Tax Extensions are Still in the Works

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in Hiring,Human Resources

Q.  According to your write-up on the pension law, the law didn’t extend other tax breaks such as R&D costs. Does that mean those breaks are eliminated for 2006?

A.  On the contrary. Although Congress didn’t extend several popular tax benefits—such as the tax credit for research and development (R&D) expenses, the jobs credit for hiring certain disadvantaged workers and the college tuition deduction—it will be tackling those issues again before the end of the year. It’s likely that Congress will reinstate those expired tax breaks retroactive to the beginning of 2006. Tip: At press time, the chances appeared slim that Congress will enact any significant estate reform this year.

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