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The Daily

House to Vote on Permanent Tax Extenders Bill

By:
Chris Gaetano
Published Date:
Dec 17, 2015
CongressThe House of Representatives is preparing to vote on a bill that would permanently extend a number of tax provisions that, previously, had needed to be actively renewed, according to the Journal of Accountancy. These include things such as the child tax credit, the American opportunity tax credit, the enhanced earned income tax credit, the R&D tax credit, the employer wage credit for active duty members of the armed services, the 100 percent exclusion on some small business stocks, and the Subpart F exception for active financing income. Other measures, while not permanent, would still be extended for a number of years, such as the new markets tax credit and work opportunity tax credit (five years), as well as the treatment of mortgage insurance premiums as qualified residence interest and the above-the-line deduction for tuition expenses (two years). The bill includes dozens of other measures that will be made permanent or extended for at least two years. 

USA Today said that the bill was originally about both spending and tax cuts, but for political purposes it was decided to split the bill in two, so that Republicans can vote for the tax cut bill without having to vote also on government spending, and vice versa for the Democrats.