Several popular tax provisions, which expired December 31, 2014, will soon be renewed retroactively for the 2015 tax year and beyond by Congress as part of the Consolidated Appropriations Act, 2016. On Friday, December 18, 2015, both houses of Congress passed, and the President signed a bill that, “…will boost local economies and change the lives of millions of working Americans, improving family financial stability and positioning children for a lifetime of success.”
According to Forbes’ article, Tax Deal Makes Permanent R&D Credit, Generous Child And College Breaks, among the provisions that expired in 2014 were, “…powerful business incentives like the R&D credit, bonus depreciation, and enhanced Section 179 write-offs of asset acquisitions. Individual taxpayers were not immune to the lapse in law; [individuals] lost the itemized deduction for state and local sales taxes in lieu of income taxes and the exclusion for cancellation of debt income related to primary residence mortgages when the clock struck midnight on New Year’s Eve 2014.”
This bill differs from the legislation passed December 21, 2014 in that it makes permanent some key tax law changes. To see a comprehensive list of permanent, 2-year and 5-year tax extenders, as well as individual and business tax incentives under the new Power of the Protecting Americans from Tax Hikes (PATH) Act of 2015, please visit the Journal of Accountancy’s Website.