(12-16-2015) Late last night Congressional leaders formally unveiled a $650 billion tax bill that had been the subject of weeks-long negotiations, and PPP is pleased to report this legislation would make the IRA Charitable Rollover provision a permanent part of the tax code.
The legislation, massive in its size, scope and estimated cost to the federal government, is dubbed the “Protecting Americans from Tax Hikes Act of 2015,” and was released in the form of a House amendment to a Senate amendment to an unrelated spending bill. The legislation includes a number of important tax provisions, several of which would affect charitable giving, but most notably would retroactively reinstate the IRA Charitable Rollover provision originally enacted into law in 2006 for all of 2015 and remove any expiration date on the provision, thereby permanently extending the Rollover into the future.
The tax bill was drafted and negotiated in a bipartisan manner with significant buy-in from Senate Democrats and the White House, and Congressional leaders are hopeful the legislation will be able to garner enough votes to pass the House, survive a filibuster in the Senate, and ultimately win the support of President Obama, although there is resistance to the legislation among Democrats in the House and several factions of Republicans that could ultimately complicate passage. The House could vote on the tax bill as early as Thursday morning, sending the legislation over to the Senate for quick consideration.
PPP will continue to update members as this important tax bill progresses through Congress and will provide a full debrief on the legislation and the current state of play in Washington as it relates to charitable giving issues when and if the legislation is signed into law.