For a few hours last week, it appeared that there was a bipartisan agreement on expiring tax provisions, but shortly after press reports on the deal, the agreement fell apart under threat of a White House veto. In a surprise to many, about 10 expiring tax provisions would have been made permanent under the agreement, including the research credit and expanded section 179 expensing. The agreement would have extended almost all the remaining expiring tax provisions through 2015. A notable exception is that the wind production tax credit would have been phased out.
Almost as soon as news leaked about the potential deal, Administration officials announced that the President would issue a veto if the agreement was passed into law. The Administration was concerned that temporary expansions of the earned income tax credit and child tax credit were not included on the list of permanent provisions. Others also cited the overall cost of the legislation, more than $400 billion over ten years, as an issue.
Following the agreement’s breakdown, BNA Bloomberg is reporting that the House of Representatives may vote on a one-year extension through 2014 for all expiring provisions.