House Renews Effort to Close Foreign Tax Loopholes, Extend BABs

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House Democratic leaders announce they plan a vote for as early as today on a bill (H.R. 5893) that would extend several tax-exempt bond programs while ending $11.6 billion in tax breaks used by firms doing business offshore. The vote is intended to pass a handful of infrastructure-related provisions that were included in the stalled tax extenders bill. The new Investing in American Jobs and Closing Tax Loopholes Act features several changes to the treatment of foreign tax credits, including rules to prevent splitting foreign tax credits from the income to which they relate. H.R. 5893 also would extend the Build America Bonds program through 2012, but the value of the tax subsidies to bond issuers would be reduced.