Houses Passes AMT Patch, Small Extenders, Hurricane Recovery Bills

The House, on December 7, 2005, approved three pieces of tax legislation by unanimous or near unanimous votes.

The Stealth Tax Relief Bill of 2005 (H.R. 4096) would extend the increased AMT exemption amount through 2006 and index the figure for inflation.

The Tax Revision Bill of 2005 (H.R. 4388) includes one-year extensions for including combat pay as earned income under the earned income tax credit, the cover over of tax on distilled spirits, the authority for undercover operations, and the disclosures of certain tax return information. The bill would also extend the definition of domestic production gross receipts under Code Sec. 199 to include activities in Puerto Rico.

The Gulf Opportunity Zone Bill of 2005 (H.R. 4440) would establish a gulf opportunity zone and extend certain Hurricane Katrina tax relief benefits to Hurricane Rita and Wilma.

It is unclear whether the Senate will also address these as separate pieces of legislation. Many of these provisions were already included in the Senate-passed version of the larger tax reconciliation bill. The House has not yet passed its version of the tax reconciliation bill and, even if passed, it is looking unlikely that a conference could resolve differences between the two versions of the legislation before adjournment for the year.

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Wolters Kluwer Tax and Accounting

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