by Jennifer Zimmerman, CPA
Late last night, the Senate approved H.R. 5771, also known as the Tax Increase Prevention Act, with a vote of 76-16. The bill expires on December 31, 2014, which means that the new Congress will need to address provisions related to 2015 in 2015. President Obama is expected to sign the bill into law later this week according to the White House.
This bill has been a long time coming. The process was delayed throughout the year by debate over whether to extend the provisions beyond 2014 or to make certain items such as the research tax credit, state sales tax credit and tuition tax credit permanent. As recently as late November, a tentative deal fell apart after a veto threat from the White House, which changed the tide of the conversation from looking long-term to simply extending the provisions to the end of the year. The bill is expected to cost $41.6 billion over 10 years according to the Joint Committee on Taxation (JCT).
The bill addresses three main areas:
1. Individual Tax Extenders
2. Business Tax Extenders
3. Energy Tax Extenders
The Individual Tax Extenders include the following:
The Business Tax Extenders include the following:
The Energy Tax Extenders include the following:
In addition to the extenders, the bill also includes language from H.R. 647 to create a new type of tax-advantaged savings account for those with disabilities that are eligible for government benefit programs. Click here to view a complete list of extended provisions. If you have any questions about how the extenders impact your personal or business taxes, please contact us.