2015 Tax Incentives Extended
In an unexpected finish to 2015, Congress adjourned for the year with a rare show of bipartisanship and a nice parting gift to manufacturers: a new law which includes permanent $500,000 Sec. 179 expensing, a permanent R&D tax credit and a five-year extension of 50 percent bonus depreciation. All are effective for the 2015 tax year.
The provisions are part of the historic $1.8 trillion tax and spending package that overwhelmingly passed Congress in December. The compromise measure funds the government through the remainder of the 2016 fiscal year (a priority for Democrats) and restores the 50+ expired tax provisions (22 of them permanently) known as the “tax extenders” (a GOP priority). Its enactment is a major victory for AMT members and should give manufacturing a boost heading into the New Year.