Senate Approves Bill to Extend Business Tax Provisions Set to Expire
On April 3, the Senate Finance Committee overwhelmingly approved the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act of 2014 with a strong bipartisan vote, setting the stage for Congress to address. The bill extends many long awaited business tax provisions that originally expired at the end of 2013, and modifies certain tax provisions. Note that Section 179 and special depreciation are included in the package.
Some of the key temporary tax benefits in this bill include:
• R&D Tax Credit Extended & Modified
Research credits for qualified research activities would be extended for two years through the end of 2015. Additionally, the credits would now offset AMT, and would be expanded to qualifying start-up businesses, allowing the credits to offset payroll taxes.
• §179D Energy Efficiency Deductions for Commercial Buildings
Deductions of up to $1.80 per square foot for energy efficient commercial building property would be extended for two years through the end of 2015. Additionally, it has been modified to allow non-profits and tribal governments to allocate deductions to architects and engineers just as other governmental agencies have.
• §45L Energy Efficiency Credits for Multifamily & Residential Developers
Two-year extension would allow apartment developers and home builders to be eligible for a $2,000 tax credit for every new energy efficient dwelling unit that is first leased or sold by the end of 2015. Taxpayers also have the ability to amend returns to claim missed tax credits from previous years.
• 50% Bonus Depreciation & §179 Expensing Thresholds Extended
Section 179’s increased expensing amounts would be extended through 2015. 50% Bonus Depreciation provisions would be extended through the end of 2015 as well (2016 for certain property).
• 15-Year Life for Qualified Real Property
Two year extension would allow for qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property to have a 15- year depreciation recovery period through the end of 2015.
• Hiring & Employment Credits Extended
Work Opportunity Tax Credits and Empowerment Zone Tax Incentives would be extended through the end of 2015.
Let’s hope the Bill get’s passed into law. We will keep you posted.
See the Senate Finance Committee Press Release here.
Details on the EXPIRE Act, including the full description of the bill, summary, JCT estimate and amendments can be found here.
Bressler & Company’s multi-disciplinary team of tax experts can help you capitalize on every possible tax extender you are eligible for. To learn how R&D Tax Credits, Cost Segregation, Green Building Tax Incentives, and Hiring Tax Credits could benefit you, please call us today at 559.924.1225, and make an appointment with Tracy Bressler. Saving you money is her passion!
