The House Ways and Means Committee may consider a bill as early as next week to extend through 2020 a group of expired and expiring tax provisions frequently referred to as “tax extenders.”
While the exact contours of the legislation are still in negotiations, it is expected to include extensions for the credit for energy efficient building (Sec. 179D), which expired at the end of 2017, and the New Markets Tax Credit (Sec. 45D), which expires at the end of 2019. The bill would also include certain disaster-related provisions and increase benefits for lower and middle-income taxpayers by beefing up the Earned Income Tax Credit and Child Tax Credit.
The legislation would be paid for by an increase to the corporate rate from 21 to 22% and paring back the higher exemption amount for the estate tax that was passed in tax reform.
Last month, Senate Finance Chairman Chuck Grassley (R-IA) and ranking member Ron Wyden (D-OR) announced the formation of several bipartisan task forces to examine these temporary tax provisions. The Senators have also introduced legislation to extend the expired provisions through the end of 2019. A summary of that legislation can be found here.
Phillips Hinch
Vice President, Tax Policy