Congress has gone home for the Thanksgiving holiday with a threat of a presidential veto for a rumored $440 billion tax compromise legislative package that is not formally available for inspection.
The package is said to deal with 55 expiring federal tax extenders and includes charitable giving incentives such as the IRA charitable rollover. The debate includes whether the charitable provisions would be permanent or simply extended.
A spokesman for the White House said President Barack Obama is threatening to veto the as yet undelivered package. It’s not clear if there are the votes to override the veto. White House has threatened to veto because the package is expensive, adding to the deficit but also mainly favoring business.
According to a statement released by the Council on Foundations in Washington, D.C., the deal would also make nine other extenders permanent, including the deduction for conservation easement contributions and the deduction for gifts of food inventory. Two provisions would be removed, while the 43 other expired provisions would be temporarily renewed through 2015.
Sources on Capitol Hill told The NonProfit Times that significant differences remain between the House and Senate versions. “The House extends benefits longer and does not offset. The Senate only extends two years,” according to the source, who has knowledge of the negotiations.
However, Congress went home without moving any legislation through either chamber.
The Independent Sector sent an open letter to Congress on Nov. 18, pressing for extension of charitable deductions and taxpayer incentives to give to nonprofits via the America Gives More Act (H.R. 4719).
Independent Sector is seeking five charitable provisions includes renewing and making permanent three expired tax extender provisions: the IRA charitable rollover, the enhanced deduction for donating land conservation easements, and the enhanced deduction for donating food inventory. The organization also supports extending through April 15 the deadline for claiming charitable donations on the previous year’s tax filing and simplifying to 1 percent the excise tax rate for private foundations’ investment income.
A spokesman for the Washington, D.C.-based advocacy organization said the organization would not have a comment until there is an actual bill to read.
“Originally enacted in the Pension Protection Act of 2006 as a way to encourage increased charitable giving, the three charitable giving tax extenders have demonstrated a significant impact on the nonprofit community,” according to the organization’s open letter.