As the Senate debated the One Big Beautiful Bill Act—the GOP’s budget reconciliation bill—over the weekend, the American Bankers Association and the state bankers associations sent a letter in support of several key tax-related provisions in the bill. ABA and the state associations thanked lawmakers for including a narrow version of the Access to Credit for Our Rural Economy, or ACRE, Act, which would reduce the cost of credit in rural communities.
The associations also expressed their support for several tax provisions that the bill would make permanent, among them: the Section 199A deduction that levels the playing field for Subchapter S banks; the enhanced estate tax exemption that protects family-owned businesses (including banks) from having to liquidate to pay estate taxes; the New Markets Tax Credit that banks use to support growth in distressed communities; immediate expensing for R&D costs; bonus depreciation; and basing the Section 163(j) interest deductibility calculation on EBITDA instead of EBIT.
Also welcome, the associations said, were provisions to strengthen the Low-Income Housing Tax Credit and reducing the CFPB’s funding cap to promote accountability at the regulator. “We encourage Congress to promptly advance these legislative provisions to provide much needed tax relief for American taxpayers and businesses,” they wrote.
In related news, ABA’s HSA Council sent a letter to Senate leadership thanking them for including a health savings account expansion provision in the bill. Debate on the bill continued in the Senate on Sunday night following a successful procedural vote on Saturday that cleared the way for the Senate to proceed on the legislation.
