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Expiring tax provisions, will Congress finally do their job?

Grand Bargain on tax extenders? Flickr by DonkeyHotey

Yesterday, I wrote about tax provisions that expired at the end of 2013. Still little action, other than bloviating, from Congress. But wait, six more federal tax provisions expire at the end of this year and 20 more expire after 2014. Instead of listing them all you can read the report (PDF). Just the highlights:

  1. The ability to get a refundable child credit for children under 17 years of age is restricted after 2017.
  2. The higher American opportunity education credit expires after 2017. We go back to the lower credits previously in effect.
  3. The Earned Income Credit of 45% for three or more children drops after 2017 to its prior level of 30%.Several alternative fuel provisions expire in 2014
  4. Several pension funding rules expire in 2014
  5. Aviation tax rates drop and other provisions expire in 2015. The taxes go into the Aviation Trust Fund for the maintenance, construction and safety of air infrastructure. If the higher rate is not restored, expect longer delays and more dangerous skies unless Congress comes up with an alternative funding mechanism.
  6. Higher Highway Trust Fund rates expire in 2016. This fund is used to finance interstate and other roads.
  7. Several other energy credits and provisions expire after 2014.
  8. The ability to get a refundable child credit for children under 17 years of age is restricted after 2017.
  9. The higher American opportunity education credit expires after 2017. We go back to the lower credits previously in effect.
  10. The Earned Income Credit of 45% for three or more children drops after 2017 to its prior level of 30%.

At least Congress has time to take care of these before we get too far after the expiration dates. When Congress does not do its job timely, taxpayers are left wondering what they can and cannot do. For example, the Research and Experimentation (R&E and also known as R&D) credit expired at the end of last year. Do business operate as though Congress will renew it retroactively, as Congress has done in the past? Alternatively, businesses might spend less on R&E since they do not know if they will get some of the cost back in a tax credit.