Tax Legislative Developments

1.  The House voted 314-100 to approve the omnibus energy bill, H.R. 6, previously approved 86-8 by the Senate on December 13.  The President has indicated that he will sign the bill, mperhaps as early as today.  The bill omits a $21 billion tax title that would have provided tax incentives for renewable energy and imposed new revenue increases on larger oil and gas companies. The bill's only substantive tax provisions are (1) extend the Federal Unemployment Tax Act (FUTA) surtax of 0.2%, and (2) lengthen (from 5 years to 7 years) the amortization of geological and geophysical expenditures for major integrated oil companies.

• Joint Committee on Taxation, Estimated Budget Effects

2.  The House voted 411-0 to approve H.R. 3997, which provides a set of tax incentives for military personnel and firefighters, and makes a number of technical changes to previously enacted tax legislation. The bill now goes to the Senate for consideration. The bill includes several revenue raisers to offset the tax incentives in the bill, including (1) revise the tax rules on expatriation, (2) increase the penalty for failure to file partnership returns, (3) increase the penalty for failure to file S corporation returns, (4) increase the minimum penalty on failure to file a return of tax, and (5) Increase information return penalties.

• Summary
• Legislative Text
• House Ways & Mean Committee, Press Release
• Joint Committee on Taxation, Description of the Tax Technical Corrections Act of 2007
• Joint Committee on Taxation, Estimated Revenue Effects
• Associated Press:  House OKs Tax Benefits for Military

3.  The House voted to approve H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007:

• Legislative Text
• H.R. Rep. No. 110-356
• House Ways & Means Committee, Press Release
• Senate Finance Committee, Press Release
• Treasury Department, Press Release
• Joint Committee on Taxation, Estimated Revenue Effects
• Reuters:  House Passes Tax Relief For Struggling Homeowners

4.  AMT News:

• Associated Press:
  • House to Vote on Preventing Expanded Tax, by Jim Abrams
  • Senate Defeats Paid-For AMT, by Jim Abrams
• Reuters: Congress to Push Ahead AMT Tax Fix, by Joanne Kenen
• Washington Post: Borrow as You Go; Guess Who Gets to Pay for the Alternative Minimum Tax Patch (editorial)