The Build Back Better Act (BBBA) contains several time-sensitive tax provisions that need to be addressed before the end of the year, including an extension of the child tax credit and a provision to avoid the five-year/15-year amortization of research and experimentation (R&E) expenses. The regular December 31 deadline may be accelerated slightly since the latest estimates are that Congress likely needs to act before December 28 to ensure child tax credit payments continue without interruption. Congress could, of course, act on these items next year with retroactive effect, although the preference would be to address them this year to avoid any implementation issues, particularly with respect to the child tax credit. Thus, with the fate of the BBBA still uncertain and policymakers increasingly discussing negotiations extending beyond year-end, Congress may pivot to another vehicle to address these important provisions.

Although time is short, Congress may try to construct a year-end bill that would address these items, along with other provisions that might normally be addressed in a traditional "extenders" package, including the looming sunset of the TCJA rule allowing EBITDA to be used in the determination of adjusted taxable income for purposes of calculating the section 163(j) interest expense deduction limitation. The stars would need to align quickly to make such a bill a reality, but there is hope that if policymakers become resigned to an early 2022 effort on the BBBA, there may be an interest in acting on these important provisions before then. #TaxTake

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