Legislative update: House action on “tax extenders” proposals

House action on “tax extenders” proposals

The House on February 13, 2015, passed, 272 to 142, H.R. 636 (as described below).

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The House on February 12, 2015, passed 279 to 137, H.R. 644 (described below).The House Ways and Means Committee today reported out three bills that would make permanent certain “tax extenders.”

  • H.R. 880, to simplify and make permanent the section 41 research credit, passed 23 to 12.
  • H.R. 622, to make permanent a deduction allowing or provided to individual taxpayers to deduct state and local general sales tax, passed 22 to 14.
  • H.R. 529, concerning section 529 plans, passed by voice vote.

House floor action

The House this afternoon has been considering a bill that would make certain temporary provisions of the Code permanent. Final vote on H.R. 644 is expected by early evening.

H.R. 644, America Gives More Act of 2015, contains permanent extensions relating to:

  • Food inventory
  • IRA charitable contributions
  • Qualified conservation easements
  • Private foundation excise tax (this is a new proposal, one that has not traditionally been part of the “tax extenders”)

The Joint Committee on Taxation today released a revenue estimate of this bill on the JCT website (posted on February 12, 2015).

The House tomorrow is expected to consider H.R. 636, America’s Small Business Tax Relief Act of 2015—a bill that includes permanent extensions relating to:

  • Section 179 expensing
  • Section 1374 built-in gain tax
  • S corporation basis adjustment

If or when the Senate would consider these bills has not been established.

There are two Statements of Administration Policy (SAPs) indicating that the president would be advised to veto these two bills, in large part because the revenue costs are not offset.

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