WASHINGTON – Earlier this week, NACS joined with more than 525 like-minded trade associations, business development organizations, chambers of commerce and others, to urge Congress to pass important tax legislation during the remaining few weeks of the 113th Congress.

Traditionally, near the end of each year Congress passes a package of what are known as “tax extenders.” These are mostly tax credits that are invaluable to American businesses, particularly small businesses, but are in danger of expiring. Generally they are extended for a couple of years as a simple matter of course, garnering wide bipartisan support.  Unfortunately, partisan brinksmanship (pushing events to the brink of disaster to achieve the most advantageous outcome) resulted in many of these provisions either expiring at the end of 2013 or being in danger of expiring at the end of this year due to lack of action.

Luckily, we don’t expect a repeat of that congressional inaction this year. All indications are that outgoing House Ways and Means Committee Chairman Dave Camp (R-MI) and outgoing Senate Finance Committee Chairman Ron Wyden (D-OR) have been engaging in productive discussions on how to get many of these provisions extended (at least temporarily) for a period that would be retroactive for 2014 as well as moving forward into 2015.

While there is no such thing as “a done deal” at this point, NACS is optimistic that we’ll see an extension of important tax provisions such as the Work Opportunity Tax Credit, Bonus Depreciation, Section 179 expensing, the biodiesel blending tax credit and others, formally extended for a couple of years at least. 

We’re also still hopeful that many of these credits can be made permanent, avoiding the every year or every other year uncertainty surrounding them.  Chairman Camp tried to do so with a handful of them and Chairman Wyden indicated this would be the last extenders package he would do, preferring to deal with them on a more permanent basis.  We’re yet to see what the new chairmen will do but they both expressed an interest in attempting broad tax reform in the new Congress.