Congressional Republicans have struck a deal reconciling House and Senate versions of the GOP tax overhaul. In a victory for nonprofit senior living operators, it appears the final measure will retain tax-exempt private activity bonds.
Senate Majority Whip John Cornyn (R-TX) told reporters he’s “optimistic” PABs will be included in the final bill. Separately, several news organizations reported that the conference committee has approved them.
Many nonprofits use these bonds to finance major undertakings such as acquisitions, new construction and renovations. The American Health Care Association/National Center for Assisted Living and LeadingAge have been vocal critics of the House version of the tax bill, which would have terminated them at year’s end.
Overall, the Tax Cuts and Jobs Act trims the corporate tax rate to 21% from 35%, gives big tax cuts to the super wealthy and offers smaller tax breaks to middle- and lower-income earners. The latest agreement also lets taxpayers deduct high out-of-pocket medical expenses.
A full vote appears likely next week. President Trump is expected to sign the $1.5 trillion bill, which he said will provide “massive tax relief for American families and for American companies.”