|The Sendate Finance Committee has recently approved a tax extenders bill that will retroactily extend over fifty tax breaks for two years retroactive to when they expired (Dec. 31, 2014). Some of the tax breaks included are the research and experimentation tax credit, the energy efficient commercial building deduction (Section 179D), state and local sales tax deductions, additional first year depreciation (50 percent Bonus Depreciation) and increased Section 179 depreciation. The bill will now go to the Senate for full consideration, but is anticipated that the Senate will give a heavy vote in favor of the bill based on a strong bipartisan vote of 23-3.
The proposed bill also expands the research and experimentation tax credit and Section 179D to be more beneficial for small and mid-sized businesses. Proposed changes to the research and experimentation tax credit include allowing companies to take the credit against their Alternative Minimum Tax (AMT) and effectively making the credit refundable for small businesses (however, the refund is capped). The proposal would expand Section 179D to allow charities and tribal governments that owned buildings the ability to allocate the Section 179D tax deductions to the builders making the energy-efficient enhancements.
While this bill still has to pass the Senate, the House, various committees and President Obama, it is an indication that Congress has these expired provisions on their radar and they may be willing to take action to extend the expired provisions earlier than they have in the past.
For the latest developments on the propsed tax extenders bill, please contactadmin for a brief scheduled call with CEO Terry Judge.