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U.S. Congress Moves to Renew Expired Tax Credits

By SEMA Washington, D.C., Staff

Since the U.S. House of Representatives will likely not tackle comprehensive tax reform in 2014, lawmakers have begun drafting legislation to extend a variety of yearly tax breaks that expired at the end of 2013. The Senate Finance Committee has already approved and sent to the senate floor a bill containing a number of such measures.

Of interest to the business community, the SEMA-supported Senate bill would provide a two-year extension, through 2015, for the research and development (R&D) tax credit. It would also extend the 50% bonus depreciation for qualified property purchased before January 1, 2016. Section 179 expensing would be restored for one more year at the maximum $500,000 deduction, with a $2 million phase-out level. Absent the renewal, the allowance reverts to $25,000, with a $200,000 phase-out level. 

For more information, contact Stuart Gosswein at