On April 29th, The House Ways and Means Committee approved six separate bills to permanently extend certain expired business tax provisions. These bills specifically address the research and experimentation tax credit (H.R. 4438); ‘look-through’ treatment for controlled foreign corporations (CFCs) (H.R. 4464); the subpart F exceptions for active financing income (H.R. 4429); increased section 179 ‘small business’ expensing limits (H.R. 4457); a reduced recognition period for S corporation built-in gains (H.R. 4453); and basis adjustments to stock of S corporations making charitable contributions of property (H.R. 4454).
These permanent ‘tax extender’ bills, approved by the Ways and Means Committee without revenue offsets, are estimated by Joint Committee on Taxation (JCT) staff to reduce federal revenues altogether by $310 billion over 10 years.
House Majority Leader Eric Cantor (R-VA) has announced that the full House will vote in May on the bill making the research and experimentation tax credit permanent since its inception into the Internal Revenue Code as a temporary provision back in 1981, with votes to be held in the months ahead on other permanent tax extender bills.
In the Senate, Majority Leader Harry Reid (D-NV) has said he hopes to schedule a Senate floor vote in May on an $85 billion temporary tax extender bill (S. 2260) approved by the Finance Committee on April 3, 2014. S. 2260 would extend more than 50 expired and expiring business and individual provisions, including 50-percent ‘bonus’ depreciation, through the end of 2015. The Finance Committee on April 3 also approved a separate bill (S. 2261) providing technical corrections to tax laws enacted since 2004.