(Bloomberg) – The tax bill passed by Republicans in the U.S. Senate over the weekend may boost profits for industries from banking to retail to fossil fuels.
It also could put the squeeze on hospitals and renewable energy firms.
While the plan is still subject to revision, the centerpiece of the existing legislation is a reduction in the corporate income tax rate to 20% from the current 35%, along with a provision that allows some companies to bring back hundreds of billions of dollars in foreign profits at a lower rate than they otherwise would've paid.
The Senate bill preserves the alternative minimum tax for corporations after originally proposing to eliminate it. With the regular corporate rate now set to drop to 20% — the same as the corporate AMT — it's unclear if companies would be able to use research and development credits to lower their tax bills.
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