The House of Representatives voted 378 to 46 to retroactively extend $45 billion in tax deductions for the 2014 tax year, allowing millions of businesses and individuals to claim them on this year’s returns. On Dec. 19, 2014, President Obama signed the Tax Increase Prevention Act (H.R. 5771) into law.
Of special interest to National Stone, Sand and Gravel Association (NSSGA) members is the extension of bonus depreciation, corporate expensing and the election to expense mine safety equipment, NSSGA said.
The tax extenders legislation was viewed as one of the possible vehicles to attach a Highway Trust Fund fix, but due to the complications that emerged in simply extending the tax breaks the bill was kept to the necessary minimum.
The Tax Increase Prevention Act reinstates dozens of tax provisions that expired at the end of 2013, including 50 percent bonus depreciation and increased Sec. 179 expensing levels ($500,000 with a $2 million phase-out cap). These retroactive changes only apply to 2014 and all the normal rules are in effect (including the requirement that customers take possession of the new equipment this year to qualify for bonus depreciation).
Despite calls from the construction industry and its allies to extend bonus depreciation into 2015 and permanently increase Sec. 179 expensing levels, it is unknown when or whether Congress will take up the tax extenders issue in 2015.