Chamber Weighs In on Tax Extender, AMT Bills
The Senate and House wrangled over legislation that would extend expiring business tax breaks, including the research and development credit, provide new incentives for renewable energy, and curtail the advance of the alternative minimum tax (AMT). The two chambers were split on whether the tax incentives should be offset with spending cuts or tax increases.
The Senate passed its bill on September 23 by a vote of 93-2. The $150 billion bill includes a one-year patch to the AMT with no offsets. It contains new incentives for renewable energy and conservation, but they are offset with revenue increases that would hit the oil and gas industry. The bill also contains a two-year extension of the expiring business tax breaks as well as tax benefits for disaster victims. Also included is a requirement that employers offer mental health benefits on par with medical benefits . These provisions would be partially offset by delaying beneficial tax rules for offshore corporations and extending the Federal Unemployment Act or FUTA, a temporary payroll tax put in place in 1976 to cover a shortfall in the federal unemployment trust fund.
The House broke up the Senate-passed bill and passed the AMT patch without offsets on September 24. Two days later, it passed a second, more controversial $62 billion bill to extend the business tax credits with the same offsets included in the Senate bill.. Both bills were sent back to the Senate for a final vote.
The Chamber sent two letters up to the Hill to express its support for extending the expired and expiring business tax provisions and implementing new clean energy tax incentives. However, the Chamber opposes offsets such as punitive oil and gas taxes, delayed deferred compensation rules, and extension of the FUTA.
"The Chamber appreciates the House efforts to extend much needed business tax provisions but remains concerned that this legislation would permanently increase taxes on businesses," Chamber Executive Vice President of Government Affairs Bruce Josten wrote in a September 24 letter to members of the House.
