On Tuesday, the House Ways and Means Committee met to decide the fate of six business tax breaks that had bi-partisan support. Although Republicans do not have a plan on how the cost of those tax breaks will be offset, they voted to make the tax breaks permanent, ending the cycle of relapsing credits for these breaks that have traditionally been later reinstated.
Bloomberg Businessweek reports that the tax breaks which were extended and made permanent include the research credit, which has existed since 1981.
Also approved is the active financing exception, supported by GE and many banks, which allows companies to defer U.S. taxation on income they earn from finance businesses outside the country.
The committee also endorsed a rule that lets small businesses write off some capital expenses and another that allows multinational companies to move money easily between subsidiaries overseas.
We’ll keep you updated as this bill and others like it work their way through the process.