Landmark Tax Reform Bill Clears Final Vote; Enactment Now Likely in 2018
December 21, 2017
The tax reform bill cleared its final procedural hurdle yesterday as the House voted again to approve the measure, marking the first fundamental changes to the U.S. tax code in more than three decades. The bill now goes to President Trump for signing, which may not happen until the first week of January.
“The changes in this bill, particularly the reduction in business tax rates, will help grow the economy and create jobs, which will benefit all Americans,” said ABA President and CEO Rob Nichols, who applauded the bill’s passage. “Thanks to this legislation, America’s banks will get to expand their role as the lifeblood of the economy by increasing financial services, investing in new and more convenient technologies, and opening more doors of opportunity for their customers.”
For technical reasons related to the budget, the president may delay signing the bill into law until the new year. This would shift the immediate accounting implications for earnings and capital to the next quarter, giving bankers more time to handle the impacts of, for example, devalued deferred tax assets. The delay, however, won’t alter the effective dates or substance of the legislation. Read highlights of the tax bill.