WASHINGTON (AP) – House Republicans are moving to pass a one-year extension of temporary tax breaks affecting millions of businesses and individuals.
Most of the more than 50 tax breaks expired at the end of 2013, so the extension would only run through the end of the month. However, it would allow taxpayers to claim the tax breaks when they file their 2014 tax returns.
The tax breaks benefit big corporations and small businesses, as well as commuters, teachers and people who live in states without a state income tax.
Senate Democrats and House Republicans were negotiating to make some of the tax breaks permanent. But talks faltered last week after the White House threatened to veto an emerging package, saying it too heavily favored big corporations over families.
A House GOP aide said the House could vote on the one-year package as early as this week. The aide was not authorized to speak publicly about the package ahead of an official announcement.
Congress routinely passes the package of temporary tax breaks every year or two, drawing complaints from businesses that it is hard to plan from year to year. A one-year package would bring more uncertainty next year.
Among the biggest breaks for businesses: A tax credit for research and development, an exemption that allows financial companies to shield foreign profits from being taxed by the U.S., and several provisions that allow businesses to write off capital investments more quickly.
The biggest tax break for individuals allows people who live in states without an income tax to deduct state and local sales taxes on their federal returns. Another protects struggling homeowners who get their mortgages reduced from paying income taxes on the amount of debt that was forgiven.
Other more narrow provisions include tax breaks for film and theater producers, NASCAR race track owners, manufacturers of electric motorcycles, commuters who use public transportation and teachers who spend their own money on classroom supplies.
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