The Democratic and Republican conventions have put a spotlight on this fall’s presidential election, and with that in mind, Top 10 Firm Crowe LLP has released this handy at-a-glance summary of the two candidates’ proposed policies for corporate taxes. (See the firm’s summary we shared of their tax policies for individuals .)
-Lower the corporate tax rate from 21% to 20%.
-Raise the corporate tax rate from 21% to 28%.
-Require C corporations with over $100 million in book income to pay the greater of normal corporate tax liability or 15% of book income.
DEDUCTIONS, DEFERRALS, AND AMORTIZATION
-Expand the meal and entertainment expense deduction.
-Extend the 100% bonus depreciation that is scheduled to phase out beginning in 2023.
-Retain the current deduction for research and development that is scheduled to expire after 2021.
-Establish tax deductions for small businesses, restaurants, and the tourism industry as they look to rebuild after the pandemic
-Eliminate all deductions for expenses to advertise prescription drugs.
-Increase the depreciable life of the rental real estate.
-Eliminate the deferral of capital gains from like-kind exchanges for real estate.
-Establish incentives for opportunity zone funds to partner with nonprofit or community-oriented organizations, and jointly produce a community benefit plan for each investment. Require reporting, public disclosure of community impact, and Treasury oversight.
-Enact a 10.5% tax rate for companies that bring back to the U.S. supply chains for medicines and related products.
-Double the global intangible low-taxed income rate to 21%.
-Impose sanctions on countries that “facilitate illegal corporate tax avoidance and engage in harmful tax competition.”
TAX CREDITS (other than individual, energy, and health care)
-Expand the new markets tax credit and make it permanent.
-Establish the manufacturing communities tax credit, and fund the credit for five years to reduce the tax liability of businesses that experience workforce layoffs or a major government institution closure.
-Expand the work opportunity tax credit to include military spouses.
-Expand the low-income housing tax credit.
-Establish a workplace childcare facility tax credit of up to 50% of an employer’s first $1 million in costs for qualified on-site childcare.