2015: Schweikert Voted For Making Permanent Three Business Tax Extenders: Section 179 Expensing, Built-In Gains of S-Corporations And S-Corporation Charitable Contributions. In February 2015, Schweikert voted for making three business tax extenders permanent. According to Congressional Quarterly, the bill would have "ma[d]e permanent increased expensing limitations in the tax code that allow small businesses to deduct up to $500,000 of their equipment costs for a maximum of $2 million worth of property. The bill would make permanent the reduced recognition period for S corporations under which they could be taxed for sales of certain assets. It would make permanent a tax break for the charitable contributions of S corporations and allow them to qualify for the same tax exemptions that apply to individuals for charitable contributions." The vote was on passage. The House passed the bill by a vote of 272 to 142. The legislation was then used as a vehicle to extend the FAA, which became law. [House Vote 82, 2/13/15; Congressional Quarterly, 2/13/15; Congressional Actions, H.R. 636]
Tax Extenders Are A Series Of Tax Provisions That Congress Periodically Extends, But Only For A Year Or Two. According to Congressional Quarterly, "Congress has repeatedly had to address the renewal of the so-called 'extenders': non-permanent tax provisions such as the research and development tax credit for businesses that usually are renewed for only a year or two at a time. Lawmakers in both parties have expressed an interest in permanently addressing the extenders through a comprehensive overhaul of the tax code, under which individual extender tax policies would be re-evaluated and modified, eliminated or made permanent." [Congressional Quarterly, 2/6/15]
Built-In S-Corporations Allow "Small Businesses [...] To Be Treated As S-Corporations, Which Generally Pay No Corporate-Level Tax Like C-Corporations Do." According to Congressional Quarterly, "Small businesses under current law can elect to be treated as S-corporations, which generally pay no corporate-level tax like C-corporations do. Under S-corporations, taxes are taken into account on the individual income tax return of each shareholder, as income and losses 'pass through' to the shareholders. S-corporations, however, do face a corporate level "built-in gains tax" of up to 35% for any net recognized built-in gains that arose prior to their conversion from a C-corporation to an S-corporation. Under current law, this gains tax for converted S-corporations applies during a 10-year 'recognition period' that starts with the first day of the first tax year for which the S-corporation is in effect. [...] The measure provides a permanent five-year recognition period for built-in gains of an S-corporation, shortening the length of time from 10 years under which such small businesses could be taxed for sales of certain assets. Any built-in gain would not face built-in gains taxation if the fifth year in the corporation's recognition period, beginning with the first day of the first tax year for which the S-corporation is in effect, preceded the tax year. [...] JCT estimates that this provision would reduce revenues by $1.5 billion over 10 years." [Congressional Quarterly, 2/6/15]
Statement Of Administration Policy: Bill Would Make Permanent These Tax Extenders While Adding To The Deficit, But House Republicans Would Require Offsets To Polices That Help The Middle-Class Such As An Extension Of Emergency Unemployment Benefits. According to a Statement of Administration Policy, "The Administration supports making permanent expanded expensing for small businesses and offsetting the cost by closing tax loopholes as part of business tax reform that is revenue neutral over the long run. [...] However, as with other similar proposals, the Administration strongly opposes House passage of H.R. 636, which would permanently extend and expand the current expensing provisions for small businesses, as well as two other current provisions that offer tax breaks for S-corporations, without offsetting the cost, adding to long-run deficits. By making permanent expanded expensing for small businesses and tax breaks for S-corporations without offsets, H.R. 636 would add $79 billion to the deficit over the next ten years. House Republicans are making clear their priorities by rushing to make business tax cuts permanent without offsets when key tax credit improvements benefiting 16 million working families with children are scheduled to expire. They are also seeking to impose a double standard by adding to the deficit to continue and create tax breaks for businesses, after insisting on offsetting the cost of measures that help middle-class and working Americans, such as the extension of emergency unemployment benefits. [...] If the President were presented with H.R. 636, his senior advisors would recommend that he veto the bill." [Statement of Administration Policy, 2/10/15]
