The U.S. passed the Tax Cuts and Jobs Act (TCJA) in 2017. It marked the first substantial overhaul of the federal tax code since the Tax Reform Act of 1986. The aim of the TCJA was to encourage economic growth.
The TaxFoundation.org estimates the TCJA reduced federal revenues by $1.47 trillion over a 10 year period before accounting for economic growth.
The TCJA made many changes to both individual and business tax provisions; however, the most significant changes impacted the taxation of businesses. Some of the significant changes included the following:
- Qualified Business Income (QBI) deduction under Section 199A
- New limits on the deduction of interest expense
- Adding opportunity zone investment opportunities
Additional Information
Taxpayers can learn more about the TCJA and a summary of the main changes on the IRS website.