Daily Tax Update - April 29, 2014: Ways and Means Approved Permanent Extensions of Six Tax Provisions

WAYS AND MEANS APPROVES PERMANENT EXTENSIONS OF SIX TAX PROVISIONS:  Today, the House Ways and Means Committee agreed to make permanent six tax provisions that expired in December 2013.   The Committee approved an enhanced expensing under Section 179, the credit for research and experimentation, a provision providing look-through treatment for controlled foreign corporations, the basis reduction rule for S corporations making charitable contributions of property, the five-year recognition period for built-in gains of S corporations and the active financing exemption for lenders under Subpart F of the tax code.

Chairman Dave Camp (R-MI) said, “Short-term tax policy is bad for business and bad for economic growth and jobs.  The United States is the only country in the world that allows such important pieces of its tax code to expire on a regular basis.  Worse yet, this type of tax policy disadvantages U.S. companies, hurting their ability to remain globally competitive. By making these six bipartisan policies permanent, businesses small and large will have the ability to plan for the future, invest in the economy, hire new workers, and invent new technologies and products.  We need to make the U.S. a more attractive place to invest and hire.  These permanent polices are an important first step to achieve that goal and put us on a path towards comprehensive reform that lowers rates and makes the code simpler and fairer.”

 TAX BILLS INTRODUCED APRIL 28TH:

1. [113rd] H.R.4493 : Faith and Fairness Act of 2014 Sponsor: Rep Cassidy, Bill [LA-6] (introduced 4/28/2014)      Cosponsors (None) Committees: House Ways and Means Latest Major Action: 4/28/2014 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


2. [113rd] H.R.4497 : To amend the Internal Revenue Code of 1986 to provide tax relief for damages relating to federally declared disasters during September 2013, and for other purposes. Sponsor: Rep Gardner, Cory [CO-4] (introduced 4/28/2014)      Cosponsors (None) Committees: House Ways and Means Latest Major Action: 4/28/2014 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


3. [113rd] H.R.4501 : To amend the Internal Revenue Code of 1986 to adjust the limits on expensing of certain depreciable business assets. Sponsor: Rep Kuster, Ann M. [NH-2] (introduced 4/28/2014)      Cosponsors (None) Committees: House Ways and Means Latest Major Action: 4/28/2014 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


4. [113rd] H.R.4503 : To amend the Internal Revenue Code of 1986 to permit the Secretary of the Treasury to issue prospective guidance clarifying the employment status of individuals for purposes of employment taxes and to prevent retroactive assessments with respect to such clarifications. Sponsor: Rep McDermott, Jim [WA-7] (introduced 4/28/2014)      Cosponsors (None) Committees: House Ways and Means Latest Major Action: 4/28/2014 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


5. [113rd] S.2257 : A bill to amend the Internal Revenue Code of 1986 to provide an exemption from the tax on early distributions for certain Bureau of Prisons correctional officers who retire before age 55, and for other purposes. Sponsor: Sen Toomey, Pat [PA] (introduced 4/28/2014)      Cosponsors (None) Committees: Senate Finance Latest Major Action: 4/28/2014 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.


6. [113rd] S.2260 : A bill to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. Sponsor: Sen Wyden, Ron [OR] (introduced 4/28/2014)      Cosponsors (None) Committees: Senate Finance Senate Reports: 113-154 Latest Major Action: 4/28/2014 Placed on Senate Legislative Calendar under General Orders. Calendar No. 366.


7. [113rd] S.2261 : An original bill to amend the Internal Revenue Code of 1986 to make technical corrections, to remove provisions that are no longer applicable, and for other purposes. Sponsor: Sen Wyden, Ron [OR] (introduced 4/28/2014)      Cosponsors (None) Committees: Senate Finance Senate Reports: 113-155