Highlights from Tax Extenders Hearing

Published by Michael Novogradac on Friday, April 27, 2012 - 12:00am

Today Congressman Pat Tiberi, Chairman of the Subcommittee on Select Revenue Measures, held a hearing on tax extenders. The hearing was intended to provide a formal opportunity for the subcommittee to hear about the merits of extending – or not extending – expired or expiring tax provisions.

Here are some highlights: 

  • Chairman Tiberi, “ … most of the temporary provisions were made temporary not for policy reasons, but because of arcane budget or Senate rules … With a few exceptions, temporary tax provisions that are worthy should be made permanent …”  
  • Ranking Member Richard Neal: “Many of the tax provisions that expired in 2011 are priorities of mine – for example, the New Markets Tax Credit and Build America Bonds are very important. The NMTC is designed to stimulate investment and economic growth in low-income communities that are traditionally overlooked by conventional capital markets. And we’ve seen the results in all of our districts … We need to extend the NMTC … Furthermore, the Production Tax Credit for on-shore wind and the Investment Tax Credit for off-shore wind are important and we should extend both provisions.”  
  • Rep. Mike Thompson: “The Production Tax Credit for wind expires at the end of December and we don’t have until the end of December to deal with this. Business owners, manufacturers, energy developers, governments, community groups – they’re already making decisions on this very important part of our energy future today. We’re losing jobs today …”  
  • Rep Erik. Paulsen: “I am also a co-sponsor of the New Markets Tax Credit … these credits go to areas that otherwise would not see investment or benefit businesses located in low-income communities. In my district alone the credits have created about 150 jobs. The credit has been extended three times and I believe it should be extended again.” 

These comments are just a sample from the hearing. I will report the discussion in more detail in next week’s Tax Credit Tuesday podcast. So tune in on May1 to learn more.