Highlights of the Tax Cuts and Jobs Act

On Dec. 22, President Donald Trump signed the Tax Cuts and Jobs Act.

Key provisions of the legislation:

  • Reduce the corporate tax rate to 21 percent
  • Eliminate the corporate alternative minimum tax
  • Allow for immediate expensing of fixed-asset purchases
  • Limit business interest expense deductions
  • Reduce the top individual income tax rate to 37 percent
  • Increase the standard deduction
  • Reduce itemized deductions, notably a $10,000 cap on state tax deductions
  • Adopt a modified territorial tax system, deemed repatriation of foreign profits, and other significant international tax changes