Washington, D.C. – House Budget Chairman Jodey Arrington (TX-19) issued the following statement after the extension of Trump Tax Cuts, alongside several of his legislative priorities, passed the Ways & Means Committee as part of the budget reconciliation process.
“My Republican colleagues and I on the Ways and Means Committee took a critical step in delivering on President Trump’s America First agenda by extending pro-growth tax cuts and relief for working families and small businesses in West Texas,” said Chairman Arrington. “Included in the bill are priorities I led which cut taxes, rein-in burdensome regulations, and strengthen healthcare for Rural America.”
Arrington legislation included in the committee-passed bill include:
Since 2023, the effects of this provision have gradually diminished to the point where businesses can only now expense 40% of the value of their investments. Unless Arrington’s ALIGN Act is signed into law, this provision will be fully phased out in 2027.
This legislation allows Business Development Companies (BDC) to qualify for the 20% deduction on Qualified Business Income (QBI), a benefit that Real Estate Investment Trusts (REITS) and S-Corporation banks already enjoy under Section 199A of the Internal Revenue code.
BDCs are critical to providing capital to small and growing businesses, however they currently do not receive the same tax benefits as other pass-through entities.
The Eliminating Lavish Incentives to Electric (ELITE) Vehicles Actwould end the federal electric vehicle and charging stations tax credit, preventing taxpayer money from subsidizing the purchase of luxury electric vehicles for high-income individuals and corporations.
The ELITE Act repeals the $7,500 tax credit for new electric vehicles, eliminates the tax credit for purchasing used electric vehicles, ends the federal investment tax credit for electric vehicle charging stations, and closes the “leasing loophole” that has allowed certain taxpayers and foreign entities like China to evade restrictions on electric vehicle incentives.
The Joint Committee on Tax originally scored these electric vehicle tax credits to cost $14 billion over 10 years, but private firms later estimated the real cost would be over $390 billion.
This legislation allows previously closed rural hospitals to reopen as rural emergency hospitals (REH) which will restore critical essential health care services.
In 2020, Congress created the REH designation to allow low-volume rural hospitals at risk of closure to eliminate underused inpatient beds but keep needed emergency and outpatient services.
Restrictive eligibility reserves this model only to current hospitals, not those who recently shuttered prior to December 2020.
The bill expands the eligibility requirements by allowing hospitals that have been closed since 2014 to become a Rural Emergency Hospital and receive the additional funding included with the designation.
