Second tax bill to come

May 22, 2006 | Roger McEowen

 

Now that H.R. 4297 has been signed into law, the Congress will turn its attention to a second tax bill (known as the “trailer” bill) that is expected to extend several other provisions that have either expired or will expire soon. It is anticipated that this bill will include a two-year extension of the research credit, the work opportunity tax credit, the deduction for qualified higher education expenses and the deduction for school teachers that buy supplies for their classrooms. It is also possible that the bill will include an extension of the deduction for state and local sales taxes and numerous charitable-giving reforms - including allowing non-itemizers to deduct charitable donations. It is possible that this second tax bill could be included in pending pension reform legislation (H.R. 2830) that congressional leaders hope to pass before the Memorial Day recess, which begins on May 29.