Pending 2010 Tax Changes
12/31/2009
With the Senate's focus on health care reform, tax legislation was delayed and many tax provisions will expire before they reconvene in January. The hope is that legislation will be passed quickly to restore the expiring provisions, and the top Democrat and Republican on the Senate Finance Committee, Sen. Max Baucus (D-MT), chairman of the committee, and Sen. Charles Grassley (R-IA), have confirmed their intention to address the extension of expiring tax provisions “early in the next year.”
The Senate will consider a bill similar to the Tax Extenders Act of 2009, which has passed in the House, and would provide individuals and businesses with approximately $31 billion in tax relief in 2009 by extending for one year (through 2010) more than 40 provisions that are scheduled to expire at the end of 2009. This $31 billion in tax relief includes more than $5 billion in individual tax relief and more than $17 billion in business tax relief. The Tax Extenders Act of 2009 also extends more than $7 billion of tax provisions that encourage charitable contributions, provide community development incentives, provide tax relief in the event of a Presidentially-declared disaster, and support the deployment of alternative vehicles and alternative fuels. The Tax Extenders Act of 2009 provides this relief without adding to the deficit.
If you would like further information about this topic, contact Tom Dougherty at 612-336-9330 or tdougherty@lommen.com.