The Senate voted early Wednesday to approve a sweeping tax-reform bill that could help the door and window industry. Because of a procedural error, the House will have to re-vote on the bill. It’s expected to be signed later this week by President Trump.

Here are the highlights of the final legislation, which has some differences with earlier versions:

Corporate taxes: Cuts the current 35-percent rate to 21 percent beginning January 1.

Pass-through businesses: The bill lets so-called “pass-through” businesses deduct 20 percent of the first $315,000 of earnings. In 2014, about 95 percent of the 26 million businesses in the U.S. were pass-throughs, according to the Brookings Institution. They’re called that because the income they generate “passes through” to their owners, who are then taxed under the individual income tax system.

Business investment: Companies can immediately write off the full cost of new equipment.

Multinational corporations: Companies moving overseas will lose certain tax advantages.

Mortgage interest deduction: It will be limited to the interest paid on the first $750,000 of a new loan for a first or second home. Currently, the limit is $1 million.

State and local taxes: Keeps the itemized deduction for these but only up to $10,000. This deduction is important to homeowners.

Individual mandate: Repeals the requirement in Obamacare that forced people to pay a penalty if they don’t buy health insurance.

Inheritance tax: Doubles the limits on assets transferred to heirs to $11 million for individuals, $22 million for couples. However, this provision will be going away in 2025.

Energy Efficiency Not Part of Final Bill

Earlier this week, the Alliance to Save Energy criticized the tax-reform bill for failing to include direct energy efficiency incentives. The association led a group of businesses and organizations calling for Congress to reinstate several expired efficiency tax provisions, including one that gives homeowners up to $500 for upgrading their homes with products such as windows.

The U.S. tax code currently includes no meaningful provisions encouraging efficiency. A letter to Congress signed by 21 companies and organizations calls for addressing that omission by updating and reinstating the lapsed incentives, which expired Dec. 31, 2016. Several senior senators have recently called on Congress to reinstate expired incentives through a year-end “tax extenders” package.

“Energy efficiency is among the leading employers in the entire energy sector, supporting nearly 2.2 million U.S. jobs,” the letter states. “It is both an economic opportunity – saving consumers and businesses billions of dollars per year while creating economic activity – and the single most important solution we have for responsibly managing our natural resources and reducing harmful emissions.”

Alliance to Save Energy president Kateri Callahan noted that the tax bill conference agreement includes one positive development for energy efficiency concerning the expensing of building equipment and components such as heating and air systems. Although buildings account for 40 percent of U.S. energy consumption, purchase of upgraded equipment has long been discouraged in the tax code, as equipment with a useful life of 10 or 20 years must be expensed over 39 years. By eliminating that obstacle, the tax bill  should encourage companies to purchase more efficient equipment.

Three major energy efficiency incentives expired on Dec. 31, 2016: one that incentivizes homeowners for efficiency upgrades and equipment purchases such as weatherizing or installing new windows or more efficient heating and cooling equipment; another that incentivizes home builders for more efficient construction; and the third for efficiency improvements of commercial buildings and multi-unit residential buildings.

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