House Tax Writing Committee Passes Extension of Sales Tax Deduction, Other Taxes
The Ways and Means Committee voted this week to extend a number of expiring tax benefits, including the deduction for state and local sales taxes. The bill would extend through 2008 the ability for taxpayers to take an itemized deduction for state and local sales tax in lieu of the deduction permitted for income taxes.
In addition, the bill extends the 15 year cost recovery for leasehold and restaurant improvements, which without the change will revert to a 39 year recovery period. The shorter period should encourage property owners to more frequently improve their property. Expensing of hazardous or “brownfield” site cleanup is extended for one additional year, while the deduction for energy-efficient commercial buildings is extended for five years, through 2013, which should encourage additional green building projects.
Next, the bill heads for a full House vote. Meanwhile, the Senate plans to begin work on similar legislation in June, but may also include a one year “patch” of the alternative minimum tax to ensure it does not affect more taxpayers than it did last year.
For more information, contact Heidi Blumenthal at (202) 547-8892 or firstname.lastname@example.org.
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