Congress Passes Tax Extender Legislation
Update 12/22/14: Since this post was first published, President Obama has signed the items discussed below into law.
Congress has passed, and sent to President Obama for signature, a bill (Tax Increase Prevention Act of 2014) extending a number of tax provisions that had expired on December 31, 2013.
The bill restores a number of tax incentives utilized by individuals, businesses and nonprofits. These benefits include:
- Expenses incurred by secondary school teachers
- Deduction for state sales taxes (if greater than that for state income taxes)
- Tax-free distributions from an Individual Retirement Account to a charitable organization.
- Research Tax Credit
- New Markets Tax Credit
- Work Opportunity Tax Credit
- Bonus depreciation equal to 50% of the cost of new business property
- 15-year depreciable life for certain leasehold improvements
- Expensing of up to $500,000 of business property (Section 179 Expense)
- Exclusion of 100% of gain on the sale of Qualifying Small Business Stock
- Special deduction (179D) associated with energy efficient commercial buildings
- Residential Energy Credit
The above list is not all-inclusive; please contact us if you have any questions about the status of a specific item.
As was the case in preceding years, these tax extenders are temporary and will expire on December 31, 2014. The new Congress being seated in January has expressed a desire to enact legislation of a permanent nature in its upcoming session.