On Wednesday, December 3, 2014, the House of Representatives passed a $42 billion package that would extend the nearly 50 tax provisions in the “tax extenders” bill through the end of 2014, putting the measure on a path toward President Obama’s desk. The breaks – known collectively as “extenders” – include a range of tax incentives for businesses, individuals, and non-profits. Two provisions the Association has been keeping its eye on were included in the package: 1) The basis adjustment to stock of S Corporations making charitable contributions of property and 2) the reduction in the recognition period for built-in-gains tax from ten years to five years.
House Republicans turned to the one-year extension after talks between Senate Majority Leader Harry Reid (D-Nev.) and Ways and Means Committee Chairman Dave Camp (R-Mich.) over the broader deal broke down following a veto threat from President Obama. While the one year deal is not ideal, lawmakers from both parties echoed sentiments that it’s a start and better than no deal at all.
Senate Finance Committee Chairman Ron Wyden (D-OR) told reporters on Thursday that the Senate would not amend the House bill, setting the stage for an up-or-down vote, probably within a week. However, Majority Leader Harry Reid (D-Nev.) said Thursday night that the Senate might not be able to pass the House tax extenders bill before the end of the year. Reid said it was “imperative” for the Senate to pass a government funding bill and a defense spending measure before adjourning for the year but that senators would have to wait and see if a tax deal makes it to the floor. “Everyone knows we have to do a spending bill. Everyone knows we have to do a defense bill,” Reid said on the Senate floor. “Everyone knows that we’re trying to do some tax extenders. We’re trying to do that, but we’ll see.” For now, it’s a waiting game to see what if any action will be taken by the Senate.