Legislative update - Finance Committee approves amended “tax extenders” legislation 

April 3:  The Senate Finance Committee today approved legislation to extend expired tax preferences—the “tax extenders” legislation—for two years, through 2015.

The Finance Committee also approved a mark of a technical corrections bill.


After adopting a number of modifications to the chairman’s original proposed “mark,” the legislation approved by the Finance Committee would extend 53 of 55 provisions that expired in 2013, through 2015.

Two energy related provisions would not be extended:

  • The section 45M credit for energy efficient appliances
  • The placed-in-service date for partial expensing of certain refinery property

Provisions added and approved

The committee approved Chairman Ron Wyden’s (D-OR) modification of his mark, which includes seven of the 12 provisions he had omitted:

  • Look-thru treatment of payments between related controlled foreign corporations (CFC)
  • Credit for nonbusiness energy property
  • Credits with respect to facilities producing energy from certain renewable resources
  • Seven-year recovery period for motorsports entertainment complexes
  • Contributions of capital gain real property made for conservation purposes
  • Energy efficient commercial buildings deduction
  • Special expensing rules for certain film, television, and theatrical productions

Wyden modified four other provisions concerning:

  • Temporary minimum low-income housing tax credit rate for non-federally subsidized new buildings
  • Employer wage credit for employees who are active duty members of the uniformed services
  • Work opportunity tax credit
  • Qualified zone academy bonds

The Finance Committee voted separately at the markup to extend three additional provisions:

  • Empowerment Zones under section 1391
  • Special rule for sales or dispositions to implement Federal Energy Regulatory Commission (FERC) or State electric restructuring policy under section 451(i)
  • Health care tax credit for displaced workers

The Finance Committee also approved three other amendments:

  • Inflation indexing of $500,000 / $2 million section 179 small business expensing
  • A startup innovation credit under the section 41 research credit
  • Expansion of the transportation fringe benefit for bicycles

JCT documents

The Joint Committee on Taxation (JCT) released documents related to the modifications:

  • JCX-31-14: Description of the chairman’s modification to the Expiring Provisions Improvement Reform And Efficiency (Expire) Act
  • JCX-32-14: Estimated revenue effects of the chairman’s modification to the Expiring Provisions Improvement Reform and Efficiency Act of 2014
  • JCX-33-14: Description of the chairman’s modification to tax deadwood

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Share this

Share this


Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.

Email your contact information.

TaxNewsFlash-United States by year