June 2, 2010
House approves revised extender package with expanded offsets;
Senate action is expected in June
The House has voted (215 to 204) to approve legislation
(H.R. 4213) to extend a number of popular existing tax incentives,
continue benefits for the unemployed and extend the time for
correcting certain pension shortfalls. Over $44 billion in new taxes
would be used to offset a portion of the cost of these provisions.
As passed by the House, the bill would extend, generally for one
year, over 30 tax provisions that expired at the end of 2009,
including popular tax provisions such as the following:
- Research credit
- Itemized deduction for state and
local sales taxes
- 15-year cost recovery for
qualified leasehold improvements, qualified restaurant buildings
and improvements, and qualified retail improvements
- Look-through treatment of
payments between related controlled foreign corporations under
foreign personal holding company income rules
These extensions are retroactive to
the beginning of 2010. The bill does not address the individual
alternative minimum tax, nor does it address the expiration of the
2001 and 2003 tax cuts, currently scheduled to occur on Jan. 1,
2011.
The House bill represents a compromise agreement reached with key
Senate Democrats, but it is unclear if Senate Democratic leadership
has the votes to pass the current package and send it to the
president as is. The Senate is not expected to begin consideration
of this legislation until after the Memorial Day recess.
The chart in our
Tax Legislative Update lists the bill's provisions in full
detail.
For more information
Cynthia Keveney
Financial
Services
Grant Thornton LLP
T 212.624.5495
E
Cynthia.Keveney@gt.com
Visit
www.GrantThornton.com.
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