By Catherine Snowdon in New York
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Charles Rangel: package would prolong regimes |
A House of Representatives tax package marked up on May 15 contained extensions of two significant corporate tax rules. The Bill prolongs both the subpart F exception for active financing income and the look through rule for controlled foreign corporation (CFC) regimes for one more year.
"The important point is that extension of these provisions provides US multinationals certainty and allows them to more effectively compete with their foreign competitors in terms of competitively pricing long-term products and redeploying earnings to take advantage of investment opportunities abroad," said Marc Gerson a member of Miller & Chevalier in Washington, DC and former majority tax counsel to the Committee on Ways and Means, the tax-writing body of the House of Representatives.
The Bill, introduced by Ways and Means Committee chairman Charles Rangel also contained significant extensions aimed at encouraging the use and production of renewable energy.
The investment tax credit for solar energy was lengthened by six years, a three-year extension of the production tax credit (PTC) for energy derived from biomass, geothermal, hydropower, landfill gas and solid waste was included, as was a one-year extension of the PTC for energy derived from wind.
"This bill would also help companies move forward with critical investments to build new technologies and provide incentives for renewable energy and energy conservation to help reduce our nation's dependence on foreign oil," said Rangel as he introduced the bill.
