Senate Finance Committee Opens Debate on Extending Tax Provisions

The Senate Finance Committee began consideration of a package of “tax extenders” (tax provisions that are typically renewed annually). The base bill extends about 50 provisions that impact individuals (the biggest of which is the Alternative Minimum Tax patch at about $98 billion), businesses (which includes research and experimentation and section 179 expensing), and energy proposals (such as credits for biodiesel).  About 20 provisions that have typically been included in the annual extenders were not included in the package (although they may be added back as the package is considered). The package will initiate discussions over which temporary provisions should be extended.  The temporary nature of the tax code is the cause of the fiscal cliff.  Comprehensive tax reform will require a careful examination of rates, which the Senate debated last week and the House debated this week, with the “extenders” being debated in the finance committee today.  Although Republicans and Democrats are currently in disagreement on how to achieve comprehensive tax reform, it is important both parties begin discussions now so a resolution can be reached after Election Day. For more information, please contact Jeff Shoaf at (202) 547-3350 or shoafj@agc.org.