New PATH Act Provides Major Benefits to Businesses in 2015
With only two weeks remaining until the end of the year, Congress passed the Protecting Americans from Tax Hike (PATH) Act of 2015, which reinstates a large number of tax provisions that had expired in 2014, many of which were not just renewed, but made permanent, while some of the other provisions are extended through 2016, and in some cases, 2019. This gift from Congress comes just in time for the holidays and will have a significant impact on tax payers and businesses. Below are some of the major provisions worth noting. And because California does not conform to some of these tax breaks, please contact us so we can help with your individual and year-end tax planning.
Highlights of the PATH Act:
- $622 Billion Tax Break Package
- Over 100 Separate Provisions
- Permanent Research Tax Credit, Code Sec. 179 Expensing and AOTC (American Opportunity Tax Credit)
- Five-Year Extension for Bonus Depreciation
- Delay of Excise Tax on “Cadillac” Plans
- Moratorium on Medical Device Excise Tax
- Overall Major IRS Reform
Permanent Extensions for Individuals
- Earned income tax credit
- American Opportunity Tax Credit
- Child tax credit
- Option to to deduct state and local sales and use taxes instead of state and local income taxes
- Teachers classroom expense deductions
- Charitable distributions for IRAs
- Qualified […]