The Senate approved a one-year retroactive extension of most of the temporary tax deductions, credits, and incentives that expired at the end of 2013. The Tax Increase Prevention Act of 2014 (H.R. 5771) passed the Senate 76-16 and cleared the House of Representatives on December 3. Support for the bill was bipartisan with 45 Democrats and 31 Republicans voting in favor of the measure. It now heads to the White House for signature. Although the White House has not issued an official statement on the legislation, President Obama is expected to sign it into law.
The expired provisions that would be renewed through the end of 2014 include:
- The R&D Tax Credit;
- The Work Opportunity Tax Credit;
- The New Markets Tax Credit;
- The credit for construction of energy-efficient new homes;
- The production tax credit for wind and other alternative forms of energy;
- The credit for alternative fuel vehicle refueling property;
- Bonus depreciation and the election to accelerate alternative minimum tax credits in lieu of additional first-year depreciation;
- Increased expensing limits for §179 property and the expanded definition of §179 property;
- 15-year straight-line cost recovery for qualified leasehold improvements;
- The deduction for energy-efficiency improvements to commercial buildings;
- The deduction for energy-efficiency improvements to existing homes;
- The deduction for charitable contributions of food inventory;
- The deduction for state and local sales taxes;
- Special rules for contributions of capital gain real property made for conservation purposes; and
- The income exclusion for employer-provided mass transit and parking benefits.
This legislation would not modify any of the provisions from prior law.