On Friday, December 18, 2015, the President signed into law the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). This legislation not only makes various expired tax provisions permanent, it also extends other expired provisions for up to five years.
Here is a sampling of extended breaks that may benefit you or your business:
- The deduction for state and local sales taxes in lieu of state and local income taxes (extended permanently),
- Tax-free IRA distributions to charities (extended permanently),
- Bonus depreciation (extended through 2019, but with reduced benefits for 2018 and 2019),
- Enhanced Section 179 expensing (extended permanently and further enhanced beginning in 2016),
- Accelerated depreciation for qualified leasehold-improvement, restaurant and retail improvement property (extended permanently),
- The research tax credit (extended permanently and enhanced beginning in 2016),
- The Work Opportunity credit (extended through 2019 and enhanced beginning in 2016), and
- Various energy-related tax incentives (extended through 2016).
Here is a more comprehensive list of the items extended, made permanent and/or modified in the Act. A complete list is included in the text of H. R. 2029, the “Protecting Americans from Tax Hikes Act of 2015.”
For more information on how the PATH Act impacts you, please contact us in Brea, 714.990.1040 or Visalia, 559.732.4135, or click the button below to schedule an appointment. Keep in mind that, for you to take maximum advantage of certain extended breaks on your 2015 tax return, quick action may be required.