Yesterday, Congressmen Dave Reichert (R-WA) and Ron Kind (D-WI) introduced HR 4454 and HR 4453 to make permanent two tax provisions that are important to the S corporation community.

The first bill provides a permanent BIG tax fix by locking in the recognition period for the built-in gains tax at five years. The provision was included in Chairman Camp’s tax reform draft and was discussed earlier this week in a Ways & Means Committee hearing that included S-Corp ally Jim Redpath as one of the witnesses. The latter bill, H.R. 4453, makes permanent the basis adjustment for charitable giving by S corporations, and is another provision that was included in the Chairman’s draft.

In a joint press release, Rep. Reichert had this to say:

These are common sense reforms of our current tax code that would help proven job creators – S Corporations – to access the capital they need to grow, compete nationally and globally, and get Americans back to work.  I am proud to introduce these bipartisan bills with my colleague Congressman Kind, and I look forward to continuing work towards comprehensive tax reform. 

Rep. Kind made the following comment:

With nearly 60,000 S Corporations in Wisconsin, supporting these job creators is a key priority of mine as I work to strengthen the economy in Wisconsin and across the country. These bills bring stability, simplicity and fairness to the tax code so S Corporations can continue to provide good jobs and help sustain local communities.

These bills are part of a broader effort by Chairman Camp to move pieces of his tax reform draft through the committee and the House, in preparation for negotiations with the Senate over the fate of tax extenders.  Camp has made clear he intends to mark up the first of these two bills, those addressing Section 179 and the R&E tax credit, shortly after the House returns from the Easter recess.  We hope and expect the Committee to take up the two Reichert/Kind bills shortly after that.