President Trump Signs Tax Reform Legislation

President Trump signed The Tax Cuts & Jobs Act (H.R. 1), on December 22 preserving the Housing Credit, private activity Housing Bonds, the 2018 and 2019 new markets tax credit (NMTC) allocation application rounds, a revised historic tax credit (HTC) and existing phase-downs for the renewable energy investment tax credit (ITC) and production tax credit (PTC). It eliminated the 10% non-historic credit and requires the 20% HTC be taken over 5 years. It also reduces the corporate tax rate to 21%, allows a 20% deduction for pass-through companies, eliminates the corporate alternative minimum tax, sets a $750,000 cap for mortgage interest deduction and a $10,000 limit on state and local tax deduction.

The legislation goes into effect on January 1, 2018.

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