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House Lawmakers Introduce Bill to Fix ‘Retail Glitch’ in Tax Law

A pair of lawmakers has introduced bipartisan legislation to make a technical correction in the Tax Cuts and Jobs Act that has kept many stores and restaurants from renovating their facilities, after similar legislation was introduced last week in the Senate.

The Tax Cuts and Jobs Act 2017 allowed businesses to immediately write off the costs associated with improving facilities, instead of having to depreciate the expenses over 15 years. An inadvertent drafting error required restaurants, retailers and other leaseholders to instead write off the expenses over a much longer period of 39 years, which has made the renovations more costly and stymied investment…

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Tax break on repatriated foreign earnings may spur R&D

A new academic study suggests that the provisions in the Tax Cuts and Jobs Act encouraging companies to repatriate their foreign earnings back to the U.S. at a reduced tax rate could lead to more spending on research and development.

The study looked at an earlier corporate tax holiday in 2004 from the American Jobs Creation Act, which led to a wave of stock buybacks and corporate dividends rather than the number of jobs originally envisioned. However, the study found that the law did produce more spending on research and development. The study…

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Federal Spending Bill Includes Tax Provisions

The Consolidated Appropriations Act, 2018, H.R. 1625, which is the $1.3 trillion spending bill that Congress passed on Friday, contains a few tax-related provisions, including funding for the IRS and technical corrections to various recent pieces of tax legislation.

It also amends the centralized partnership audit regime and changes the Sec. 199A deduction for farmers who sell grain to agricultural cooperatives. The bill passed the House of Representatives on Thursday by a 256–167 vote. It passed the Senate early Friday on a 65–32 vote. President…

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Senators Ask IRS To Issue Guidance On R&D Tax Credit

Law360, New York (July 20, 2016, 8:15 PM EDT) — A trio of senators on Tuesday asked the Internal Revenue Service and the U.S. Department of the Treasury to “use common sense” in administering new provisions of a law that expands access to a research and development tax credit to startups and small businesses.

In a letter to IRS and Treasury officials, U.S. Senators Chris Coons, D-Del., Pat Roberts, R-Kan., and Chuck Schumer, D-N.Y., called on the IRS to “carefully issue” guidance to ensure the smooth and effective implementation of so-called R&D credits for startup companies…

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