On December 16, the Senate finally passed H.R. 5771 which restores for only the 2014 tax year the package of expired charitable tax provisions. The provisions include the expansion of the food donation tax deduction to include small businesses (non c corporations), the IRA charitable rollover and the enhanced deductions for donations of land conservation easements and food inventory. Despite a number of last-minute attempts to reach a longer-term agreement, including making permanent these three giving incentives, the full package will expire again on January 1, 2015.
Among the 16 senators who opposed the bill was Senate Finance Committee Chairman Ron Wyden (D-OR), who told reporters that the vote brought “a recognition that what’s really needed is to pass smart tax policy that doesn’t just offer incentives for behavior that’s already taken place.” Fellow Finance panelist Sen. Rob Portman (R-OH) shared this opposition to the measure, noting that “by the time we get back here, it will already be expired for a week or two.” Senator Thune also made several remarks about the lost opportunity to pass HR 5806, which would have made all three charitable giving incentives permanent.
Congress is expected to convene on January 6, 2015, with Republicans having majority control in both chambers. Neither the House nor the Senate has commented on a timeline to reconsider the temporary tax provisiosn in the new Congress.
We will be providing template “thank you” and “disappointment” letters for Member of Congress that supported or opposed HR 5806 – please consider using them to send to your Members of Congress. We will need to continue to engage them in 2015 to move this forward!
As always, thank you for your active engagement and support on this issue in 2014. We would not have achieved the success we did without your continued engagement and support on this issue.