Daily Tax Update - March 17, 2017: Senators Introduce Bill to Support US Manufacturers

Senators Introduce Bill to Support US Manufacturers:  Senators Rob Portman (R-OH), Debbie Stabenow (D-MI), and Sherrod Brown (D-OH) introduced legislation on March 15 to clarify the domestic manufacturing tax deduction for US manufacturers.  The Promoting More American Manufacturing Jobs Act clarifies the intent of Congress in enacting the section 199 domestic manufacturing deduction to ensure that in contract manufacturing situations, any party to the arrangement that makes a substantial contribution to the manufacture of qualifying good through its US employees is entitled to claim the deduction.

Average Purchase Price of Mortgage Bond-Financed Homes Increases:  Revenue Procedure 2017-27 provides issuers of qualified mortgage bonds, as defined in section 143(a), and issuers of mortgage credit certificates, as defined in section 25(c), with: (1) nationwide average purchase prices for residences located in the United States; and (2) average area purchase price safe harbors for residences located in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam.  The 2017 national average purchase price for homes finances through qualified mortgage bonds and mortgage certificates will increase to $276,000.