House makes tax extensions, including Section 179, permanent
December 18, 2015
The House voted Thursday, 318 to 109, to make several tax breaks–including Section 179–permanent.
In a statement, House Speaker Paul Ryan, (R-Wis.), said, "Today, the House took a pivotal step towards rewriting our broken tax code by ending Washington's days of extending tax policies one year at a time. This package of permanent extenders will shield families from a tax hike and provide businesses with greater economic certainty to grow and prosper, which means higher wages and more full-time jobs for American workers."
"Tax hikes limit growth because they ultimately limit economic opportunities," said Representative Kristi Noem (R-SD) in a press release. "With this legislation in place, more of our hard-earned money will stay in the hands of taxpayers, giving families more control over how their money is spent. I'm optimistic this package will also give farmers, homeowners, small businesses and families more certainty about what savings they'll be able to find during tax time this year and in the years ahead. Leaving what you earn in your wallet is essential to growing a healthy and sustainable economy."
The bipartisan Protecting Americans from Tax Hikes Act makes a number of temporary tax provisions permanent, delivering predictability, clarity and certainty for families and job creators. Included in the list of permanent extensions are:
Section 179 business expensing limitations, which are important to many South Dakota farmers, ranchers and small businesses
Improvements to 529 college savings plans
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Deduction for state and local sales tax
Deduction for certain expenses of elementary and secondary school teachers
Deductions for charitable giving
The legislation also temporarily extends the following through the end of 2016:
Biodiesel tax credit
Deduction for certain tuition and higher education expenses
Indian employment tax credit
Moratorium on Obamacare's medical device tax (extended through 2017)
Finally, this legislation includes a series of reforms designed to rein in the power of the IRS and better protect taxpayers, such as:
Firing IRS employees who take politically motivated actions against taxpayers
Requiring IRS employees to respect the Taxpayer Bill of Rights
Prohibit IRS employees from using personal email accounts for official business
Click here for a section-by-section summary of the Protecting Americans from Tax Hikes Act.