Congress Passes Omnibus, Making Permanent Several Tax Incentives and Extending Others
December 18, 2015
The “Protecting Americans from Tax Hikes (PATH) Act of 2015”
December 18, 2015
Once again, Congress scrambled to authorize spending to keep the government running and to reauthorize a package of tax provisions before heading home for the holidays. Known as “tax extenders” in Washington, these provisions include roughly 50 tax reductions and tax breaks that expire every year, including powerful business incentives. However, instead of merely extending the measures another year, Congress made some provisions permanent, taking off the table some of the anxiety that has become a December tradition. Both the spending bill and tax extenders have passed and are expected to be signed by President Obama soon.
Permanent provisions of the Act include:
Depreciation for Qualified Retail, Restaurant and Retail Establishments: The legislation makes permanent a 15-year depreciable life for qualified assets
While not made permanent, several other provisions were extended, including:
Other changes include:
Individual taxpayers were not left out—individual tax provisions that have been made permanent include enhancements to child tax credits, earned income credits and American opportunity tax credits, among others. What may be of most interest to many taxpayers is that the ability to choose an itemized deduction for state and local sales taxes in place of income taxes was made permanent.
The so-called “Cadillac Tax” on high-priced health insurance plans that was scheduled to begin in 2018 has been delayed an additional two years.
Look for more details on how the Act may affect businesses and individuals. As always, contact your Smith and Howard tax professional at 404-874-6244 prior to taking any action.
If you have any questions and would like to connect with a team member please call 404-874-6244 or contact an advisor below.CONTACT AN ADVISOR
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