Revival of four dozen tax breaks, including incentives for the agricultural sector, is possible in the lame-duck session that opens next week, says the Washington Post. The top issue for lawmakers will be passage of a funding bill to keep the government open after Dec 11, when a stopgap bill expires. “Lawmakers are also under pressure to revive a variety of tax breaks that expired at the end of last year, including popular business perks such as the credit for research-and-development expenses,” said the Post. The so-called tax extenders package includes the $1 a gallon biodiesel tax credit, wind and solar power incentives, a larger Section 179 business expense deduction and a bonus depreciation provision.
The Senate Finance Committee proposed a two-year extension, retroactive to Jan 1. The House has proposed permanent revival of a smaller number of incentives. The Post said “leadership aides in both parties predicted this week that lawmakers would adopt the Senate approach and avoid a potentially divisive fight over giving some breaks favored treatment.”
“The issue of tax policy is likely to be raised at the White House on Friday, when congressional leaders from both parties meet with the president,” said the New York Times in a story about prospects for broad-scale tax reform next year.
Action on the tax incentives was slowed this year by disagreement whether the provisions should be part of a tax reform package and whether acting piecemeal on them would reduce interest in broad reform.