Abandoning its push to make permanent certain tax breaks, the U.S. House of Representatives overwhelmingly approved H.R.5771 yesterday to extend by one year more than 50 expired tax measures, including the research-and-development tax credit and bonus depreciation. It approved the measure despite objections from numerous lawmakers that waiting until year-end for a one-year retroactive extension prolongs uncertainty and provides little benefit.
H.R.5771 cleared the chamber after a tentative deal for a longer extension collapsed in the face of a White House veto. The one-year extension pushes reconsideration of the taxes into next year, when the Republicans control both the House and Senate. It also pushes taxes into a year when budget and sequestration talks are set to resurface. The Senate is expected to adopt the one-year extension.
Last month, more than 500 organizations—including GAMA, NATA and NBAA—appealed to lawmakers to move quickly on the expired provisions, saying such action would “provide important predictability necessary for economic growth.” NATA president Tom Hendricks praised action to move forward, but said, “We still hope that Congress and the administration will consider adding at least one more year to this bill.”