ICYMI: Congress finished 2015 with a bang. Decades of hard work and determination by a coalition of committed manufacturing companies and organizations finally paid off with passage of the FY16 Omnibus funding bill that also included restoration of the 50+ expired temporary tax provisions known as the “tax extenders.”
You might be thinking “Temporary extensions happen every couple of years, usually at the last minute. What’s different this time?”
Permanence is what’s different! Plus a long-term extension thrown in.
Beginning with the 2015 tax year:
Permanent R&D Tax Credit
Permanent Sec. 179 Expensing ($500K, $2M cap, new/used machines)
5-year Bonus Depreciation (50% 2015-17, 40% 2018, 30% 2019, no limit, new equipment only)
Check out how you can use Sec. 179 and Bonus Depreciation to your advantage. Click here
House Speaker Paul Ryan (R-WI) had this to say on passage: “This bill lays the groundwork for historic reforms that will fix our broken tax code. Instead of spending months each year debating temporary tax extensions, Congress will be able to focus on the comprehensive tax reform we all agree our country needs. Americans deserve a simpler, fairer and flatter tax code that’s built for growth, and this bill will help make that possible.”
Finally, tax reform that makes sense.