Ways and Means approves making certain “tax extenders” permanent

Ways and Means: certain “tax extenders” permanent

The House Ways and Means Committee today reported seven bills, including measures to make permanent the 50% bonus depreciation deduction, the subpart F exemption for active financing income, and the controlled foreign corporation (CFC) rules.

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The Ways and Means Committee approved the following bills, along party lines:

  • H.R. 2940 would make permanent and index for inflation the above-the-line deduction for classroom expenses of schoolteachers, as well as expand the definition of eligible expenses and modify the definition of eligible educator.
  • H.R. 765 would make permanent the 15-year depreciation schedule for leasehold improvements, restaurant improvements and new construction, and retail improvements.
  • H.R. 2510 would make permanent the 50% bonus depreciation deduction and would modify rules applicable to bonus depreciation for qualified leasehold improvements, passenger automobiles, and long-term contracts.  The bill would further make permanent and modify the election to increase the alternative minimum tax (AMT) credit in lieu of bonus depreciation, provide rules for certain partnerships with a single corporate partner, and provide special rules for fruit- and nut-bearing plants.
  • H.R. 961 would permanently extend the subpart F exemption for active financing income.
  • H.R. 1430 would make permanent the CFC look-through rule.

The committee also approved, by voice vote, the following two bills modifying provisions of the Affordable Care Act:

  • H.R. 2061 would modify section 5000A to provide an additional religious conscience exemption from the individual health coverage mandate.
  • H.R. 1270 would allow certain over-the-counter medicines and products to be available as claims under flexible spending accounts (FSAs) and health savings accounts (HSAs).

The Ways and Means Committee did not offset the revenue costs associated with the bills.

The House of Representatives has not yet scheduled action on the bills.

 

Text of the statutory language and Joint Committee on Taxation (JCT) descriptions of these bills are available on the Ways and Means Committee website.

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