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House Passes 1-Year Extenders Bill on Charitable Rollover; Senate Yet to Act

Tuesday, December 9, 2014

An update from the Council on Foundations: 

On Wednesday, the House voted 378 to 46 to advance a bill extending the expired tax extenders provisions for 1 year, including the IRA charitable rollover and the enhanced deductions for conservation easements and food inventory donations.
The House-passed bill did not include the private foundation excise tax simplification and the extension of the charitable giving deadline to April 15th—which were included in the America Gives More Act (H.R. 4719) passed by the House this summer. 

The Council on Foundations anticipated this outcome after recent developments made clear that neither the Senate nor the White House would accept any provisions in the package other than the 55 tax extenders. While this is unfortunate, passage of this bill is a promising step towards a final package that extends the charitable tax extender provisions for 1 year, retroactive for tax year 2014. 

The Senate is now expected to pass the House bill. Senate Finance Chairman Ron Wyden (D-OR) is disappointed that a longer extension is off the table at this point. While it was initially reported that the Senate might want to extend some of the provisions for longer than one year, they've receded from that plan. A spokesperson for Wyden stated: "We are disappointed that at this point there doesn't appear to be a procedural path forward." The Council is also disappointed that a more productive and permanent plan will not be reached. 

In a breaking news alert last week, we told you about the initial deal reached by House and Senate negotiators which would have permanently extended the IRA charitable rollover and the conservation easement and food inventory provisions. This deal broke down after the White House signaled that the President would veto it because of the cost of the bill. 

Congress has continued to signal its strong, unwavering support for the IRA charitable rollover and the other charitable tax extenders. The rollover, along with the conservation easement and food inventory provisions, are among 10 provisions out of 55 that Congress identified to make permanent in the initial deal. Those same charitable tax extenders are part of the America Gives More Act (H.R. 4719), which the sector is urging Congress to pass as part of the deal. 

The Council on Foundations is encouraged that the inclusion of these permanent provisions in the negotiated deal demonstrates that they remain a priority for members of Congress – a very positive sign as we look ahead to the next Congress and continued talks of how to reform the tax code moving forward.

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