FWEDA News

Permanent Section 179 Tax Relief and Bonus Depreciation Signed Into Law
Date:  12/21/2015
ArticleType:  Legislative

The "Protecting Americans from Tax Hikes Act of 2015,” a piece of legislation containing the Section 179 and Bonus Depreciation measures championed by Far West and EDA through its extensive lobbying efforts, has now been passed overwhelmingly by both the House and Senate and signed into law by President Obama on Friday, December 18th.  This marks an impressive win for Far West Members.   

Key provisions in the overall legislation include:
 

 

  • Bonus Depreciation. The legislation extends bonus depreciation for property acquired and placed in service during 2015 through 2019 (with an additional year for certain property with a longer production period).  The bonus depreciation percentage is 50 percent for property placed in service during 2015, 2016 and 2017 and phases down, with 40 percent in 2018, and 30 percent in 2019. 

  • Sec. 179 expensing levels.  The legislation permanently extends the small business expensing limitation and phase-out amounts in effect from 2010 to 2014 ($500,000 and $2 million, respectively).  It also modifies the expensing limitation by indexing both the $500,000 and $2 million limits for inflation beginning in 2016. 

  • Energy Efficiency Tax Incentives Extended Through 2016: Extends the tax credit for energy efficient improvements for existing residential homes (25C), tax credit for energy efficient improvements for new residential homes (45L), and deduction for energy efficiency improvements for commercial buildings.

  • Suspension of the Health Insurance Tax in 2017: One-year suspension of the Health Insurance Tax (HIT) in 2017. The tax is levied annually on fully insured health care plans and is offered by many small and medium-size businesses. In 2015 and 2016, the federal government is expected to collect $22.6 billion from the HIT.

  • Continued Relief from Hours of Service Rules for Commercial Trucking: Continues the suspension of the 34-hour restart requirement as part of the Department of Transportation's (DOT) Hours of Service (HOS) rules regulating the amount of time a commercial truck driver can spend behind the wheel.

 

A section-by-section summary of the legislation can be found here.

This legislative victory would not have been possible without our members who continue to remind their lawmakers about the need for common-sense policies that will keep the economy on a path of sustained growth. Thank you for your efforts that led to this legislative victory.

Please do not hesitate to contact the Far West office at if you have any questions or would like additional information.

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