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Archive for the ‘Federal legislation’ Category
This Week’s #AuroraChamber Newsletter
Monday, March 11th, 2019#EconomicPulse, Business Registration, More from #AuroraChamber
Tuesday, January 22nd, 2019
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Henning Graduates from U.S. Chamber Foundation Education and Workforce Fellowship Program
Tuesday, January 22nd, 2019Fellowship Provided State and Local Chambers with Opportunities to Engage Nationally on Critical Education and Workforce Issues
WASHINGTON, D.C. – The U.S. Chamber of Commerce Foundation today announced Joseph B. Henning, IOM, CAE, president and CEO of the Aurora Regional Chamber of Commerce graduated from its premier business leadership program. The inaugural Business Leads Fellowship Program trained and equipped leaders from state and local chambers of commerce with resources, access to experts, and a network of peers to build their capacity to address the most pressing education and workforce challenges.
“The Aurora Chamber has been involved in education attainment and workforce development for many years,” Henning explains. “This Fellowship gave me the opportunity to not only learn from national experts, but also to share and gain information from other chamber professionals who are involved.”
“As clearly displayed throughout this program, state and local leaders know better than anyone the critical link between education and economic development,” says Cheryl Oldham, senior vice president of the Center for Education and Workforce. “Not only did the Fellows gain a network of peers and experts in the field, the program is designed to help these leaders find opportunities to develop initiatives that will continue to advance the growth of their local economy and put education policy into practice.”
Following a competitive application and selection process, Henning was selected along with 34 other state and local chamber executives to participate in the inaugural class. The four-month program, which ended this week, covered the entire talent pipeline, including early childhood education, K-12, higher education, and workforce development.
Upon completion, Business Leads Fellows join the U.S. Chamber of Commerce Foundation’s dedicated network of 200 chambers of commerce and statewide associations from around the nation who regularly engage on education and workforce initiatives.
Given the overwhelming interest in the program, the U.S. Chamber of Commerce Foundation will host a second cohort in spring 2019.
For a full list of participants in the Business Leads inaugural class, visit the U.S. Chamber Foundation website.
Thank you, #AuroraChamber members….
Monday, November 19th, 2018
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2018 Midterm Election Recap
Friday, November 16th, 2018This month, saw record turnout for a mid-term election. As of this posting, there were still a number of national (and local) races undecided.
U.S. Congress
Sixth: Sean Casten (D-Downers Grove) defeated Peter Roskam* (R-Wheaton)
Eleventh: Bill Foster* (D-Naperville) defeated Nick Stella (R-Darien)
Fourteenth: Lauren Underwood (D-Naperville) defeated Randy Hultgren (R-Plano)
Federal Take Aways
- Democrats took control of the U.S. House while Republicans maintained (and expanded) their control of the Senate.
- Federal issues expected to be priorities this term include:
- Immigration
- Infrastructure and Transportation
- Affordable Care Act
- Job Creation
State Officers
Governor: J.B. Pritzker (D-Chicago) defeated Bruce Rauner* (R-Winnetka)
Attorney General: Kwame Raoul (D-Chicago) defeated Erika Harold (R-Urbana)
Secretary of State: Jesse White* (D-Chicago) defeated Jason Helland (R-Mazon)
Comptroller: Susana Mendoza* (D-Chicago) defeated Darlene Senger (R-Naperville)
Treasurer: Michael Frerichs* (D-Champaign) defeated Jim Dodge (R-Orland Park)
State Senate
District 21: Laura Ellman (D-Naperville) defeated Michael Connelly (R-Lisle)
District 33: Donald DeWitte (R-St. Charles) defeated Nancy Zettler (D-Algonquin)
District 35: Dave Syverson (R-Rockford)
District 38: Sue Rezin* (R-Morris) defeated Heidi Henry (D-Marseilles)
District 42: Linda Holmes* (D-Aurora)
State House
District 41: Grant Wehrli* (R-Naperville) defeated Val Montgomery (D-Naperville)
District 49: Karina Villa (D-West Chicago) defeated Tonia Khouri (R-Aurora)
District 50: Keith Wheeler* (R-Oswego) defeated James Leslie (D-Aurora)
District 65: Dan Ugaste (R-Geneva) defeated Richard Johnson (D-Elgin)
District 70: Jeff Keicher* (R-Sycamore) defeated Paul Stoddard (D-DeKalb)
District 75: David Welter* (R-Morris)
District 83: Linda Chapa LaVia* (D-Aurora)
District 84: Stephanie Kifowit (D-Oswego) defeated Patty Smith (R-Aurora)
District 97: Mark Batinick* (R-Plainfield) defeated Mica Freeman (D-Plainfield)
State Take Aways
- Democrats now have firm control of every level of state government. This is a main concern with redistricting being done following the 2020 Census and the reduction of one (perhaps two) Congressional districts.
