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House Passes One-Year US Tax Extenders Renewal

by Mike Godfrey, Tax-News.com, Washington

05 December 2014


In a move that the Senate is likely to have to follow, the United States House of Representatives has passed, by a bipartisan vote of 378-46, a Bill that approves a one-year renewal for the "tax extenders."

Following the failure of other more selective and longer-term proposals, the Tax Increase Prevention Act of 2014 takes in all of the 50-plus tax provisions for individuals and businesses that expired at the end of 2013 and extends them until the end of this year. They will therefore need to be revisited by the next Republican-led Congress sometime in 2015.

Renewal of the measures will, however, mean greater certainty for those individual and business taxpayers who are affected by the expired provisions, and also reduce operational and compliance risks that could have delayed the tax filing season and the processing of taxpayer refunds.

The provisions that expired at the end of 2013, which have previously also been rolled forward annually, include, for individuals, mortgage tax relief, the deduction for state and local sales taxes, and education tax deductions.

For businesses, the package of measures includes increased expensing under Section 179; 50 percent bonus depreciation; the work opportunity tax credit; the credit for research and development expenses; and tax breaks promoting renewable energy, such as the production tax credit that is relied upon by the wind industry.

President Barack Obama does not appear to be against the new short-term proposal, following his threat to veto a previous, much more costly proposal that would have permanently extended some of the provisions. In addition, Senate Democrats will probably have to put aside the two-year renewal that they have been seeking and vote through the House bill.

TAGS: individuals | tax | business | sales tax | energy | corporation tax | tax credits | education | United States | tax breaks | individual income tax | research and development | Tax

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