The US House of Representatives has passed “The Protecting Americans from Tax Hikes Act of 2015,” a $622-billion package of tax extenders that includes legislation making Section 179 Expensing and the R&D Research Tax Credit permanent. This will enable small businesses to deduct expenses of up to $500,000 of investments in heavy machinery or office equipment instead of having to depreciate the cost over a number of years, creating an incentive to purchase new equipment.
The same legislation also extends Bonus Depreciation for five years, retroactive to January 1, 2015, through December 31, 2019, and delays for two years the imposition of the Affordable Care Act 40-percent tax on high-cost employer-provided health insurance benefits.
“These are fantastic gains for NPES members, their customers, and all capital goods manufacturers,” said NPES President Ralph Nappi in a release from The Association for Suppliers of Printing, Publishing and Converting Technologies (NPES), an association that has reportedly spent a number of years lobbying for the changes. “I congratulate and thank all who contributed to bringing this legislation to fruition by their personal and corporate commitment to the betterment of their own businesses, employees, and customers, as well as their association and industry colleagues.”
In order for the legislation to become a law, it will have to pass the Senate and be signed by President Obama.