The U.S. Senate recessed for the extended July 4th holiday without acting on H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010 (the extenders bill). Among the bill’s numerous provisions are extensions through 2010 for the tax credit for increasing research activities; the new markets tax credit; accelerated depreciation for farming business machinery and equipment, qualified leasehold improvements, qualified restaurant buildings and improvements, qualified retail improvements, motorsports entertainment complexes, and business property on Indian reservations; the charitable tax deduction for corporate contributions of computer technology and equipment for educational purposes; ) expensing of environmental remediation expenditures; the tax deduction for income attributable to domestic production activities in Puerto Rico; the subpart F exemption (which excludes such income from the shareholder’s foreign personal holding company income) for active financing (insurance, banking, financing, or similar businesses) income earned on business operations overseas; and rules for adjusting the basis of stock of S corporations making charitable contributions of property. The bill also includes revenue raising provisions aimed at the taxation of carried interests.
Tax Extenders Bill hung up in Senate
July 9th, 2010 by Daniel DeLau
July 13th, 2010 at 10:55 am
Mark,
What's your take on the Research Credit extension?
July 20th, 2010 at 2:00 pm
Thank you for your post Ron.
My current thought is that the Research credit will be extended. It has been extended 13 times already and it should be extended again without any lapse. Both political parties are in favor of it. The past few Presidents ‘of the United States have stated that the Research credit should be made permanent. The Research credit has a lot of support.
Furthermore, the research credit is part of an Extenders package that contains a number of different tax items – many of which would be considered “politically unfavorable” for the members of Congress if it were to not be extended including a number of key personal and business tax breaks that are consistently used annually. The reason the last extenders bill stalled (around Memorial Day) came down to the disagreement on how the Extenders legislation would be paid for – not due to “if” this legislation should be extended.
However, the longer the wait the better chance a lapse in credit could occur. A few years ago, it wasn’t until December 20, that the Extenders Bill was signed into law – almost a full 12 months after the credit had expired – although it extended the credit with no break in benefit.
That is my opinion.
Mark
July 21st, 2010 at 2:54 pm
Thanks Mark. Always appreciate your insight.