The proposed Republican tax overhaul would eliminate a tax provision some businesses use to deduct dues paid to associations for lobbying local and tribal governments, according to an analysis of the legislation by attorney Andrew Emerson of Holland & Knight.

In a Nov. 2 blog post, Emerson noted the Internal Revenue Service traditionally prohibits businesses from deducting lobbying and political expenditures from their taxes. However, there has long been an exception for "local councils and similar governing bodies," which the agency has broadly construed to apply to city and state councils as well as tribal governments, he said.

The GOP plan as outlined in the Tax Cuts and Jobs Act would eliminate the exception, generating $800 million in tax revenue over 10 years.

"If the Tax Cuts and Jobs Act passes, and this provision survives ongoing negotiations in its current form, then there may be a substantial impact on trade associations and corporations that engage with local governments, particularly those actively working with tribal governments," Emerson said. http://bit.ly/2hB1MqO

Republican leaders have said they would like to pass the legislation by Christmas, but several business groups oppose the bill in its current form because of the loss or reduction of tax breaks that benefit their industries. Other groups are urging quick passage of the bill, with the U.S. Chamber of Commerce a major supporter.

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