House Approves Revised Extender Package with Expanded Offsets; Senate Action is Expected in JuneJune 11, 2010 — 1,095 views
The House has voted (215 to 204) to approve legislation (H.R. 4213) to extend a number of popular existing tax incentives, continue benefits for the unemployed and extend the time for correcting certain pension shortfalls. Over $44 billion in new taxes would be used to offset a portion of the cost of these provisions.
As passed by the House, the bill would extend, generally for one year, over 30 tax provisions that expired at the end of 2009, including popular tax provisions such as the following:
- Research credit
- Itemized deduction for state and local sales taxes
- 15-year cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements
- Look-through treatment of payments between related controlled foreign corporations under foreign personal holding company income rules
These extensions are retroactive to the beginning of 2010. The bill does not address the individual alternative minimum tax, nor does it address the expiration of the 2001 and 2003 tax cuts, currently scheduled to occur on Jan. 1, 2011.
The House bill represents a compromise agreement reached with key Senate Democrats, but it is unclear if Senate Democratic leadership has the votes to pass the current package and send it to the president as is. The Senate is not expected to begin consideration of this legislation until after the Memorial Day recess.
The chart in our Tax Legislative Update lists the bill's provisions in full detail.
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