- Speaker Madigan saw his majority increase from 67-51) to a super-majority of 73-45 (71 constitutes a super-majority). The House has never held more than 72 seats. This is important to remember as it takes 71 votes to put a constitutional amendment (e.g., Fair Tax) on the ballot and to override a governor’s veto.
- Senate President Cullerton, who already had a super-majority of 37 (one more than needed), saw his super-majority increase. The number is not known as there are still a few unclear. Races of Senators Chris Nybo (down 286 votes) and Mike Connelly (up 12 votes) are still unofficial and awaiting mail-in ballots.
- Expected issues for consideration include:
- Gaming Expansion (including sports gambling)
- Minimum Wage Increase
- Recreational Marijuana Legalization
- Infrastructure
- Fair Tax Amendment
- Gas Tax/Mileage Tax
- Healthcare Sterilization (see Sterigenics and can also impact hospitals and other medical centers that use ethylene oxide to sterilize medical devices)
#AuroraChamber News: Election Day Tomorrow — VOTE
Monday, November 5th, 2018
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Highlights of Tax Reform for Businesses
Friday, October 12th, 2018The Tax Cuts and Jobs Act included a few dozen tax law changes that affect businesses. Most of the changes in the new law take effect in 2018 and will affect tax returns filed in 2019.
This fact sheet summarizes some of the changes for businesses and gives resources to help business owners find more details.
Business taxpayers should re-estimate estimated tax payments
The Tax Cuts and Jobs Act changed the way tax is calculated for most taxpayers, including those with substantial income not subject to withholding, such as small business owners and self-employed individuals. Among other reforms, the new law changed the tax rates and brackets, revised business expense deductions, increased the standard deduction, removed personal exemptions, increased the child tax credit and limited or discontinued certain deductions. As a result, many taxpayers may need to raise or lower the amount of tax they pay each quarter through the estimated tax system.
Because of the far-reaching tax changes taking effect this year, the IRS urges all employees, including those with other sources of income, to perform a Paycheck Checkup now. Doing so now will help avoid an unexpected year-end tax bill and possibly a penalty. The easiest way to do this is to use the Withholding Calculator available on IRS.gov.
A companion publication, Publication 505, Tax Withholding and Estimated Tax, has additional details, including worksheets and examples, which can help taxpayers determine whether they should pay estimated tax. Some of those groups that should consult Publication 505 are those who have dividend or capital gains income, owe alternative minimum tax or have other special situations.
Form 1040-ES can also help taxpayers figure these payments simply and accurately. The estimated tax package includes a quick rundown of key tax changes, income tax rate schedules for 2018 and a useful worksheet for figuring the right amount to pay.
More information about tax withholding and estimated tax can be found on the IRS’s Pay As You Go web page.
New or revised deductions for businesses
- Qualified business income. Many taxpayers may be eligible for a new deduction for qualified business income (QBI) from a qualified trade or business operated directly or through a pass-through entity.
The deduction has two components.
1) Eligible taxpayers may be entitled to deduct up to 20 percent of their qualified business income (QBI) from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust or estate. For taxpayers with taxable income that exceeds $315,000 for a married couple filing a joint return, or $157,500 for all other taxpayers, the deduction is subject to limitations such as the type of trade or business, the taxpayer’s taxable income, the amount of W-2 wages paid by the qualified trade or business and the unadjusted basis immediately after acquisition (UBIA) of qualified property held by the trade or business. Income earned through a C corporation or by providing services as an employee is not eligible for the deduction.
2) Eligible taxpayers may be entitled to deduct 20 percent of their combined qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. This component of the section 199A deduction is not limited by W-2 wages or the UBIA of qualified property.
The sum of these two amounts is referred to as the combined qualified business income amount. Generally, this deduction is the lesser of the combined qualified business income amount and an amount equal to 20 percent of the taxable income minus the taxpayer’s net capital gain.
The deduction is available for tax years beginning after Dec. 31, 2017. Most eligible taxpayers can claim it for the first time when they file their 2018 federal income tax return in 2019. The deduction is available regardless of whether an individual itemizes their deductions on Schedule A or takes the standard deduction.
