House Passes Extenders Legislation

The House on December 9, 2009, passed the Tax Extenders Bill of 2009 (H.R. 4213) by a vote of 241 to 181. The legislation extends a large number of tax provisions expiring at the end of 2009 for one year through December 31, 2010. The $31 billion cost of the legislation is paid for with a package of foreign account compliance provisions and the taxation of carried interests in partnerships at ordinary income rates. The fate of the legislation in the Senate is uncertain, with most of the controversy surrounding the revenue raising provisions, but also simply due to the Senate calendar and whether there is time to address the legislation this year rather than deferring consideration until next year.