Congress Extends/Makes Permanent Expiring Tax Provisions



President Obama plans to sign the Protecting Americans from Tax Hike Act of 2015, which includes extensions of several popular, expired tax provisions. The Act makes many of these tax measures permanent, including the:

  • Increased Section 179 Expensing Election: With the passage of the Act, businesses with adequate income can deduct up to $500,000 of qualified tangible property, including off-the-shelf computer software, in 2015 and all subsequent tax years.
  • Research and Development Tax Credit: In addition to making the credit permanent, the Act also created a new incentive for small businesses with gross receipts of $50 million or less.
  • 15-Year Straight Line Cost Recovery: Traditionally depreciated over 39 years, qualified leasehold improvements, qualified restaurant and retail improvement property can now permanently be depreciated over 15 years on a straight-line basis.
  • Tax-free Charitable Distributions from Individual Retirement Accounts: Taxpayers ages 70 ½ and older can make tax-free deductions up to $100,000 from their IRAs.

Several of the tax extenders also contain enhanced provisions that could generate additional tax savings opportunities.

If you have questions about how the Protecting Americans from Tax Hike Act of 2015 will affect you, please don’t hesitate to reach out to your local CBIZ MHM tax office.  LinkedIn Twitter