Daily Tax Update - June 8, 2007

WAYS AND MEANS TO MARK UP ENERGY TAX CUTS: Next week, the House Ways and Means Committee is expected to consider a $15 billion package of energy tax cuts.  The package is expected to contain tax incentives for conservation, hydroelectric, solar power and wind energy.   The bill may also contain a provision to close the “Hummer tax loophole,” which would end the accelerated depreciation of sport utility vehicles by small business owners.  Most of the cost of the package is expected to be offset through a provision which would eliminate a tax deduction for oil and gas production.

H.R. 2607: To amend the Internal Revenue Code of 1986 to regulate internet gambling. Sponsor: Rep. McDermott, Jim [WA-7] (introduced 6/7/2007) Cosponsors (None)

H.R. 2608: To amend section 402 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 to provide, in fiscal years 2008 through 2010, extensions of supplemental security income for refugees, asylees, and certain other humanitarian immigrants, and to amend the Internal Revenue Code to collect unemployment compensation debts resulting from fraud. Sponsor: Rep. McDermott, Jim [WA-7] (introduced 6/7/2007) Cosponsors (8)

H.R. 2613: To amend the Internal Revenue Code of 1986 to exclude from gross income gain on the sale of certain residential leased-fee interests to holders of the leasehold rights. Sponsor: Rep. Abercrombie, Neil [HI-1] (introduced 6/7/2007) Cosponsors (1)

S. 1568: A bill to amend the Internal Revenue Code of 1986 to encourage private philanthropy. Sponsor: Sen. Isakson, Johnny [GA] (introduced 6/7/2007) Cosponsors (1)

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 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.