U.S. House votes to extend 50 tax breaks another year

WASHINGTON — The House voted Wednesday to extend more than 50 tax breaks for another year, including one that would allow Nevadans a deduction for what they pay in state and local sales taxes.

Another benefit that was extended excludes from taxation the “forgiven” portion of a mortgage by homeowners who reach agreements with their lenders, or sell their homes in a short sale. The “mortgage forgiveness” tax break is prized in Nevada and other states hit hard by the housing collapse.

Lawmakers voted 378-46 for the so-called “tax extenders” bill, which would renew 55 expiring tax credits and deductions targeted to families and businesses. They would be renewed retroactive to Jan. 1, 2014, meaning they could be claimed by taxpayers filling out their forms next spring.

“The last thing Nevadans want to get for Christmas is a higher 2014 tax bill,” said Rep. Joe Heck, R-Nev., who voted for the bill.

But beyond that, Congress would have to fight over them yet again next year. Negotiations to make some of the benefits permanent collapsed last week as President Barack Obama considered them too costly and tilted to business at the expense of families.

“I am disappointed that these extensions will be obsolete in a matter of weeks,” said Rep. Dina Titus, D-Nev., who voted for the bill. “Congress should work together to create certainty on taxes for families and businesses.”

The deduction for sales taxes is used heavily in Nevada and the six other states that do not have a state income tax by residents to lower their reported federal income. The law gives taxpayers a choice of which tax to deduct.

Reps. Steven Horsford, D-Nev., and Mark Amodei, R-Nev., also voted for the bill, which was sent to the Senate for a final vote.

Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@stephensmedia.com or 202-783-1760. Find him on Twitter: @STetreaultDC.