Following the House vote on December 3, 2014, the Senate on December 16, 2014, by a vote of 76 to 16, passed the Tax Increase Prevention Act of 2014 (H.R. 5771), an extension of a number of provisions that had expired at the end of 2013. The extension is just for one year, through 2014. Included in the legislation are over 50 individual and business provisions that had expired. These include, for individuals, the sales tax deduction, IRA distributions to charity, the above-the-line deductions for tuition and fees and educator expenses, and the exclusion for discharges of principal residence indebtedness. For businesses, it includes the research credit, bonus depreciation, Code Sec. 179 expensing, the work opportunity credit, and 15-year amortization of leasehold improvements. A few expired provisions were not included in the legislation, including provisions with respect to a health care tax credit related to the Trade Assistance Act and tax breaks for certain energy-efficient vehicles.
Also included is legislation to create tax-favored accounts for persons with disabilities. There are no offsetting revenue raisers for the extenders, but revenue raisers are included to offset the cost of these new accounts. The legislation also includes a set of technical corrections to prior tax legislation. The legislation now moves to the President for his expected signature.