Tax Breaks Package to Get One-Year Extension

Politics Reuters

The Republican lawmaker who will soon become the top tax law writer in the U.S. House of Representatives on Tuesday said dozens of temporary federal tax breaks would be renewed for one year, setting aside any effort to restructure them.

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Known as the "extenders," the 55 regularly renewed measures affect a wide range of special interests, from schoolteachers and commuters to corporate research and alternative energy. A tentative deal to change how Congress handles them collapsed last week after a White House veto threat.

"The president blew it up, so we're just going to do a clean, one-year deal," Representative Paul Ryan, who will take over in January as chairman of the House's tax-writing committee, said at a conference in Washington.

Separately, Republican Majority Leader Kevin McCarthy told reporters on Capitol Hill on Tuesday that the House would approve a bill this week to renew the extenders.

The extenders have been in limbo since the end of 2013, when their last authorized extension ran out.

Not renewing them this year could delay 2015 tax return processing, the Internal Revenue Service has warned, while businesses have been clamoring for months for more tax-planning certainty, putting pressure on Congress to act soon. (Editing by Lisa Von Ahn)