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.

Extenders

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



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