BANNOCKBURN, IL — IPC today expressed optimism over the prospects for US tax reform following the Senate’s approval of a sweeping bill over the weekend.
The Senate bill lowers the corporate tax rate to 20% effective Jan. 1, 2019; allows full and immediate expensing of capital investments placed in service between Sept. 27, 2017 and Dec. 31, 2022; and increases the Section 179 small business expensing cap to $1 million with a phase-out starting at $2.5 million. The approved bill also allows many small businesses organized as “pass through” companies to claim a 23% deduction for the non-wage portion of pass-through income.
Trade group noted significant differences between the bills passed by the Senate and by the House of Representatives in November will need to be ironed out before a final vote can occur. Several political obstacles still exist, but most observers believe the Congress and President Trump will overcome them by the end of 2017 or early 2018, IPC said.
“IPC believes that US tax reform is critical to long-term growth and innovation in the global electronics industry,” said John Mitchell, IPC president and CEO. “Working with our members, we have advocated for a tax reform package that cuts the corporate tax rate while keeping robust incentives for innovation. The current efforts in Congress are moving in that direction. In the days ahead, we will continue to work with our friends on Capitol Hill to advocate for our members’ interests in this legislation.”