In hearing, Camp pledges to preserve only some extenders


Tax Hot TopicsHouse Ways and Means Committee Chair Dave Camp, R-Mich., held a hearing on April 8 to discuss only seven of the more than 50 tax provisions that expired at the end of 2013. For now, Camp still appears committed to trying to make a handful of expired provisions permanent, rather than temporarily extending most or all of them.

Democrats on the committee complained that they did not have an opportunity to offer extensions of provisions that they support, and some criticized Camp for not proposing to pay for his permanent extensions. Camp said he planned to try to move several separate pieces of permanent legislation instead of one comprehensive “extender” bill. Making some of the temporary provisions permanent would provide a lower permanent revenue baseline, and would potentially make it easier to lower rates as part of tax reform. But tax reform remains extremely unlikely in 2014, and Camp is retiring at the end of the year.

The Senate Finance Committee took the traditional approach — approving legislation that would extend 51 of the expired provisions for two years. The Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act would provide a retroactive extension from the beginning of 2014, and generally does not include revenue offsets to cover the cost of the extensions. Senate Majority Leader Harry Reid, D-Nev., has pledged to bring the EXPIRE Act to the Senate floor for a vote “sooner rather than later,” but a final agreement between the House and Senate could take months.

Mel Schwarz

Tax professional standards statement
This document supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the subject of this document, we encourage you to contact us or an independent tax adviser to discuss the potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this document may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this document is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.