The Senate Finance Committee announced that it will hold a July 21st markup of legislation extending the New Markets Tax Credit and dozens of other expired tax breaks.
The bill extends the New Markets Tax Credit and 51 other tax breaks for two years. The bill extends the New Markets Tax Credit through 2016, permitting a maximum annual amount of qualified equity investments of $3.5 billion. A two year extension of this provision is estimated to cost $1.844 billion over 10 years.
The bill also includes extensions of the research and development credit, the state and local tax deduction and an extension of reduction in the S corporation recognition period for built-in gains tax, among others. In all, the bill is expected to cost $95 billion over 10 years, according to a Joint Committee on Taxation estimate provided by the committee.
The House has yet to move on renewing the extenders bill, but Ways and Means Committee Chairman Paul D. Ryan has said he wants to complete a bill in the fall.
For more information, see the Description of the Chairman’s Mark of a Bill to Extend Certain Expired Tax Provisions, the Summary of Provisions in the Chairman’s Mark of a Bill to Extend Certain Expiring Tax Provisions and the Estimated Revenue Effects of the Chairman’s Mark of a Bill to Extend Certain Expiring Tax Provisions.