On February 13, 2015, the House voted 272 to 142 to adopt the built-in gains tax relief and the charitable contribution basis adjustment for S corporations as part of H.R. 636, the America’s Small Business Tax Relief Act of 2015.
These provisions were originally sponsored by Representatives Dave Reichert (R-WA) and Ron Kind (D-WI) in bills making permanent the five year built-in gains holding period (H.R. 629) and a basis adjustment to ensure S corporations are able to deduct the full value of the stock they donate to charity (H.R. 630). After being adopted by the Committee on Ways and Means, the reforms were combined with a provision to permanently increase the Section 179 expensing limitation as part of H.R. 636. These important reforms received strong bipartisan support. All but one Republican voted for the measure, while 33 Democrats parted with their leadership and the Administration and voted yes. No date has been set by the Senate to take up the measure.
