U.S. Congress Set to Permanently Extend R&D Tax Credit and Small Business Expensing

By SEMA Washington, D.C., Staff

The U.S. House of Representatives passed a tax cut package that would make several SEMA-supported tax credits permanent rather than extending them for one or two years, often retroactively.  The Senate is also expected to pass the bill, which includes the following provisions:

  • Permanently extend the research and development (R&D) tax credit.
  • Permanently extend the Section 179 deduction limits allowing smaller companies to write off their capital investments up to $500,000 in the year the purchases were made with a $2 million cap on annual investments, and indexed for inflation.
  • Permanently allow businesses to deduct the cost of investments made to leased property and retail space over 15 years in an equal amount each year.
  • Extend through 2016 the 7-year recovery period for motorsports entertainment complexes.
  • Renew but gradually decrease the bonus depreciation for investments in capital equipment made through 2019.  The bill extends the 50% bonus depreciation through the end of 2017.  Thereafter, the bill provides for 40% depreciation in 2018 and 30% depreciation in 2019.

For further information, contact Eric Snyder at