Extenders

As part of the U.S. Government’s recent $700 billion package to bailout U.S. financial institutions, Congress included numerous tax breaks. The tax breaks, called extenders in Washington, DC because they renew or extend expiring tax benefits, were added to gain the support of legislators and to provide political cover for politicians supporting the bill.

Indeed, the inclusion of tax extenders and other provisions swayed some members of the House of Representatives to reconsider their positions and support the bill, which eventually passed and was signed into law by President Bush.

“In an interesting twist, Congress added tax extenders to the financial rescue bill, including a one year extension of the biodiesel tax credit.”