Capitol Hill negotiations over tax policy continue and a list of NECA-supported items has the potential to make the cut. Some of the temporary tax breaks, known as extenders, would either be made permanent, extended for five years, or some extended for two years. Here is a breakdown of the items under consideration:
- The total value of the deal being considered is valued around $700 billion (typically, it has been around $40 Billion annually).
- Of most importance to NECA contractors, the deal could include a two-year delay of the Cadillac tax on high cost healthcare plans.
- Tax breaks that would finally be made permanent include all House-passed and Ways and Means-approved permanent items (research credit, permanent section 179 expensing and deductions for state and local sales taxes).
- A five-year extension of the bonus depreciation with a five-year phase out of the Production Tax Credit (PTC) and the Investment Tax Credit (ITC) for wind and solar.
- A two-year extension of Work Opportunity Tax Credit (WOTC), the Federal tax credit available to employers for hiring individuals from "certain target groups who have consistently faced significant barriers to employment."
- Lastly, there is serious talk about some sort of an international tax reform package.
At this point, discussions continue between the White House, and tax authors in the Senate and House. The larger news at hand is that Congress may finally be getting serious about ending the multi-year roller coaster ride of extenders, which does not give NECA contractors the predictability they need to run their businesses and reduce their tax burden. As we have endured over several years, all of these tax provisions are scheduled to expire at the end of the year. NECA is advocating for permanent passage of these provisions and will continue to report on the progress of these discussions.