The top Republican and Democratic Senate tax writers have come together once again to push for retroactively extending a series of popular tax provisions that expired at the end of 2017. They are also seeking to preemptively extend a second set of provisions set to expire at the end of this year.
Senate Finance Committee Chair Chuck Grassley (R-Iowa) delivered a floor statement on May 16 stressing the importance of providing certainty to taxpayers who rely on extenders. He also announced the creation of five task forces to examine each provision, determine whether they should be renewed, and, if so, develop a long-term solution to address them.
The task forces, a bipartisan effort with ranking minority member Ron Wyden (D-Ore.), are broken up by issue area, covering workforce and community development, health taxes, energy, business cost recovery and individual excise taxes and other temporary policies.
More than 30 provisions expired at the end of 2017, including:
- Alternative fuel and biofuel credits
- Energy-efficient new home credit
- Energy-efficient commercial building property credit
- Special expensing for film and television products
- Three-year depreciation for racehorses
- Seven-year cost recovery for motor sports entertainment complexes
- Expensing for advanced mine safety equipment
Another nine are set to expire in December 2019, including:
- Look-through treatment of payments between related controlled foreign corporations
- Employer credit for paid family and medical leave
- Health insurance cost credit
- New markets tax credit
Grassley has been the most dogged proponent of extenders legislation in Congress. He and Wyden introduced the Tax Extender and Disaster Relief Act (S. 617
) in March to renew the already expired provisions for 2018 and 2019, but the bill must await a suitable budget vehicle from the House of Representatives. House Ways and Means Committee Chair Richard Neal (D-Mass.) has shown little urgency when it comes to extenders, something Grassley referenced as a point of frustration in his remarks. The task forces appear to be an effort to rekindle momentum and begin working toward a more permanent resolution on the tax provisions.
Washington National Tax Office
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Washington National Tax Office
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