Congress is set to pass a bill containing extensions of many significant tax provisions, and the President is widely expected to sign PATH into law. Over the last several years, Congress had waited until year end or the beginning of the following year to extend many major provisions that had expired. This had often led to confusion and poor planning for taxpayers as they had very little time to plan their tax affairs properly. This year is no different with regard to timing but with a major twist in that many of the extended provisions will now be made permanent. Many other provisions have been extended for a number of years, reducing uncertainty and enabling more informed tax planning.
Highlights of the extender bill include the Research and Development (R&D) Credit, Bonus Depreciation and the increased Section 179 expensing limits.
It is important to note that the extender provisions apply retroactively to Jan. 1, 2015 and extend into future years, with many provisions becoming permanent.This
Tax Alert lists many of the key tax breaks retroactively extended by the Protecting Americans from Tax Hikes Act of 2015.