2015: Schweikert Voted For Making Permanent Three Business Tax Extenders: Section 179 Expensing, Built-In Gains of S-Corporations And S-Corporation Charitable Contributions. In February 2015, Schweikert voted for making three business tax extenders permanent. According to Congressional Quarterly, the bill would have "ma[d]e permanent increased expensing limitations in the tax code that allow small businesses to deduct up to $500,000 of their equipment costs for a maximum of $2 million worth of property. The bill would make permanent the reduced recognition period for S corporations under which they could be taxed for sales of certain assets. It would make permanent a tax break for the charitable contributions of S corporations and allow them to qualify for the same tax exemptions that apply to individuals for charitable contributions." The vote was on passage. The House passed the bill by a vote of 272 to 142. The legislation was then used as a vehicle to extend the FAA, which became law. [House Vote 82, 2/13/15; Congressional Quarterly, 2/13/15; Congressional Actions, H.R. 636]
Tax Extenders Are A Series Of Tax Provisions That Congress Periodically Extends, But Only For A Year Or Two. According to Congressional Quarterly, "Congress has repeatedly had to address the renewal of the so-called 'extenders': non-permanent tax provisions such as the research and development tax credit for businesses that usually are renewed for only a year or two at a time. Lawmakers in both parties have expressed an interest in permanently addressing the extenders through a comprehensive overhaul of the tax code, under which individual extender tax policies would be re-evaluated and modified, eliminated or made permanent." [Congressional Quarterly, 2/6/15]
S-Corporation Charitable Contributions Allows Each Shareholder To Take "Into Account The Pro Rata Share Of The S-Corporation's Charitable Contributions In Determining His Or Her Own Tax Liability." According to Congressional Quarterly, "If an S-corporation makes a charitable contribution of money or other property, each shareholder takes into account the pro rata share of the S-corporation's charitable contributions in determining his or her own tax liability. Under the U.S. tax code, the amount of the reduction is the shareholder's pro rata share of the fair market value of the contributed property, but Congress has regularly enacted temporary provisions allowing the reduction to be taken from the adjusted basis of the contributed property. [...] The measure provides that a shareholder's basis in S-corporation stock may be decreased by his or her pro rata share of the adjusted basis of any charitable contributions made by the S-corporation, rather than fair market value. It would apply to tax years beginning with 2015. JCT estimates that this provision would reduce revenues by $635 million over 10 years." [Congressional Quarterly, 2/6/15]
Statement Of Administration Policy: Bill Would Make Permanent These Tax Extenders While Adding To The Deficit, But House Republicans Would Require Offsets To Polices That Help The Middle-Class Such As An Extension Of Emergency Unemployment Benefits. According to a Statement of Administration Policy, "The Administration supports making permanent expanded expensing for small businesses and offsetting the cost by closing tax loopholes as part of business tax reform that is revenue neutral over the long run. [...] However, as with other similar proposals, the Administration strongly opposes House passage of H.R. 636, which would permanently extend and expand the current expensing provisions for small businesses, as well as two other current provisions that offer tax breaks for S-corporations, without offsetting the cost, adding to long-run deficits. By making permanent expanded expensing for small businesses and tax breaks for S-corporations without offsets, H.R. 636 would add $79 billion to the deficit over the next ten years. House Republicans are making clear their priorities by rushing to make business tax cuts permanent without offsets when key tax credit improvements benefiting 16 million working families with children are scheduled to expire. They are also seeking to impose a double standard by adding to the deficit to continue and create tax breaks for businesses, after insisting on offsetting the cost of measures that help middle-class and working Americans, such as the extension of emergency unemployment benefits. [...] If the President were presented with H.R. 636, his senior advisors would recommend that he veto the bill." [Statement of Administration Policy, 2/10/15]
2015: Schweikert Voted For Extending Permanently The Section 179 Expensing As Part Of A Larger Tax Extender Passage. In December 2015, Schweikert voted to extend permanently section 179 expensing. According to Congressional Quarterly, the legislation would have "ma[de] permanent the enhanced ability of small businesses to more quickly recover the cost of certain capital expenses under Section 179 of the tax code, which has been modified several times over the past few years. It also includes modifications to what type of equipment qualifies for this expensing." The underlying measure would "retroactively [renew] for the current 2015 tax year most of the expired provisions and further extends them for varying periods, including by making more than a dozen permanent and extending most others for two years (2015 and 2016)." The vote was on concurring in the Senate amendment to the bill with an amendment. The House passed the amendment by a vote of 318 to 109. The legislation was later combined with an Omnibus appropriations bill. The Senate passed the larger measure and the president signed it. [House Vote 703, 12/17/15; Congressional Quarterly, 12/16/15; Congressional Actions, H.R. 2029]
