WASHINGTON – Yesterday, the U.S. Senate nearly unanimously voted to consider the tax-extenders bill HR 3474, which the House already passed. The Senate might attach their EXPIRE Act as an amendment to HR 3474.

In early April, the Senate Finance Committee approved S 2260, the EXPIRE Act, that renewed several tax provisions that terminated on Dec. 31, 2013. Committee Chairman Ron Wyden (D-OR) said that would be the final tax extension proposal his committee would consider during his tenure as chairman. The Senate Finance Committee signed off on the EXPIRE Act, which has a few pertinent parts for NACS members, including:

• Extending the biodiesel blenders’ tax credit for two years;
• Extending the 30% investment tax credit for alternative vehicle refueling property (such as CNG or LNG pumps and other alternative fuel pumps) for two years;
• Adding “long-term unemployed” (those who have used up 26 weeks of unemployment benefits) to the catalog of eligible work-opportunity tax credit populations;
• Extending the 15-year accelerated cost recovery period for upgrading qualified retail facilities and restaurants for two years under Section 168 of the Internal Revenue Code.

Also, Sen. Patrick Toomey (R-PA) offered an amendment during the markup that would have repealed the biodiesel blenders’ tax credit, along with other alternative energy-related tax credits, arguing that these forms of energy should “compete on a level playing field” with more traditional energy sources. His amendment was rejected in a 6–18 vote.

Sens. Michael Bennet (D-CO) and Richard Burr (R-NC) put forth and then withdrew an amendment that would have modified the federal excise tax on LNG to be based on energy content rather than volume. Bennet argued that the current 24.3 cents per gallon excise tax for both LNG and diesel is unfair because it does not take into account the lower energy-per-gallon of LNG. He agreed to withdraw his amendment after Wyden reassured him that LNG excise tax parity would be discussed when the Finance Committee considers reforms to the federal Highway Trust Fund.

On the House side, Ways and Means Committee Chairman Dave Camp (R-MI) has announced that his committee plans to consider a series of individual bills, rather than an extenders “package.” Each House bill would make a certain expiring tax provision permanent, whereas the Senate package, for the most part, would just extend certain provisions for a few years. Last Friday, the House passed one such bill that would permanently extend an expiring corporate research and development tax credit (HR 4438). The bill passed 274–131 and was received in the Senate on Monday. The House is expected to move next on a proposal permanently extending the $500,000 cap on small business expensing under Sec. 179 of the Internal Revenue Code (HR 4457), but no specific floor schedule has been announced.