NATSO, Others Continue to Pursue Tax Extenders

Incoming Senate Finance Chairman Chuck Grassley (R-Iowa) told Politico that there is "very little interest in the [House] Ways and Means Committee" for tax extenders, "except maybe for a couple," including the biodiesel tax credit. 

"We've got about 25 extenders that are expiring and very little interest in the Ways and Means Committee for extending them except maybe for a couple," such as one dealing with biodiesel, Sen. Grassley told reporters. 

Sen. Grassley added that Congress is getting "very timid on tax credits for alternative energy" because of the abundance of petroleum and cheapness of natural gas. 

At the same time, groups backed by wealthy GOP donor Charles Koch are urging Congress not to renew expired tax breaks. 

Although the status of a tax extenders package during the lame-duck session of Congress remains unclear, current Finance Committee Chairman Orrin Hatch (R-Utah) said recently, "There's usually is an extenders package, so we'll probably have extenders."

NATSO recently joined nearly 60 organizations representing a variety of business, energy, transportation, and agriculture stakeholders in urging Congress to renew expired tax incentives, including the biodiesel tax credit, before the 115th Congress adjourns. The groups asked that at a minimum the House and Senate retroactively extend these provisions through the end of 2019 arguing that their lapse has created confusion for the numerous industry sectors that utilize these tax incentives and support thousands of jobs in the U.S. economy.

In a letter to House and Senate leaders as well as members of the key tax writing committees, the organizations said, "Continued uncertainty with regard to eventual congressional action on tax extenders is undermining the effectiveness of these incentives and stands as a needless barrier to additional job creation and economic growth in the private sector."

[Read the full letter signed by NATSO here.]

NATSO remains cautiously optimistic that this tax credit will be extended at least for 2018 (retroactive to Jan. 1) and perhaps 2019 and beyond. It remains unclear whether this will occur in the lame duck session of Congress at the end of this year, or in the first half of 2019.

If Congress considers the tax credit and other “tax extenders” in 2018, it is more likely to be just a one-year retroactive package; if consideration gets pushed to 2019, prospects improve for longer-term extensions.

 

NATSO

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