Congress OK’s FY16 budget and tax bill

The U.S. Congress on Dec. 18 passed a $1.1 trillion spending bill and an accompanying $650 billion tax package.
 
The budget bill will keep the government funded through September.
 
There are many noteworthy policy changes in the nearly 2,300-page bill, though just a few are of particular importance to municipalities.
 
First among them is a two-year delay in implementation of the Affordable Care Act’s so-called Cadillac tax, which was due to take effect in 2018. Municipalities and other employers offering plans that would face penalties under the tax now have until 2020 before penalties begin.
 
The ACA’s medical devices tax was also delayed by two years.
 
The spending bill also extends federal tax breaks for solar and wind producers, which were set to expire in 2016. The five-year extension was a priority for Democrats, who demanded its inclusion in return for lifting the 40-year ban on U.S. crude oil exports, a Republican priority.
 
The deal permanently extends the Earned Income Tax Credit and the Child Tax Credit of $1,000 per qualifying child. The deal also blocked Republican efforts to ban funds from going to so-called sanctuary cities.
 
The tax package includes some positive developments for public transit users who buy tickets pre-tax. The bill permanently matches the dollar thresholds of pre-tax transit benefits to pre-tax benefits for parking. All commuters will now be able to set aside $255 a month for either car or public transportation expenses. This provision had a great deal of bipartisan support, especially from Northeast delegations.
 
Ultimately, Republicans and Democrats were both able to claim some wins in the legislation, which casts off the spending caps enacted by the Budget Control Act of 2011 (otherwise known as sequestration).
 
And lest anyone doubt that Congress was feeling the holiday spirit, the bill also includes a provision to re-open Capitol Hill for sledding, reversing an earlier decision by the Capitol Police.
​