(7-21-2015) The Senate Finance Committee this afternoon approved by a 23-3 vote a $95 billion tax extenders package that would retroactively renew 52 expired tax provisions – including the IRA Charitable Rollover – through the end of 2016. This vote marks the latest step in Congressional efforts this year to revive the Rollover, which lapsed once again at the end of 2014.
Prior to the Finance Committee vote, several committee members filed amendments to the legislation put forth by Finance Committee Chairman Orrin Hatch (R-UT), which would have made the IRA Rollover a permanent part of the tax code. Those amendments ultimately did not receive an up-or-down vote as lawmakers wanted to quickly adopt the underlying extenders legislation.
During the hearing Chairman Hatch did, however, comment on the possibility of making select extender provisions permanent this year. He said, "I know that most of us here on the committee share the desire to reform our nation’s broken tax code. And, in my view, one of our goals in tax reform should be to create more permanence in our tax system so that individuals, families, and businesses don’t have to wonder whether the tax code is going to change from year to year. Toward that end, I believe we should be working to make a number of these tax extender provisions permanent. The House has passed several bills that would do just that, and I think there are enough votes here in the Senate to do the same, at least with regard to some of the more important provisions. However, for the sake of making this markup less contentious and to ensure we can more quickly provide much needed relief to taxpayers, I’ve agreed to defer litigating the issue of permanence until a later time. But, make no mistake, as Chairman of this committee, my goal is to see many of these provisions made permanent."
The Finance Committee-approved legislation will now move to the full Senate for consideration. It is possible the legislation is attached to an unrelated highway funding bill that is slated for a vote this week. Regardless, Chairman Hatch has indicated he would prefer the Senate approve extenders legislation before the August recess.
Once the Senate acts, that legislation will have to be reconciled with the House approach on extenders. As Chairman Hatch noted (see above), the House has passed several bills this year that would make various extenders permanent. In particular, the House passed the America Gives More Act (H.R. 644) by a veto-proof majority back in February, which would make the Rollover permanent, among other provisions.
PPP will continue to monitor any legislation developments on the IRA Charitable Rollover.