House Moves Tax Extenders Legislation; Further Outlook Uncertain
This week the House of Representatives approved a bill that would make permanent an enhanced incentive for donations of conservation easements and would also make permanent the charitable deduction for contributions of food inventory. With the passage of H.R. 4719, the “America Gives More Act,” the House has now voted to renew eight of the expired tax extenders, including the research credit, increased Section 179 expensing, and bonus depreciation. The permanent provisions are not paid for and are not expected to pass the Senate. The White House has said President Obama would veto H.R. 4719 because the costs will increase the deficit.
Temporary Patch to Road Funding Moves Out of House, Gains White House Support
Most observers think that one of the few “must do” items on Congress’s agenda ahead of the August recess is shoring up funding for the highway trust fund. U.S. Department of Transportation officials estimate that federal money for road infrastructure and transit projects across the country will start drying up by the middle of August. Funding of the trust fund has actually been a looming problem for several years. It has been hit by a double whammy–the federal gas tax was last raised in the early 1990s, leading inflation to erode the fund’s purchasing power, and more fuel efficient vehicles have entered the marketplace, meaning that motorists are paying less in taxes per mile driven.
While a permanent fix, in the guise of a new highway bill, will be eventually needed, the political will to pass what would be a heavy legislative lift ahead of mid-term elections appears to be absent. The House of Representatives this week passed a measure to temporarily push back the day of reckoning. H.R. 5021 was approved by a 367-55 vote this week, providing $11 billion for the highway trust fund, enough to fund road projects through May 2015. To offset the cost, the bill would move back the deadline for single-employer pension plans to be fully funded, leading to increased tax revenue.
Ahead of the vote, the Administration indicated that it would reluctantly support the measure as a short-term fix to the problem. With such support, the outlook for the bill looks positive in the Senate, which could take the legislation up as early as next week.
House Appropriations Bill Would Prevent Funding for EPA Regulations; Groups Send Letter Urging T&I WOTUS Bill Markup
The House Appropriations Committee this week approved, by a vote of 29-19, its fiscal year (FY) 2015 interior and environment funding bill. Several amendments accepted during markup would prevent the Environmental Protection Agency (EPA) from using any appropriated funds to implement a number of controversial new environmental regulations; this would include EPA’s new proposal to redefine “waters of the United States” (WOTUS) in such a way as to greatly expand federal jurisdiction over agriculture and other industries.
The timeline for House action on the appropriations bill remains up in the air at this point. In addition, it remains difficult to see how a bill with such restrictions on the EPA could make it through or be conferenced with the Senate, let alone how it could overcome an almost-certain veto.
In other WOTUS related news, NCFC joined with the other members of the Waters Advocacy Coalition in sending a letter to House Transportation & Infrastructure Committee Chairman Bill Shuster (R-Pa.) and Ranking Member Nick Rahall (D-W.V.) supporting H.R. 5078, the Waters of the United States Regulatory Overreach Protection Act, and urging swift action to consider and approve the measure. H.R. 5078 was introduced last week by Shuster and Rep. Bob Gibbs (R-Ohio), chairman of the Subcommittee on Water Resources and the Environment. The bill would require EPA and the U.S. Army Corps of Engineers to conduct a transparent, representative and open consultation with state and local officials to develop a consensus on those waters that should be under federal jurisdiction.
Upcoming Events:
- Fall NCFC Executive Council Meeting—September 25 & 26, 2014—NCFC offices, Washington, D.C.
- LTA Subcommittee Chairs/Vice Chairs Meeting—October 2 & 3, 2014—Four Seasons Hotel, Austin, Texas
- NCFC Human Resources Conference—October 23-24, 2014—Hyatt Regency O’Hare, Chicago, Ill.
- Government Affairs Committee Meeting—November 12-14, 2014—Benson Hotel, Portland, Ore.
- 86th NCFC Annual Meeting—February 11-13, 2015—Paradise Point Hotel, San Diego, Calif.