Collectively, temporary tax provisions that are regularly extended as a group by Congress, rather than being allowed to expire as scheduled, are often referred to as "tax extenders." There are several options for Congress to consider regarding temporary provisions. Another option would be to allow expired provisions to remain expired. Enacting provisions on a temporary basis, in theory, would provide Congress with an opportunity to evaluate the effectiveness of specific provisions before providing further extension. Reasons for Temporary Tax Provisions

There are several reasons why Congress may choose to enact tax provisions on a temporary basis. 114-113 ), extended all expiring provisions. Tax policy may also be used to address temporary circumstances in the form of economic stimulus or disaster relief. Congress may also choose to enact tax policies on a temporary basis for budgetary reasons. Tax Provisions that Expired in 2016

Thirty-four temporary tax provisions expired at the end of 2016. The other two individual extender provisions are housing-related. The one business provision expiring at the end of 2016 that has not been extended in past tax extender legislation was enacted at the end of 2015, as part of the Consolidated Appropriations Act, 2016 ( P.L. Recent "Tax Extender" Legislation

The most recent "tax extenders" legislation was enacted as the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), enacted as Division Q of the Consolidated Appropriations Act, 2016 ( P.L. The PATH Act either extended or made permanent all of the 52 temporary tax provisions that had expired at the end of 2014. Of the 30 business tax provisions that expired at the end of 2014, 12 were made permanent in the PATH Act, while another 5 were extended through the end of 2019. However, no long-term or permanent extensions of energy-related provisions were included in the PATH Act. The provisions that had expired at the end of 2011 were extended retroactively. The Cost of Extending Expired Tax Provisions

As lawmakers consider whether to extend expired tax provisions beyond 2016, cost is one factor. Since many provisions were made permanent in the PATH Act, a temporary extenders package for provisions that expired in 2016 would cost less than past extender packages. There are fewer provisions to extend, and many provisions with the largest revenue cost were made permanent in the PATH Act. Cost of Extending Provisions that Expired in 2016

As discussed above, most provisions that expired at the end of 2016 were previously extended for two years in the PATH Act.
In the past, Congress has regularly acted to extend expired or expiring temporary tax provisions. Collectively, these temporary tax provisions are often referred to as "tax extenders." Most recently, in December 2015, Congress addressed tax extenders in the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), enacted as Division Q of the Consolidated Appropriations Act, 2016 (P.L. 114-113). This legislation extended all of the 52 provisions that had expired at the end of 2014. Unlike past tax extenders legislation, however, a number of provisions that had expired at the end of 2014 were made permanent. Several others were extended through 2019. Many provisions were temporarily extended for two years, through 2016.
Thirty-four temporary tax provisions expired at the end of 2016. Most of these provisions were extended for two years as part of the PATH Act. Options related to extenders in the 115th Congress include (1) extending all or some of the provisions that expired at the end of 2016 or (2) allowing expired provisions to remain expired. If temporary tax provisions that expired at the end of 2016 are extended, retroactive extensions may be considered so that tax incentives and provisions are available in 2017. In the past, retroactive extensions have been common for expired temporary tax provisions.
There are several reasons why Congress may choose to enact tax provisions on a temporary basis. Enacting provisions on a temporary basis provides legislators with an opportunity to evaluate the effectiveness of tax policies prior to expiration or extension. Temporary tax provisions may also be used to provide economic stimulus or disaster relief. Congress may also choose to enact tax provisions on a temporary rather than permanent basis due to budgetary considerations, as the foregone revenue from a temporary provision will generally be less than if it were permanent.
The provisions that expired at the end of 2016 are diverse in purpose. There are education- and housing-related provisions for individuals. For businesses, there are several provisions related to the territories, Indian tribes, and economic development, in addition to provisions for specific industries. There are also a number of energy-related tax provisions that expired at the end of 2016.
As lawmakers consider whether to extend expired tax provisions beyond 2016, cost is one factor. Since many provisions were made permanent in the PATH Act, a temporary extenders package for provisions that expired in 2016 would cost less than past extender packages. There are fewer provisions to extend, and many provisions with the largest revenue cost were made permanent in the PATH Act.