The fate of lapsed and expiring business tax breaks, including credits for corporate research and wind energy, remains “in flux” and will be addressed alongside the rest of the fiscal cliff, said Representative Dave Camp, the chairman of the House Ways and Means Committee.
Camp’s committee has been studying the dozens of temporary breaks in the U.S. tax code with the aim of deciding after the Nov. 6 election which ones to keep and which to jettison. He said he had some sense of what he wants to do, though the issue must wait for resolution of other tax and spending issues facing Congress this year.
“Frankly, we’ve got to have the president have some substantive meetings with our leadership, and that hasn’t happened yet,” Camp, a Michigan Republican, told reporters in Washington today. “There’s really not much we can do right now.”
Companies including General Electric Co. (GE:US), Whirlpool Corp. (WHR:US), Caterpillar Inc. and Intel Corp. rely on tax breaks that are in the package. Some of the breaks expired at the end of 2011 and others will lapse at the end of this year.
The list of breaks includes a benefit for multinational financial services companies, a credit for short-line railroads and accelerated depreciation for motorsports facilities. Breaks for individuals are also on the list, including a deduction for teachers’ out-of-pocket expenses and the option to deduct state sales taxes.
The Senate Finance Committee voted 19-5 on Aug. 2 to back a $205 billion measure that would extend most of the breaks through 2013. That measure hasn’t reached the Senate floor for a vote.
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