineering.
Jordan Wilson
KEY DEVELOPMENTS. Previously, there was strong Republican support, led by new Senate Majority Leader John Thune, to pass two separate bills: 1. Energy and Border Bill. Targeted for an early win within the first 100 days. 2. TCJA 2.0 Tax Bill. Planned for later in the year to address broader tax issues. However, House Ways and Means Chairman Jason Smith opposed this two-bill approach, citing concerns about the House’s slim majority and the risk of failing to garner enough support for a second bill. Instead, the party has agreed to consolidate all measures into a single budget bill. The plan is to initiate the legislative process promptly ,
with a target to pass the bill by April. While Memorial Day may be a more realistic timeline, optimism remains high. This will be a challenging bill to pass, but there is growing confidence that progress will be made. WHY THIS MATTERS FOR DESIGN AND ENGINEERING FIRMS. The inclusion of Section 174 amortization reform in this comprehensive package is particularly noteworthy. Instead of a standalone tax bill, the 174 fix – originally expected to feature in the Wyden-Smith bill – is now part of this broader reconciliation package. SECTION 174: WHAT TO EXPECT. While many details remain uncertain, here are some early insights:
Dawson Fercho
See JORDAN WILSON & DAWSON FERCHO , page 4
THE ZWEIG LETTER JANUARY 13, 2025, ISSUE 1568
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