The House last Wednesday passed a $41.6 billion tax extenders bill, which would extend more than 50 individual and business tax breaks for one additional year. The bill extends nearly all of the tax credits that expired at the end of 2013.
The House Bill extends critical tax breaks for individuals and businesses on the eve of the upcoming tax season. Extension of such tax breaks for even just one year will likely ease the IRS’ burden and prevent a disruption in the issuance of refunds for certain taxpayers. Included in the Bill are extensions for the Research and Development Tax Credit, wind production tax credit, renewable fuel credits, and deductions for mortgage debt forgiveness, just to name a few.
The Bill passed as a watered down version of a $400 billion tax extender package, which would have provided long-term relief, such as a permanent R&D tax credit. However, due to time constraints and a lame duck Congress, the House was forced to pass a simpler, less expensive relief package. The Bill set for vote in the Senate this week.