Congress is scheduled to return from recess on Sept. 8 and will have just a few work weeks left to address the 50-plus tax provisions that expired at the end of 2013.
Congress is likely to recess again well in advance of the Nov. 4, 2014, midterm elections and may be forced to address the expired provisions as part of a "lame duck" legislative session afterward. Important expired provisions include:
- Research credit
- Increased Section 179 expensing limits
- Bonus depreciation
- Subpart F exception for active financing
- Subpart F look-through rule for controlled foreign corporation income
- The reduced five-year holding period for built-in-gains tax after an S corporation conversion
- The S corporation basis reduction limit for charitable gifts
The Senate Finance Committee has approved legislation that would retroactively extend 51 of the expired provisions for two years. The Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act remains stalled in the Senate because Republicans and Democrats cannot agree on amendments. The House hasn't included all the provisions in a single bill, but has instead passed permanent extensions of many of the provisions separately. It appears most likely that Congress will eventually agree on a temporary package similar to what the Senate has proposed in the EXPIRE Act.
For a full description of the legislative outlook and a table detailing the status of every expired provision, see our most recent Tax Legislative Update.
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