Protecting Americans from Tax Hikes Act of 2015 passed

December 18, 2015

On Friday, December 18, 2015, President Obama signed the Protecting Americans from Tax Hikes (PATH) Act of 2015. This bill is not what we’ve come to know as our typical extenders package, which extended many credit and deductions for two years. Instead, the bill makes 20 key tax provisions permanent and extends many others for five years. The permanent extenders include: - Section 179 expensing limit of $500,000 - Research & development tax credit - State & local sales tax deduction (in lieu of deducting state income tax) - Child tax credit - Earned income credit - Teacher’s classroom expense deduction - Charitable distributions from IRAs The 5-year (2015-2019) extenders include: - Bonus depreciation at 50% through 2017, 40% in 2018 and 30% in 2019 - Work Opportunity Tax Credit (WOTC) For the complete list of provisions extended under this bill, visit the recent Journal of Accountancy article. http://www.journalofaccountancy.com/news/2015/dec/tax-extender-legislation-introduced-in-congress-201513571.html