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Congress enters the fall needing to jump-start negotiations over the extension of the 50-plus popular tax provisions that expired at the end of 2014. Each chamber has made progress on extensions, but movement toward a final compromise remains slow.
The Senate Finance Committee approved tax legislation on July 21 that would generally extend all 50-plus popular tax provisions for two years, retroactively from Jan. 1, 2015, through the end of 2016. House Republicans have taken a different tack. Instead of voting to extend all the provisions temporarily, they have voted to make select provisions permanent. Most recently, the House Ways and Means Committee approved five bills on Sept. 17 that would make the following provisions permanent:
Tax professional standards statement
- Bonus depreciation
- Above-the-line deduction for $250 for teacher classroom expenses
- Controlled foreign corporations (CFC)-related payment look-through rule
- Subpart F exemption for active-financing income
- 15-year cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements
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