2015: Schweikert Voted For Making Permanent Three Business Tax Extenders: Section 179 Expensing, Built-In Gains of S-Corporations And S-Corporation Charitable Contributions. In February 2015, Schweikert voted for making three business tax extenders permanent. According to Congressional Quarterly, the bill would have "ma[d]e permanent increased expensing limitations in the tax code that allow small businesses to deduct up to $500,000 of their equipment costs for a maximum of $2 million worth of property. The bill would make permanent the reduced recognition period for S corporations under which they could be taxed for sales of certain assets. It would make permanent a tax break for the charitable contributions of S corporations and allow them to qualify for the same tax exemptions that apply to individuals for charitable contributions." The vote was on passage. The House passed the bill by a vote of 272 to 142. The legislation was then used as a vehicle to extend the FAA, which became law. [House Vote 82, 2/13/15; Congressional Quarterly, 2/13/15; Congressional Actions, H.R. 636]
Tax Extenders Are A Series Of Tax Provisions That Congress Periodically Extends, But Only For A Year Or Two. According to Congressional Quarterly, "Congress has repeatedly had to address the renewal of the so-called 'extenders': non-permanent tax provisions such as the research and development tax credit for businesses that usually are renewed for only a year or two at a time. Lawmakers in both parties have expressed an interest in permanently addressing the extenders through a comprehensive overhaul of the tax code, under which individual extender tax policies would be re-evaluated and modified, eliminated or made permanent." [Congressional Quarterly, 2/6/15]
Section 179 Expensing Allows "Small-Business Taxpayers The Option To Deduct From Their Taxes [...] The Cost Of Purchases, Up To Specified Limits, In The Year That Items Are Acquired Rather Than Recovering The Costs Of The Items Over Time Through Depreciation." According to Congressional Quarterly, "Section 179 of the tax code gives small-business taxpayers the option to deduct from their taxes (i.e., 'to expense') the cost of purchases, up to specified limits, in the year that items are acquired rather than recovering the costs of the items over time through depreciation. Current law also establishes a 'phase-out threshold,' and if businesses place more than that specified amount of property into service in a year then the amount that they are permitted to expense is reduced dollar for dollar, but not below zero. [...] In general, qualifying property is defined as depreciable tangible personal property that is purchased for use in the active conduct of a trade or business. The measure makes permanent the expensing limit of $500,000 under Section 179 of the tax code for certain qualifying property placed in service during the tax year, with the phase-out beginning when investments exceed $2 million. The expensing limitation and the phase-out would be indexed to inflation beginning with years after 2015. [...] JCT estimates that this provision would reduce revenues by $77.1 billion over 10 years." [Congressional Quarterly, 2/6/15]
Statement Of Administration Policy: Bill Would Make Permanent These Tax Extenders While Adding To The Deficit, But House Republicans Would Require Offsets To Polices That Help The Middle-Class Such As An Extension Of Emergency Unemployment Benefits. According to a Statement of Administration Policy, "The Administration supports making permanent expanded expensing for small businesses and offsetting the cost by closing tax loopholes as part of business tax reform that is revenue neutral over the long run. [...] However, as with other similar proposals, the Administration strongly opposes House passage of H.R. 636, which would permanently extend and expand the current expensing provisions for small businesses, as well as two other current provisions that offer tax breaks for S-corporations, without offsetting the cost, adding to long-run deficits. By making permanent expanded expensing for small businesses and tax breaks for S-corporations without offsets, H.R. 636 would add $79 billion to the deficit over the next ten years. House Republicans are making clear their priorities by rushing to make business tax cuts permanent without offsets when key tax credit improvements benefiting 16 million working families with children are scheduled to expire. They are also seeking to impose a double standard by adding to the deficit to continue and create tax breaks for businesses, after insisting on offsetting the cost of measures that help middle-class and working Americans, such as the extension of emergency unemployment benefits. [...] If the President were presented with H.R. 636, his senior advisors would recommend that he veto the bill." [Statement of Administration Policy, 2/10/15]