Early this morning, the House voted 215-214 to pass its version of the GOP reconciliation bill. All Democrats and GOP Reps. Thomas Massie (KY) and Warren Davidson (OH) voted no. House Freedom Caucus Chair Rep. Andy Harris (R-MD) voted present. The bill now heads to the Senate for consideration.
Of note, the final House-passed legislation makes the SWACCA-advocated pass through deduction permanent and increases it from 20% to 23%. Additionally, the bill includes SWACCA-advocated provisions reviving the favorable expensing provisions from the 2017 Tax Cuts and Jobs Act for machinery and equipment through 2029. The legislation also does not include offsets to the bill that SWACCA opposed, including a cap on the deductibility of employer-provided health insurance premiums and changes to the tax treatment of municipal bonds. The legislation also does not eliminate the SWACCA-supported bonus credit for paying prevailing wages and using apprentices on projects receiving tax credits under the Inflation Reduction Act (IRA). This victory is limited, however, because the bill proposes to phase out nearly every IRA clean energy credit between 2029 and 2031.