Extenders vote possible in Senate

A vote on the House-passed extenders bill known as the Tax Relief for American Families and Workers Act (H.R. 7024) is possible this summer. Senate Majority Leader Chuck Schumer, D-N.Y. told the Senate in remarks made June 18 that he continues to work with Senate Finance Committee Chair Ron Wyden, D-Ore., on the legislation, though it’s unclear how much negotiations have progressed with key Senate Republicans over their objections to the bill.

Democrats up for re-election in key battleground states are reportedly pushing to hold a vote due in part to their support of the temporarily expanded child tax credit included in the bill. The legislation would also restore Section 174 research and experimentation expensing, the more generous calculation of the 163(j) limitation on the net interest deduction that was phased out in tax year 2022, and full bonus depreciation of capital expenditures. While a Senate vote remains possible, the longer the bill waits, and the closer a vote takes place to the election, the less likely the legislation is to pass, due to campaign considerations and the promise of addressing similar policy changes in the anticipated broader tax debate next year.

However, some Republicans could be swayed by their support for the underlying legislation; if 10 or more vote for the bill over the current objections of senior Senate Finance Republican Sen. Mike Crapo, R-Idaho, or if he drops his opposition, then the bill could become law before the end of the year. Currently the odds of that happening still appear low. 

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