Before adjourning for a weeklong recess for Presidents’ Day, the U.S. House of Representatives approved two bills extending some tax credits that had expired at the end of 2014. Follow me after the jump for key points of the legislation and how the Iowans voted.
The “Fighting Hunger Incentive Act” passed on February 12 by 279 votes to 137 (roll call). Dave Loebsack (IA-02) was among 39 Democrats who voted yes, along with almost the whole Republican caucus, including Iowans Rod Blum (IA-01), David Young (IA-03), and Steve King (IA-04). Cristina Marcos reported for The Hill,
Democrats largely support the underlying tax breaks. But the vote fell generally along party lines, 279-137, because many Democrats don’t think the credits should be made permanent without offsets. […]
The measure extends three tax credits: the deductions for contributions of food inventory, allowing tax-free distributions from individual retirement accounts for charitable purposes, and the deduction for contributions of conservation easements to preserve land. […]
Republicans said making the tax credits a permanent part of the tax code, rather than renewing them every year, would provide more certainty. […]
Democrats said that Congress should first establish how it will pay for extending the tax credits on a permanent basis.
On Friday, 33 Democrats joined almost all the Republicans to pass America’s Small Business Tax Relief Act of 2015 by 272 votes to 142 (roll call). Again, all four Iowans were in the yes column. Cristina Marcos summarized the key provisions:
Approved 272-142, the bill would extend three tax breaks, including one known as the Section 179 credit that allows businesses to write off certain expenses. […]
Democrats largely support renewing the tax breaks, often called “extenders” because of the need to renew them regularly. But Democrats objected the GOP proposal of doing away with the expiration dates without offsetting the cost. The Joint Committee on Taxation estimates that the bill would cost $79 billion over 10 years.
More than 50 tax breaks, including the ones in Friday’s bill, expired at the end of 2014.
The Section 179 credit allows businesses to write off up to $500,000 of investments in new property and equipment, including computer software, each year.
As usual, many self-styled deficit hawks don’t care about adding to the deficit through tax cuts. The White House has said President Barack Obama would veto these bills, citing a Republican “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.”