On May 15 the Senate failed to muster the 60 votes required to end debate and limit amendments on a bill that would renew the tax provisions through the end of 2015. The deductions are part of the so-called “tax extenders” bill , or the Expiring Provisions Improvement, Reform, and Efficiency (EXPIRE) Act of 2014.
FEI joined 151 other associations, non-profits, and coalitions on May 20 in a letter asking the Senate to pass the EXPIRE Act as soon as possible. FEI also sent its own letter to the Senate on May 14.
While the tax extenders package is typically supported by both sides of the aisle as a policy matter, during Senate consideration of the bill last week Democratic leaders wanted to limit amendments to those related to the bill and blocked Republican efforts to offer amendments on other tax policy issues, such as the medical device excise tax repeal. As a result, Republicans objected to moving forward on the bill on procedural grounds and voted against the motion on the bill. Democratic and Republican leadership are currently discussing an agreement on amendments as a way to move forward on the bill. However, it is unlikely that the Senate will be able to reconsider the bill on the floor until after the Memorial Day recess next week.
The U.S. House of Representatives has taken a differing approach to tax extenders. On May 9, the House voted 274 to 131 to approve H.R. 4438, a bill to strengthen and make permanent the R&D tax credit. Rather than a temporary extension, H.R. 4438 is one of six bills approved by the Ways and Means Committee in April that would make permanent certain business tax extenders. The committee has yet to consider a bill that would renew the remaining expired or expiring tax provisions included in the EXPIRE Act.
Take Action
While FEI strongly supports H.R. 4438 and the other permanent tax extender bills pending in the House, FEI is urging Congress to reenact the tax extender provisions that expired at the end of 2013 and are included in the EXPIRE Act without delay. These tax provisions benefit a wide range of taxpayers and are important to U.S. jobs and the broader economy, but the lack of timely congressional action to extend these provisions and make them permanent is disruptive and injects more instability and uncertainly into the economy. Important tax extenders for the business community include the R&D tax credit, as well as 50 percent bonus depreciation, subpart F exemption for active financing income, look-through treatment for controlled foreign corporations (CFC), and the reduced recognition period for S corporation built-in gains.
Many FEI members have been sending their own letters to their senators asking them to vote for the EXPIRE Act using FEI Grassroots, powered by Voter Voice. FEI appreciates the support of its members on this important legislative campaign. If you would like to send letters to your senators, you can do so at FEI Grassroots by clicking here.
For more information, contact Karen Lapsevic, Director, Government Affairs, at 202-626-7809 or [email protected].