WASHINGTON (5/21/10)—It is expected that as early as next week the U.S. House may vote on a package of government funding extensions, which carries a number of provisions of specific interest to credit unions. The American Jobs and Closing Tax Loopholes Act (H.R. 4213) is comprehensive legislation designed to extend unemployment insurance, COBRA benefits, and certain tax credit among, other items. The bill also features provisions that would affect:
* The U.S. Small Business Administration (SBA): The bill extends the 2009 Stimulus Act SBA provisions, such as certain fee eliminations and increased guarantees for SBA 7(a) and 504 loans. These program enhancements currently are set to expire on May 31; * The National Flood Insurance Program (NFIP): The bill extends NFIP authorization to Dec. 31. It currently expires on May 31; * The Tax-free Individual Retirement Account Distributions for Charitable Donations: The bill would re-establish this provision and extend it to Dec. 31. The authority expired the end of last year, and reauthorization is likely to be made retroactive to the first of this year; * New Markets Tax Credit: The bill would extend this credit through the end of 2010; and * Single Employer Pension Plan Relief: The bill allows defined benefit plans to extend the period to amortize any shortfalls. Plan administrators would be able to choose to increase the amortization period from seven to nine years, and in some situations 15 years, subject to new requirements.
If approved by the House, the bill would then go to the Senate for consideration.