By Washington, D.C., Staff
The U.S. Senate Finance Committee passed legislation to extend tax breaks of key importance to SEMA members. The bill extends for two years the research and development (R&D) tax credit, which provides business a credit equal to 20% of research expenses incurred over and above the average amount the company invested in research for the prior four years. The legislation encourages businesses to make capital expenditures by providing companies a 50% bonus depreciation on qualified property purchased and placed in service before January 1, 2017.
The bill would also extend Section 179 expensing, which permits small businesses to deduct up to $500,000 in capital investments made in the year of the investment. The legislation also extends the seven-year depreciation recovery period for motorsports entertainment complexes. The bill proceeds to the Senate floor for consideration. The House of Representatives has already passed many of the same tax extender provisions.
For more information, contact Eric Snyder at erics@sema.org.