Update on Tax Changes

The Senate continued March 13 to march toward passage of a $109 billion surface transportation bill with a host of tax-related provisions but postponed a final vote until March 14.

Before adjourning for the day, senators dispensed with four amendments affecting programs within the Internal Revenue Code. All four attempts to amend the code were defeated, including efforts to extend expired and expiring tax cuts, such as the research and development tax credit.

The legislation (S. 1813) would reauthorize highway, transit and safety programs through fiscal year 2013, extend expenditure authority for the Highway Trust Fund through fiscal 2013 and extend the taxes streaming into the trust fund through fiscal 2015, including the 18.4 cents-per-gallon federal gas tax.

The legislation is expected to cost $109 billion, with about $100 billion paid for by gas tax revenues deposited into the Highway Trust Fund and a continuing general fund transfer to support transit programs. The remaining amount would be paid for with a host of smaller tax and nontax measures.