House Passes Bill Extending Expiring Tax Provisions for One Year
Late yesterday, the House passed the Tax Increase Prevention Act of 2014 (H.R. 5771), which would extend for one year only, through 2014, a number of expired tax relief provisions, including the 9 percent minimum Housing Credit rate. The House-passed bill also extends through 2014 the New Markets Tax Credit and a provision exempting homeowners from income tax liability on mortgage debt forgiven or cancelled that would otherwise be taxable.
The House-passed bill does not include the establishment of the 4 percent acquisition Housing Credit minimum rate, which the Senate Finance Committee included in the extender bill it approved earlier this year. The Finance Committee bill extended all expiring provisions for two years.
As we reported during the December 2 NCSHA federal liaisons conference call, House and Senate negotiators earlier this week abandoned their effort to agree upon a tax bill that would have made permanent some expiring tax provisions while extending the rest for two years, after the White House threatened to veto it for favoring tax breaks for corporations over those for working families.
Finance Committee Chairman Ron Wyden (D-OR) and other senators have been trying since to come up with a way to extend as many expiring tax provisions as possible for two years, but Wyden has apparently now concluded that it is not possible to reach agreement with the House and the Administration on such a plan.
The Senate is now expected to approve the House-passed bill before it adjourns for the year sometime between December 12 and 19. The President has indicated he will sign it