In a decisive 23-3 vote on July 21, the Senate Finance Committee approved a two-year extension of numerous tax provisions. The group of over 50 credits and deductions, collectively known as tax extenders, expired on December 31, 2014 and would be extended through the end of 2016 if the bill is approved by Congress and signed by the President. The provisions represent substantial savings to individuals and businesses.
Among the provisions in the bill, business taxpayers would benefit from an extension and expansion of the Research and Experimentation (R&E) Credit, the Work Opportunity Tax Credit (WOTC), and the §179D deduction.
Although Congress may not approve the tax extenders bill until the end of this year, the early action by the Senate Finance Committee and the robust bipartisan support that the provisions typically enjoy indicate a strong likelihood that the bill will become law. Provisions like the R&E Credit, WOTC, and the §179D deduction are a boon for business, and any extension of them will encourage growth by providing businesses with some modicum of tax-planning consistency from year-to-year.
CMS’s Brian Kelly responds “We are pleased to see the Senate back in session and working on amending policy that is good for American Businesses.”
Continue Reading: Senate Committee Approves Tax Extenders Through 2016