HR-137 : Still Just a Bill

The TCJA Permanency Act, also known as H.R. 137, proposes to make permanent several provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 that are currently set to expire.

The main provisions of the bill include:

• Individual Tax Rates: Makes permanent the individual income tax rates established by the TCJA.
• Qualified Business Income Deduction: Eliminates the expiration date for the deduction for qualified business income of pass-through entities.
• Limitation on Losses: Modifies the rules regarding excess business losses for taxpayers other than corporations, making them permanent.
• Standard Deduction: Sets the increased standard deduction amounts from the TCJA permanently.
• Child Tax Credit: Establishes a permanent $2,000 child tax credit, along with a $500 credit for other qualifying dependents.
• Charitable Contribution Limitations: Modifies and makes permanent the increased limitations for certain charitable contributions.
• ABLE Accounts: Expands and makes permanent certain benefits related to ABLE (Achieving a Better Life Experience) accounts for individuals with disabilities.
• Sinai Peninsula: Provides certain tax benefits to individuals performing services in the Sinai Peninsula of Egypt.
• Student Loan Discharges: Modifies the tax treatment of student loan discharges due to death or disability, while setting a new sunset date for the special rule of certain loans.
• 529 Accounts: Broadens the qualified expenses for 529 education savings accounts to include homeschool expenses.
• Personal Exemptions: Repeals the deduction for personal exemptions.
• State and Local Taxes (SALT): Limits the deduction for state and local taxes.
• Home Mortgage Interest: Modifies the rules regarding the deduction for qualified residence interest, limiting the amount of acquisition indebtedness.
• Casualty Losses: Modifies the deduction for personal casualty losses, limiting it to losses attributable to federally declared disasters.
• Miscellaneous Itemized Deductions: Eliminates miscellaneous itemized deductions.
• Overall Itemized Deduction Limitation: Repeals the overall limitation on itemized deductions.
• Bicycle Commuting Reimbursement: Terminates the exclusion for qualified bicycle commuting reimbursements.
• Moving Expenses: Limits the qualified moving expense reimbursement exclusion and deduction for moving expenses to members of the Armed Forces.
• Wagering Losses: Modifies the limitation on wagering losses.
• Estate and Gift Tax Exemption: Increases the estate and gift tax exemption amount.
• Alternative Minimum Tax (AMT): Increases the exemption for the Alternative Minimum Tax for individuals.

In short, this bill aims to make the individual and small business tax changes enacted in 2017 as part of the Tax Cuts and Jobs Act permanent, which would otherwise expire.