Tax Extenders
By: Dave Thomsen, CPA, Partner | email
Any tax reform as discussed above is not expected to occur until after the 2016 elections. To get us to that point, Senate Finance Committee leaders in late-March were working on a measure to extend a series of tax incentives presently in place. The Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act proposes to extend several individual, business and energy incentive for up to two years. Those incentives include:
- 50% Bonus depreciation
- The New Markets Tax Credit
- The Work Opportunity Tax Credit
- Increased expensing thresholds under Section 179
- Multiemployer Pension Plan funding
- Tax credits for biodiesel and renewable diesel fuel
- Tax credits for alternative fuel and alternative fuel mixtures.
The committee is expected to consider the so-called tax-extenders package soon. The measure is to provide an immediate incentive for businesses to make additional capital investments, thereby boosting the U.S. economy and job creation.
As noted above, the support for the tax-extenders package is expected to be a stopgap measure as lawmakers look for permanent tax reform. But while the Senate appears to be on board with such a move, House leaders appear less inclined to support a straight extension.
Although not a part of the extenders package, any change in the benefits of Section 199, the Domestic Production Activities Deduction is not expected to occur until it is considered as a part of overall tax reform.
