House Ways And Means Committee Votes To Make Permanent A Handful Of Expiring Tax Provisions
Last Thursday the U.S. House Committee on Ways and Means voted to make five expiring tax credits permanent. The bills the committee considered were:
- H.R. 2510, which would make the 50-percent bonus depreciation permanent;
- H.R. 961, which would permanently extend the subpart F exemption for active financing income;
- H.R. 1430, which would make permanent the tax rule exempting dividends, interest, rents and royalties received or accrued from certain controlled foreign corporations by a related entity from treatment as foreign holding company income;
- H.R. 765, which would make permanent the 15-year depreciation schedule for leasehold improvements, restaurant improvements and new construction and retail improvements; and
- H.R. 2940, which would make permanent the above-the-line deduction for classroom expenses of schoolteachers.
Together these five provisions would reduce taxes by $412 billion over ten years. As Connecting the Dots noted last week, Congress must contend with more than 50 expiring tax provisions before the end of the year. While MSCI strongly supports making these, and the other expiring, provisions permanent, the most likely outcome is that Congress will extend these provisions on a temporary basis, for the next year or two.