Daily Tax Update - July 29, 2005

The Daily Tax Update will be published on a periodic basis until Congress returns from its August recess on September 6th.

CONGRESS WRAPS UP HIGHWAY, ENERGY BILLS BEFORE AUGUST RECESS:
Today or tomorrow, both the House and Senate will recess until after Labor Day. Yesterday, the House approved the conference report to the energy bill with Senate passage expected today. The energy bill contains $14.5 billion in tax incentives over ten years. The Senate is also expected to approve the highway reauthorization bill conference report today or tomorrow.

  • A summary of the tax provisions in the energy bill can be accessed here.

TAX BILLS INTRODUCED JULY 28:

  • H.R. 3522 sponsored by Rep. Timothy Bishop (D-NY) would clarify that installment sales treatment shall not fail to apply to property acquired for conservation purposes by a State or local government or certain tax-exempt organizations merely because purchase funds are held in a sinking or similar fund pursuant to State law.
  • H.R. 3523 sponsored by Rep. Timothy Bishop (D-NY) would exclude from estate taxes the value of farmland so long as the farmland use continues and repeal the dollar limitation on the estate tax exclusion for land subject to a qualified conservation easement.
  • H.R. 3533 sponsored by Rep. Dave Camp (R-MI) would provide that net operating losses shall not be reduced in connection with a discharge of indebtedness in certain chapter 11 bankruptcy cases involving asbestos-related claims.
  • H.R. 3574 sponsored by Rep. Connie Mack (R-FL) would expand incentives for saving.
  • H.R. 3578 sponsored by Rep. Robert Menendez (D-NJ) would exclude from gross income military pay received by a member of a reserve component of the Armed Forces of the United States who is called to active duty.
  • H.R. 3580 sponsored by Rep. Tim Murphy (R-PA) would provide for a transferable credit against the income tax for producing energy from waste coal.
  • H.R. 3584 sponsored by Rep. Frank Pallone, Jr. (D-NJ) would extend the financing of the Superfund.
  • H.R. 3585 sponsored by Rep. Jon Porter (R-NV) would exclude from gross income employer contributions to college tuition plans and education savings accounts.
  • H.R. 3586 sponsored by Rep. Jon Porter (R-NJ) would provide for Small Business Protection Accounts.
  • H.R. 3587 sponsored by Rep. Jim Ramstad (R-MN) would extend to church plans the exemption from unrelated business tax for debt-financed property held by pension plans.
  • H.R. 3591 sponsored by Rep. Mike Rogers (R-MI) would provide a credit to facilitate the accelerated development and deployment of crash avoidance and crash protection systems.
  • H.R. 3599 sponsored by Rep. Paul Ryan (R-WI) would clarify the calculation of the reserve allowance for medical benefits of plans sponsored by bona fide associations.
  • H.R. 3614 sponsored by Rep. Frank Wolf (R-VA) would allow physicians a credit against income tax for providing charity care.
  • S. 1523 sponsored by Sen. Olympia Snowe (R-ME) would make permanent increased expensing for small businesses.
  • S. 1528 sponsored by Sen. Mitch McConnell (R-KY) would provide for the tax treatment of horses.
  • S. 1533 sponsored by Sen. John Rockefeller (D-WV) would provide a tax incentive to individuals teaching in elementary and secondary schools located in rural or high unemployment areas and individuals who achieve certification from the National Board of Professional Teaching Standards.
  • S. 1538 sponsored by Sen. John Rockefeller (D-WV) would expand the incentives for the construction and renovation of public schools.

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE: As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

STEPTOE & JOHNSON LLP - TAX PRACTICE
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving.  Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them.  Read  more information on Steptoe's tax practice