For more information, see the FAQs on the Deduction for Qualified Business Income.
- Meal and entertainment expenses. The new law generally eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. However, under the new law, taxpayers can continue to deduct 50 percent of the cost of business meals if the taxpayer – or an employee of the taxpayer – is present and the food or beverages are not considered lavish or extravagant. The meals may be provided to a current or potential business customer, client, consultant or similar business contact. Food and beverages that are purchased or consumed during entertainment events will not be considered entertainment if purchased separately from the entertainment, or if the cost is stated separately from the entertainment on one or more bills, invoices or receipts.
- Fines and penalties paid to a government. Taxpayers can’t deduct certain fines and penalties for violation of the law. See Notice 2018-23 for more details.
- Payments made in sexual harassment or sexual abuse cases. Taxpayers can’t deduct certain payments made in sexual harassment or sexual abuse cases.
- Payments under state or local tax credit programs. Business taxpayers who make business-related payments to charities or government entities for which the taxpayers receive state or local tax credits can generally deduct the payments as business expenses.
- The business expense deduction is available to any business taxpayer, regardless of whether it’s doing business as a sole proprietor, partnership or corporation, as long as the payment qualifies as an ordinary and necessary business expense.
Changes to fringe benefit deductions
There are important changes to fringe benefit deductions that employers need to know about. These changes can affect a business’s bottom line and its employee’ deductions.
- Transportation fringe benefits. The new law disallows deductions for expenses associated with qualified transportation fringe benefits or expenses incurred providing transportation for commuting (except as necessary for employee safety).
- Bicycle commuting reimbursements. Under the new tax law, employers can deduct qualified bicycle commuting reimbursements as a business expense for 2018 through 2025. The new tax law suspends the exclusion of qualified bicycle commuting reimbursements from an employee’s income for 2018 through 2025. Employers must now include these reimbursements in the employee’s wages.
- Moving expenses. Employers must now include moving expense reimbursements in employees’ wages. The new tax law suspends the former exclusion for qualified moving expense reimbursements. One exception: Active duty members of the U.S. Armed Forces can still exclude moving expenses from their income. Notice 2018-75 provides guidance on 2018 reimbursements for employees’ 2017 moves. Generally, reimbursements in this situation are not taxed.
- Achievement awards. Special rules allow an employee to exclude achievement awards from wages if the awards are tangible personal property. An employer also may deduct awards that are tangible personal property, subject to certain deduction limits. The new law clarifies the definition of tangible personal property.
See the Employer Update on IRS.gov for more details.
Changes to depreciation and expensing for businesses
The Tax Cuts and Job Act changed some laws regarding depreciation and expensing. These changes can affect a business’s tax situation. Here are the highlights:
- Businesses can immediately expense more under the new law.
- Temporary 100 percent expensing for certain business assets (first year bonus depreciation).
- Changes to depreciation limitations on luxury automobiles and personal use property.
- The treatment of certain farm property changed.
- Applicable recovery period for real property.
- Use of alternative depreciation system for farming businesses.
More details are in FS-2018-9, New rules and limitations for depreciation and expensing under the Tax Cuts and Jobs Act.
New and revised tax credits for businesses
- New employer credit for paid family and medical leave. This general business credit is a percentage of the amount of wages paid to a qualifying employee while on family and medical leave for up to 12 weeks per taxable year. The credit is generally effective for wages paid in taxable years beginning after Dec. 31, 2017, and before Jan. 1, 2020. For more information, see the Frequently Asked Questions about the Employer Credit for Paid Family and Medical Leave and Notice 2018-71.
- Rehabilitation tax credit. The new law affects the rehabilitation tax credit for amounts that taxpayers pay or incur for qualified expenditures after Dec. 31, 2017. It repeals the 10 percent credit for buildings placed in service before 1936. It keeps the 20 percent credit for expenses to rehabilitate a certified historic structure, but requires taxpayers to prorate the 20 percent credit over five years instead of in the year they placed the building into service.
A transition rule gives relief to owners of either a certified historic structure or a pre-1936 building by allowing owners to use the prior law if the project meets these conditions:
- The taxpayer owns or leases the building on Jan. 1, 2018, and at all times thereafter, and
- The 24- or 60-month period selected for the substantial rehabilitation test begins by June 20, 2018.
