May 16, 2014

Senate may address tax extenders package this week

May 19, 2014 – Legislation that addresses a set of provisions known as "tax extenders" that expired last year-end and was approved by the Senate Finance Committee last month, may be up for Senate discussion this week, according to reports.

The tax-cut package, which made no changes to any provisions that affect credit unions, hit a snag last week during Senate discussion, but Senate Finance Chairman Ron Wyden, D-Ore., toldThe Hill on Thursday that he hoped to bring the bill back to floor this week.

There are more than 50 deductions and credits that expired at the close of 2013. The extenders bill, "Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act," includes tax breaks for mortgage insurance premiums and a tax break benefiting underwater homeowners who received principal forgiveness mortgage modifications.

Senate Finance Committee Chairman Ron Wyden, D-Ore., first announced his plans to address expired tax extenders as a "bridge to broader reform" in February. House Ways and Means Committee Chairman Dave Camp, R-Mich., took a different approach and announced plans to determine which tax extenders should be made permanent in a move toward broad tax reform.

NAFCU is keeping a watchful eye on changes that may have an impact on credit unions, including through actions on the expired tax extenders, though the association is hearing from lawmakers that credit unions' exemption from federal corporate income tax is safe.