Grassley announces task forces on extenders

Tax Hot Topics newsletter 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.

Dustin Stamper
Managing Director
Washington National Tax Office
T +1 202 861 4144

Omair Taher
Senior Associate
Washington National Tax Office
T +1 202 861 4143

Tax professional standards statement
This content 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 topics presented herein, we encourage you to contact us or an independent tax professional to discuss their 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 content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content 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.