The Chairman of the US Ways and Means Committee has conducted a hearing to determine which “tax extenders” that expired at the end of 2013 should be permanently extended. There were more than fifty tax breaks expiring at the end of 2013 and in April 2014 the Finance Committee suggested that almost all of these should continue for a further two years. The cost of these tax breaks would add to the annual deficit.
Six of the tax extenders have now been chosen by the Chairman of the Ways and Means Committee for permanent extension. These include a credit in relation to research and development costs; increased expending in respect of the deduction for the cost of qualifying equipment; and rules on basis adjustments to the stock of corporations that make contributions to charity in the form of property. By continuing this tax relief into the future the US aims to continue to provide incentives to business without unduly increasing the fiscal deficit.
