Legislative update - House passes highway financing extension, including “pension smoothing” provision 

July 15: The House today, 367-55, approved H.R. 5021, a bill that would provide $20 billion for highway funding, through May 31, 2015.

The bill includes two revenue provisions that together raise $10.8 billion:

  • A “pension smoothing” provision that would reduce companies’ tax deductible payments to fund pension plans, thus increasing the taxable income of employers and employees in the near term
  • Extension of custom user fees from 2023 to 2024

Read a Joint Committee on Taxation description of the provisions—JCX-79-14 [PDF 70 KB]

Read the White House reaction to H.R. 5021 in a Statement of Administration Policy [PDF 73 KB] issued by the Office of Management and Budget.

Senate version

The Senate Finance Committee on July 10 approved similar legislation. Read TaxNewsFlash-United States

The Senate is expected to act on the companion bill soon.

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