President to Sign Tax Increase Prevention Act 2014 – How This Affects You

tax refund lowU.S. senators voted 76-16 to pass legislation to renew for tax year 2014 more than 50 expired tax breaks just before lawmakers leave for the Christmas holiday. The $41.6 billion bill (H.R. 5771), which the White House says President Barack Obama will sign, would renew tax provisions for the 2014 tax year. Though the retroactive provisions will be available for taxpayers in tax year 2014 and allow them to claim the tax breaks on returns for the 2015 filing season, the provisions will expire again at the end of the year. Lawmakers have pledged to revisit the issue in early 2015 to craft a long-term solution.

Some key provisions may interest IWLA members:

  • Extension of Bonus Depreciation: This extends the 50-percent bonus depreciation option for nearly all business equipment placed into service during calendar 2014.
  • Extension of Increased Expensing: This provision extends the full expensing of property placed into service by small businesses that were subject to the limitations in effect during years 2010 through 2013.
  • Extension of Fuel Tax Credit for Propane and Natural Gas: This provision extends the $0.50 per gallon credit for the business use of alternative fuels, including use in forklifts, such as propane and natural gas.
  • Extension of Credit for Alternative Fuel Vehicle Refueling: This provision extends the 30 percent investment tax credit for alternative vehicle refueling property.
  • Extension of the income and excise tax credits for biodiesel and renewable diesel fuel mixtures: This provision extends the $1-per-gallon tax credit
  • Extension of the tax deduction for energy efficient commercial buildings: This provision extends the section 179D tax deduction for energy efficient commercial buildings.

You may view the entire bill summary and its text by clicking here.

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