Congressional leaders in both parties are closing in on an agreement on a broad virus relief package that would accompany a year-end omnibus spending bill and close out legislative work for the year. Current funding for much of the government expires at the end of the week. 

"We all believe the country needs it, and I think we're getting closer and closer," Senate Majority Leader Mitch McConnell (R-KY) said last night. His counterpart in the Senate, Minority Leader Chuck Schumer (D-NY), said both sides are working in good faith, "exchanging paper and ideas back and forth, making progress." The negotiations include House Speaker Nancy Pelosi (D-CA) and House Minority Leader Kevin McCarthy (R-CA), as well as Treasury Secretary Steve Mnuchin. 

On tax policy, the negotiations reportedly may include a set of extensions for various temporary tax provisions that are set to lapse at the end of the year, including several green energy incentives. The Work Opportunity Tax Credit (WOTC) and look-through treatment of payments between related controlled foreign corporations are also set to lapse at year's end and could be extended, along with many others. A list of all the individual and corporate tax provisions that expire at the end of the month is posted here.  

Leader McConnell has indicated that he expects Congress to stay in session until an agreement is reached on both the omnibus spending bill and virus relief. As such, Congress may be forced to pass another short-term spending bill before the end of the week to give negotiators more time to reach a year-end agreement.

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