On Dec. 16, the Senate approved H.R. 5771, the “Tax Increase Prevention Act of 2014” by a 76-16 vote. The $41.6 billion retroactive package of tax extenders, endorsed by the House on Dec. 3, now heads to the president’s desk for signature. The tax extenders legislation restored approximately 55 expired tax provisions for fiscal year 2014, including the following AGC-supported tax policies:
- Section 179 maximum deduction limit of $500,000 with a $2 million phase-out;
- Fifty percent bonus depreciation for qualified property;
- Fifteen-year straight-line cost recovery for qualified leasehold improvements;
- Reduced 5-year holding period for S-corporation recognition for built-in gains tax;
- New Markets Tax Credit (NMTC);
- Work Opportunity Tax Credit (WOTC) – including qualified veterans;
- Research and Development tax credit;
- Renewable energy production and investment tax credits (PTC); and
- Energy efficient commercial buildings deduction under Section 179D.