Our elected officials at the national level are currently drafting new federal tax code. Just last week, the U.S. House released their first draft of the Tax Cuts and Jobs Act (HR 1), and the bill could have a varying impact on businesses and individuals alike. Below is a brief summary of changes HR 1 presents.
At the Quad Cities Chamber, we are focused on economic growth and community prosperity. With that, a concern we have within the bill is that it eliminates Federal Historic Preservation Tax Incentives (historic tax credits) and the New Market Tax Credit. These programs have proven necessary and successful in growing the Quad Cities economy and enhancing our community. While many credits can be replaced by lower tax rates, the investment of the FHTC and NMTC cannot.
We have submitted a letter to our six-member congressional delegation asking them to ensure both program are maintained without cuts. Please take a few minutes to contact your senators and representatives, and ask them to ensure the historic tax credit and New Market Tax Credit programs maintained without cuts in any tax reform legislation. If you are able, we also encourage you to let them know how the bill will impact you and your business.
Here is a sample message:
I’m calling (or writing) to ask for your support to maintain and not cut the Federal Historic Preservation Tax Incentive and New Market Tax Credit programs as part of any federal tax legislation. Both programs are vital to redeveloping the Quad Cities and growing our economy. These programs have transformed our downtowns, spurred hundreds-of-millions of dollars of growth, created thousands of jobs, and grown our tax base. I am counting on you to maintain and not cut the historic tax credits and New Market Tax Credit, so the Quad Cities can continue to grow and develop.
(Include how the bill impacts you, if possible.)
|Sen. Chuck Grassley||Sen. Joni Ernst||Rep. Dave Loebsack|
|Sen. Dick Durbin||Sen. Tammy Duckworth||Rep. Cheri Bustos|
The Tax Cuts and Jobs Act would reduce corporate (C Corp) tax rate to 20%, pass-through (S Corp) to 25%, eliminates or limits most business tax credits and deductions, and creates a territorial system for domestic corporations on foreign income. The bill also makes a number of changes to personal income tax, including: fewer brackets, major changes to a number of deductions and credits, and eventual elimination of the alternative minimum tax and estate tax. The proposal would increase the federal deficit by $1.5 trillion over the next decade.