Accounting methods
Small businesses. The new tax law allows small business taxpayers with average annual gross receipts of $25 million or less in the prior three-year period to use the cash method of accounting. The law expands the number of small business taxpayers eligible to use the cash method of accounting and also exempts these small businesses from certain accounting rules for inventories, cost capitalization and long-term contracts. As a result, more small business taxpayers are allowed to change to the cash method of accounting starting after Dec. 31, 2017.
S corporation to C corporation. An eligible terminated S corporation that is required to change from the overall cash method to an overall accrual method of accounting because of a revocation of its S corporation election that makes this method change for the C corporation’s first taxable year after such revocation must use a 6-year section 481(a) adjustment period. See Revenue Procedure 2018-44 for details.
Like-kind exchanges. Under the new law, deferral of gain or loss now applies only to exchanges of real property and not to exchanges of personal or intangible property. An exchange of real property held primarily for sale still does not qualify as a like-kind exchange. To qualify as a like-kind exchange, a taxpayer must hold the real property for productive use in a trade or business or for investment. Real property held for sale does not qualify. A transition rule in the new law provides that an exchange of personal or intangible property may qualify as a like kind exchange if the taxpayer began the exchange by transferring property or receiving replacement property on or before Dec. 31, 2017. See more details on the Like-Kind Exchanges – Real Estate Tax Tips page on IRS.gov.
International business. The Tax Cuts and Jobs Act changed some things related to international businesses. Learn more on the tax reform page for international taxpayers and businesses.
Wrongful IRS levy. Individuals and businesses have more time to file an administrative claim or to bring a civil action for wrongful levy or seizure. The new law extended the time limit for filing an administrative claim and for bringing a suit for wrongful levy from nine months to two years. For more information, see news release 2018-126.
#AuroraChamber Announces New Programs, Members
Tuesday, September 18th, 2018
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An Estimated Tax Payment in 2018 Could Help Avoid a Penalty in 2019
Monday, September 17th, 2018Taxes must be paid as you earn or receive income during the year, either through withholding, estimated tax payments or a combination of both. A Paycheck Checkup using the IRS Withholding Calculator can help you see if you need to make an additional payment to avoid an unexpected tax bill or underpayment penalty when you file your tax return next year.
You may need to make estimated payments if you:
- have multiple jobs—especially if you don’t have each employer withhold taxes
- are self-employed or an independent contractor
- are a representative of a direct-sales or in-home-sales company
- participate in sharing economy activities where you are not working as an employee
- receive pension income
Visit IRS,gov to learn more.
Ways and Means to Vote on Tax 2.0 Package
Friday, September 14th, 2018On Sept. 13, the House Ways and Means Committee passed its “Tax 2.0” package that would make permanent already-passed tax changes for individuals and small businesses and make it easier for families to save for retirement.
Ways and Means Committee Chairman Kevin Brady (R-TX) said the three bills that make up “Tax 2.0” collectively build on the economic success of last year’s Tax Cuts and Jobs Act.
Chairman Brady noted that Tax Reform 2.0 is the Committee’s commitment to ensuring our tax code remains the most competitive in the world:
“We must keep building off the momentum from last year’s tax reform to ensure our economy keeps booming. That’s why we’re here today to change the culture of Washington – from one that waits an entire generation to fix a broken tax code to one that keeps our code ahead of the pack and the best in the world.”
“So, while Tax Reform 1.0 was about changing the trajectory of the economy, Tax Reform 2.0 is about changing the culture in Washington. That starts with today’s important update to our code.”
According to ASAE: The Center for Association Leadership, the first bill in the package (H.R. 6760) makes permanent the cuts to individual tax rates that took effect this year and locks in other changes that are set to expire at the end of 2025. That includes the $10,000 cap on state and local tax deductions, which raised an outcry in certain high-tax states like California, New York, and New Jersey. Democrats in those states have made the SALT cap a campaign issue, arguing that the provision will cost their constituents billions in annual tax deductions.
The second bill in Tax 2.0 (H.R. 6757) focuses on changes to retirement and education accounts. The bill removes the age limit on individual retirement account contributions would exempt people with less than $50,000 in their retirement accounts from taking required minimum distributions.
The third bill in the package (H.R. 6756) would let new businesses deduct up to $20,000 in start-up expenses in the year they are incurred as long as they meet certain qualifications.
Speaker Paul Ryan (R-WI) has said he wants a floor vote on Tax 2.0 by the end of the month. Even if the legislation passes the House, however, it’s expected to stall in the Senate.
The Joint Committee on Taxation estimated the cost of the Tax 2.0 package at $657 billion. That’s on top of the $1.5 trillion cost of the first round of tax cuts over the next decade.