House Passes Build Back Better Bill

By Alan S. Kufeld, Partner, Leo Parmegiani, Partner, and Christopher Migliaccio, Senior Manager

The House of Representatives passed the Build Back Better (BBB) reconciliation bill (H.R. 5376) on Friday, November 19, 2021. It currently includes many individual, business and international tax increase provisions. We previously provided a summary of the provisions of the bill. The bill, as passed, appears to match the version of the bill we reported on as it relates to the tax provisions, except that the SALT cap is increased to $80,000 instead of $72,500.

Note that the BBB is distinct from the Infrastructure Investment and Jobs Act, which was signed by President Biden this week. That legislation lacks significant tax consequences, outside of the early end to the Employee Retention Credit and some changes to reporting of cryptocurrency investments.

Next Steps

In all likelihood, there are still significant negotiations to come before the bill reaches a vote in the Senate sometime after Thanksgiving. Therefore, our recommendation continues to be to monitor tax policy and be ready to act if needed.

PKF O’Connor Davies is monitoring the situation in Washington, DC and, as it changes, we will keep you informed.