The Senate Finance Committee voted 19-5 to approve the Family and Business Tax Cut Certainty Act, a $205 billion package that would extend provisions such as the “patch” for the alternative minimum tax (AMT), the research and development tax credit, and the deduction for state sales taxes through 2013.
The legislation is expected to be considered by the Senate in September.
The House Ways and Means Committee is not expected to act on its version of the tax extenders package until after the November elections.
At a cost of $132 billion, Senate Finance Committee Chairman Baucus (D-Mont.) modified his original proposal to add a second year of AMT relief. He also modified the Section 179 expensing maximum amount and phase-out thresholds to $500,000 and $2 million respectively — the levels in effect in 2010 and 2011.
Another change extended the 2.2-cent per kilowatt hour wind electricity production tax credit for a 10-year period for facilities operating by the end of 2013. The wind production tax credit also would be expanded to allow renewable energy facilities that begin construction before the end of 2013 to claim the 10-year credit.
Senators from both parties said their efforts to get a tax extenders bill done are “a dress rehearsal,” “a prelude,” and “a first step” toward broader tax reform.
(For more, see: House bill would hasten US tax code overhaul)