Summary of a Legislative Update sent from the national Council on Foundations:
Last week, the House Ways and Means Committee approved Chairman Charles Rangel’s (D-NY) fully offset, $56.6-billion package of expired and expiring tax provisions. The Energy and Tax Extenders Act, H.R.6049, combines one-year extensions of tax provisions that expired in 2007 and will expire in 2008.
Included in the bill is an extension of the IRA charitable rollover, at $465 million over 10 years. Other provisions (and their cost over 10 years) include the enhanced charitable deduction of food inventory ($71 million), book inventory ($31 million), and computers ($260 million), as well as the modification of the tax treatment of certain payments under existing arrangements to controlling exempt organizations ($35 million).
The full House is expected to vote on H.R.6049 before Memorial Day. S.2886, the broader Senate version that extends expired and expiring tax provisions through 2009, will not be marked up in the Senate Finance Committee until June, according to Chairman Max Baucus (D-MT). It is important to note that the House bill includes one-year extensions while the Senate bill includes two-year extensions.
Although these and other differences will have to be worked out in conference, a final bill is expected to be sent to the President sometime after the November 2008 election.
