House Passes Tax Extenders Package

House Passes Tax Extenders Package

The House has approved tax extenders legislation that makes a number of the periodically expiring tax breaks into permanent features of the tax code.

Among the provisions that would be made permanent are the enhanced Child Tax Credit, the enhanced American Opportunity Tax Credit, the enhanced Earned Income Tax Credit, the above-the-line deduction for teachers who buy school supplies, the charitable deduction of contributions of real property for conservation purposes, along with the Research & Development Tax Credit and Section 179 expensing (see Congress Makes Some Tax Extenders Permanent).

The legislation passed by a vote Thursday of 318 to 109 and is expected to be approved swiftly by the Senate this week.

“Today, the House took a pivotal step towards rewriting our broken tax code by ending Washington's days of extending tax policies one year at a time,” said House Speaker Paul Ryan, R-Wis., in a statement. “This package of permanent extenders will shield families from a tax hike and provide businesses with greater economic certainty to grow and prosper, which means higher wages and more full-time jobs for American workers. It also includes several bipartisan reforms to rein in the IRS, such as firing employees who target taxpayers based on their personal religious or political beliefs. As I’ve said before, comprehensive tax reform is essential to restoring a more confident America, and that’s why it will be central to our bold, pro-growth agenda in 2016. I commend Chairman Brady and the entire Ways and Means Committee for their work on this important measure.”

House Ways and Means Committee chairman Kevin Brady, R-Texas, also praised passage of the bill. “Today we’ve acted to help millions of Americans keep more of their hard earned money and have more certainty when they do their taxes,” he said. “By solving these decades-old problems now, we have even more momentum to pass pro-growth tax reform that will boost our economy, help create more jobs and fix our broken tax code.” Read more on Accounting Today.