Estimates Of Federal Tax Expenditures For Fiscal Years 2023-2027

The Congressional Budget and Impoundment Control Act of 1974, Pub. L. No. 93-344, requires the Congressional Budget Office (“CBO”)  and the Treasury to publish detailed lists of tax expenditures annually.  The staff of the Joint Committee on Taxation (“Joint Committee staff”) issued reports prior to the statutory obligation placed on the CBO and continued to do so thereafter.  In light of this precedent and a subsequent statutory requirement that the CBO rely exclusively on Joint Committee staff estimates when considering the revenue effects of proposed legislation, the CBO has always relied on the Joint Committee staff for the production of its annual tax expenditure publication.  The Joint Committee staff has prepared a report on tax expenditures for fiscal years 2023-2027.

The Joint Committee staff has made its estimates based on the provisions in Federal tax law enacted through August 31, 2023.  In general, expired or repealed provisions are not listed unless they have continuing revenue effects that are associated with ongoing taxpayer activity.  Proposed extensions or modifications of expiring provisions are not included until they have been enacted into law.  The tax expenditure calculations in this report are based on the February 2023 CBO revenue baseline and Joint Committee staff projections of the gross income, deductions, and expenditures of individuals and corporations for calendar years 2023-2027.