Winston & Strawn Sponsors and Speaks at the Private Equity New York Forum

Winston & Strawn was a proud sponsor of the Markets Group Private Equity New York Forum.

Tax partner Rachel Ingwer spoke on the “Impact of Tax on Private Equity Strategies” panel. The group discussed where the industry might be at risk of additional tax increases due to inflation concerns. 

Key Takeaways

• The draft of the One Big Beautiful Bill that was released this week has several proposed changes intended to encourage domestic investment.  It brings back immediate expensing and deductions for domestic R&D activity.
• There is also a return to an interest limitation based on EBITDA, rather than EBIT, which could ease some pressure on private equity portfolio companies that have been unable to deduct interest.
• The revenue raisers do not include provisions targeted at private equity managers that had been floated, such as changes to carried interest taxation or self-employment tax rules.
• The bill also includes the new Section 899, which is a retaliatory provision and has the potential to discourage foreigners from investing in the United States if they think that there could be additional U.S. withholding.

Other Winston attorneys from the Private Equity Practice that attended include Justin Levy (partner), Austin Leach (partner), and Alex Roggio (special counsel).