Election 2020: Trump vs. Biden on Corporate Tax Policy

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.


Donald Trump speaks at CPAC

-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)

President Donald Trump waves to members of the media before boarding Marine One on the South Lawn of the White House

-No proposal

-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.