On December 3, 2014, by a vote of 378 to 46, the House passed H.R. 5771, an extension of a number of provisions that had expired at the end of 2013. The extension is just for one year, through 2014. Included in the legislation are over 50 of the most common individual and business provisions that had expired at the end of 2013. These include, for individuals, the sales tax deduction, IRA distributions to charity, the above-the-line deductions for tuition and fees and for educator expenses, and the exclusion for discharges of principal residence indebtedness. For businesses, it includes the research credit, bonus depreciation, Code Sec. 179 expensing, the work opportunity credit, and 15-year amortization of leasehold improvements. Not included in the House-passed bill are provisions with respect to a health care tax credit and a tax break for electric motorcycles.
The House also passed legislation (H.R. 647) to create tax-favored accounts for disabled persons. Both bills are expected to be taken up quickly by the Senate. Pressure is on Congress to act quickly in order to avoid disrupting the tax filing season for 2014 tax returns.