Pension Reform and Tax Incentive Extender Legislation Probably Coming in June

House Majority Leader John Buehner (R-OH) recently announced that a bill which addresses pension issues in view of the pension plan problems faced by airlines last year probably would not be ready by the Memorial Day recess. Buehner did indicate that progress toward a bipartisan consensus was being made and that an agreement in principle was possible by next week--the formal language, however, could not be completed in time. A likely feature of the bill would be provisions extending popular tax incentives, such as the higher education expenses deduction, sales tax deduction and work opportunity credit. Charitable contribution issues, however, would likely be deferred until later legislation.

While the tax extenders are probably a good idea, taking an extra week or two and getting the pension reform langauge correct is really important.