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Finance Committee Tentatively Schedules Tax Extenders Measure

Chairman Orrin Hatch (R-Utah) announced during a media interview that the Senate Finance Committee is scheduled to conduct a markup of a tax extenders package the week of July 13, which would put the Senate on track to take the first step in renewing the popular R&D credit, depreciation provisions and possibly all other expired AGC tax priorities. If the committee does act, the most likely scenario would be a two-year extension similar to S. 2260: Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act that the committee approved in 2014.

The earlier Congress acts on extenders, the more lawmakers appear to be giving up on bigger tax changes in 2015. Unfortunately, no Senate floor time has been prospectively scheduled to debate tax legislation – outside of provisions that raise revenue for the Highway Trust Fund.

Following the release of the anticipated reports from the Senate Finance Tax Working Groups on July 8, W&M Chairman Ryan said "Unfortunately comprehensive reform is not possible under a president who wants to raise taxes on families and job creators.” He has regularly alluded that reform would happen after the 2016. Since the beginning of the year, the House has been passing individual pieces of legislation to make selected tax provisions permanent. One additional AGC bill has been approved by the Ways & Means Committee and legislation to make permanent bonus depreciation is tentatively slated for committee action in July. Neither the House nor the Ways and Means Committee have begun to debate a short-term retroactive tax extenders package.

The tax extender legislation approved at the end of 2014 applied a retroactive extension for 2014 for the following AGC supported tax policies:

  • Section 179 maximum deduction limit of $500,000 with a $2 million phase-out
  • 50 percent bonus depreciation for qualified property
  • 15-year straight-line cost recovery for qualified leasehold improvements
  • Reduced 5-year holding period for S-corporation recognition for built-in gains tax
  • New Markets Tax Credit (NMTC)
  • Work Opportunity Tax Credit (WOTC) –  including qualified veterans
  • Research and Development tax credit
  • Renewable energy production and investment tax credits (PTC)
  • Energy efficient commercial buildings deduction under Section 179D

For more information, please contact Brian Lenihan at lenihanb@agc.org or (202) 547-4733. Return to Top