State corporate tax implications of House Ways and Means Committee “Build Back Better” reconciliation bill

In brief

The House Ways and Means Committee on September 15 approved tax increase and tax relief proposals that are to be acted on by the House of Representatives as part of ‘Build Back Better’ reconciliation legislation (the bill). House and Senate tax proposals are being considered under a fiscal year 2022 budget resolution that provides reconciliation instructions for a package that currently adds up to about $3.5 trillion of spending and tax relief provisions, offset in part by corporate and individual tax increases. 

Differences between the House version of reconciliation legislation and forthcoming Senate tax proposals that are expected to be considered in coming weeks will have to be resolved before final legislation can be put to a vote in each chamber. Senate Finance Committee Chairman Ron Wyden (D-OR) and other Finance Committee Democrats have recently released a series of discussion drafts on business, international, and individual tax proposals. Congressional Democratic leaders are seeking to complete action on the legislation so it can be signed into law by President Biden before the end of this year. 

Please click here for our Insight summarizing the key business provisions of the bill. 

Outlined below is an overview of certain provisions in the bill with observations as to potential state tax impacts.