The committee voted last week to make permanent six of the almost 60 tax extenders that expired in 2013. The approved extenders will help create jobs and grow businesses, according to congressional Republicans.
The House Ways and Means Committee agreed April 29 to make permanent six tax provisions that expired at the end of 2013, including the research and development (R&D) credit and an extension of the $500,000 small-business expensing limit.
Ways and Means Committee Chairman Dave Camp (R-MI) scheduled the vote last week as the first step toward considering which of the nearly 60 expired tax extenders Congress should renew permanently. Camp had previously been reluctant to take up extenders before comprehensive tax reform is enacted, but he is now considering them piecemeal. Camp has said that some extender provisions not included in his tax reform draft may still be acted upon, but action may be slow.
Congressional Republicans said the tax extenders approved last week will help businesses grow, create jobs, and invest in the United States. Rep. Pat Tiberi (R-OH), who sponsored the bill on business expensing, said the measure will allow small-business owners to immediately deduct the cost of investments in property, equipment, and computer software rather than depreciating these costs over time.
“This bill would create stability, certainty, and simplicity for businesses by making permanent the $500,000 maximum expensing limit, rather than the lower current law limit of $25,000, which has raised and dropped numerous times over the years,” Tiberi said in an opening statement at the committee mark-up.
Earlier in April, the Senate Finance Committee easily passed a bill extending most of the nearly 60 expired tax breaks, and Senate Majority Leader Harry Reid (D-NV) has promised to bring the package to a vote soon. The Senate legislation did not include any offsets to pay for the extenders.
With action in the House proceeding more slowly, many observers say an extenders package is unlikely to pass both chambers until late in the year.