House and Senate Approve Tax Extenders Bill

Posted on: December 18th, 2015 by NADO Admin

This week, the House and Senate approved a tax extenders bill, Protecting Americans from Tax Hikes Act of 2015 (http://docs NULL.house NULL.gov/billsthisweek/20151214/R121515 NULL.006 NULL.xml) (H.R. 2029), that addresses 52 tax provisions and makes some tax credits permanent.  The House passed the measure as a free-standing bill on December 17.  The Senate combined the tax extenders bill and fiscal year (FY) omnibus spending bill into one package and approved it on December 18.  Below are some of the major tax provisions that will be extended under the new bill.

Major Provisions Made Permanent

  • Research & Development Business Credit.  In 2016, businesses with less than $50 million in gross receipts will be free to use the credit to offset alternative minimum tax.  In addition, certain start-up businesses who may not have an income tax liability will be able to offset payroll taxes with the credit.
  • Itemized deduction for state and local sales taxes in lieu of income taxes is made permanent, as was the parity between employer-provided fringe benefits for employee parking and employer-provided fringe benefits for a mass transit parking pass.
  • Low Income Housing Tax Credit (LIHTC) and Earned Income Tax Credit (EITC) is made permanent.  It would make the 9% minimum floor permanent and retroactive to January 1, 2015.

Major Provisions Extended

  • The New Markets Tax Credit (NMTC) program is extended through December 31, 2019 at $3.5 million per year.

Click here (http://capwiz NULL.com/nlihc/utr/1/BISGVTPMWK/LIQGVTPMXH/11102733476) to view the entire tax extenders package. 

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