News and analysis
December 03, 2014

Congress Aims to Clear ‘Tax Extenders’ Package This Month

It is unlikely that Congress will approve a provision this month that would move the deadline for claiming a charitable deduction to April 15. But before lawmakers leave Washington for the holiday recess, perhaps as early as Dec. 11, nonprofit advocates hope the legislators will at least pass a slate of expired tax provisions known as "tax extenders."

The House passed a bill last summer that would make many expiring provisions of the tax code permanent. The Senate, however, has preferred temporary extensions.

A tentative deal on the extenders drew a veto threat from President Obama late last month, and since then, House and Senate leaders have not reached a compromise.

The House bill that passed last summer, called the "America Gives More Act," included the April 15th provision. On Tuesday, a group of charitable organizations sent a letter to the House and Senate leadership urging them to support the act.

The tax extenders, designed to increase giving, include:

  • The IRA rollover, which allows people older than age 70&frac; to donate up to $100,000 directly from their retirement accounts to a charity without having the gift count as taxable income.
  • A provision that allows taxpayers to use certain food donations to charities to reduce their taxable income.
  • The land-conservation easement deduction, which allows taxpayers to lower their tax burden by giving up development rights on land in order to preserve it.

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