The American Bankers Association (ABA) has expressed approval for the recent budget reconciliation package passed by Senate Majority Leader Thune, Speaker Johnson, and the House and Senate GOP conferences. The ABA believes that this package will enable banks to better serve their customers and communities.
According to the ABA, the package includes several provisions that they support. These include a modified ACRE Act aimed at reducing credit costs in rural areas and making permanent various tax provisions. These tax provisions are seen as crucial for economic growth and include the Section 199A pass-through deduction, enhanced estate tax exemption, New Markets Tax Credit, immediate expensing for R&D costs, bonus depreciation, and adjustments to the Section 163(j) interest deductibility calculation.
The ABA highlights that having certainty about the tax code will allow banks of all sizes to provide more support to the U.S. economy through their workforce of over two million employees.
Furthermore, the ABA welcomes measures within the package designed to strengthen the Low-Income Housing Tax Credit. They also appreciate efforts to increase oversight and accountability of CFPB funding and expand access to Health Savings Accounts (HSAs), which can help Americans manage rising healthcare costs.
The ABA anticipates President Trump signing these provisions into law soon.
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