On November 4, Republicans won control of the US Senate, picking up eight seats for a majority of 53. Coupled with increasing its majority by 12 seats in the US House of Representatives, Republicans will have control of both chambers when the new Congress convenes in January 2015. With three races in the House and one in the Senate still undecided, that majority could grow.
Directors should be thinking about how this change will affect the level of uncertainty pending legislation could potentially have on their companies. For one thing, certain tax provisions, such as the research credit, 50% bonus depreciation, and section 179 small business expensing have expired could be taken up in the lame duck session this year before the 114th Congress convenes in January.
Beginning with the lame duck session already underway, directors should be mindful of three areas in the coming weeks and months: (1) extension of certain tax provisions, (2) Dodd-Frank Act rulemaking, and (3) possible changes in the Affordable Care Act (ACA).