February 11, 2014

Wyden poised to address tax extenders

Feb. 12, 2014 – As the new chairman of the Senate Finance Committee, Sen. Ron Wyden, D-Ore., will be at the center of unfinished business before the powerful tax writing committee, including a package of tax extenders that expired at the end of 2013.

The previous committee chairman, Democrat Max Baucus of Montana, submitted a letter of resignation from the Senate on Monday in preparation for his new post as ambassador to China. He was confirmed for that post Feb. 6.

Politicoreports that Wyden's agenda – addressing the tax extenders outside of larger corporate tax reform – is at odds with that of his House counterpart, Ways and Means Committee Chairman Dave Camp, R-Calif. "You're not going to do reform in the next 20 minutes," Wyden was quoted saying, adding that a one-year extension could "serve as a bridge for broader reform."

NAFCU continues to hear that credit unions' exemption from federal corporate income tax is safe. Still, the association will keep a watchful eye on other changes that may have an impact on credit unions, including through action on the recently expired tax extenders that Wyden plans to address.

One such expired tax extender was a tax break benefiting underwater homeowners who received principal forgiveness mortgage modifications. This is one of the more than 50 deductions and credits that expired at the close of 2013.