Senate Approves 2014 Tax Extenders Bill
The U.S. Senate on Tuesday night passed “The Tax Increase Prevention Act of 2014” (H.R. 5771), a tax incentives bill that retroactively extends for one year–through the end of 2014–most temporary tax provisions that expired at the end of 2013. The bill was passed with a vote of 76-16 and will become law when signed by President Barack Obama. The House passed the legislation 378-46 on Dec. 3.
The bill includes several provisions of interest to the tax credit community, including an extension of the 9 percent floor for low-income housing tax credit (LIHTC) allocations made for non-federally subsidized buildings before Jan. 1, 2015; an extension through the end of 2014 for the new markets tax credit (NMTC); and an extension of the production tax credit (PTC) for wind and certain other renewable energy sources for facilities that begin construction before the end of 2014. The legislation also includes an extension of 50 percent bonus depreciation to property acquired and placed in service during 2014 (and 2015 for certain properties with a longer production period).
Tune into the Dec. 23 episode of the Tax Credit Tuesday podcast for more information.