Congress Working to Renew Business Tax Provisions
December 8, 2014 1 Comment
What do the following tax provisions all have in common?
- Research and Development Tax Credit
- Bonus Depreciation
- Increased Expensing Limits
They are all business-friendly tax provisions that expired at the end of last year, and thus could be unavailable for businesses when they file their 2014 taxes.
These provisions have all been “temporary ” tax provisions that are regularly renewed. The fact that they are regularly renewed means that businesses have come to rely on their regular renewal, and expect these provisions to be available. This could be a real problem for American businesses if the provisions were not renewed; it would lead to unexpectedly high taxes for businesses. In order to remedy the fact that these provisions are not yet renewed, Congress is still looking to reauthorize these provisions.
On December 3, the House of Representatives passed legislation that would extend these tax provisions by a year. The measure passed by a vote of 378 – 46. The bill is HR 5771.
The Senate is planning on taking this matter up, but wants to pass a two-year extender bill, to give businesses more confidence.
All of this needs to happen rapidly, because Congress will soon adjourn for the holidays.
About Jason Dickstein
Reblogged this on Income Tax Refund in 2014.