President’s FY 2014 budget renews prior international tax proposals but omits extensions for CFC look-through and active financing exception

US Outbound Newsalert

The Treasury Department's 'Green Book', released on April 10, 2013, outlines the Obama Administration’s budget proposals for fiscal year 2014 (FY 2014), with no significant changes or additions to the international tax proposals in the previous year's budget. The Administration echoed last year’s announcement that it would propose a minimum tax on overseas profits, but there is no specific provision in the budget on this point. In addition, comments in budget-related releases indicate the Administration’s continued interest in a lower US corporate income tax rate, a broader tax base, and permanent enactment of some key provisions that currently are subject to annual extensions, particularly the research tax credit. However, the FY 2014 budget is silent on the subject of extensions of controlled foreign corporation (CFC) look-through and the active financing exception.

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