Congress has allowed a number of tax credits to expire before renewing them every two years, in a process known as the “tax extenders.”
Some of these tax breaks have been renewed regularly for over 30 years. After some wrangling in the House, the Ways and Means Committee voted to make six expired tax breaks permanent April 29, according to Market Watch. This move would add $310 billion to the deficit over the next 10 years if approved by the Senate, though analysts explained that this is unlikely to happen before the November elections.
In an interesting role-reversal, Democrats are arguing that this move is fiscally irresponsible, as it is not offset by spending cuts or tax increases, Bloomberg explained. The left also feels that it is unfair that businesses be given tax benefits that aren’t offset when Republicans have maintained that extending unemployment benefits must be covered.
“To say that Republican action today is hypocritical is a serious understatement,” said Representative Sander Levin of Michigan, the top Democrat on the Ways and Means Committee, according to the news source.
Ways and Means Committee Chairman Dave Cam, R-Mich., explained that they started with bills that have had bipartisan sponsors in the past, but he hopes to consider other expired provisions later this year, according to Bloomberg. He declined to say which he wants to make permanent, but the largest are those for bonus depreciation for capital expenses and the right to deduct state sales taxes. Camp plans to retire from Congress when his term ends.
Among the bills that the panel voted to make permanent were the research credit, a rule that allows small businesses to write off capital expenses, the active financing exception, and the look-through rule, the news source reported.
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
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