In the recent Tax Extender Bill that was signed into law on December 18, 2015, included were more than $600 billion in tax cuts that will help various businesses and manufacturers as well as many others. Among these is the permanent extension of Section 179, a provision that will allow small businesses to write off up to $500,000 in capital cost instead of limiting them to $25,000. In a nearly 5,000-word piece analyzing the impact of various provisions within the tax extender bill on government agencies and business, a provision was included that makes the research and development (R&D) tax credit permanent. The New York Times examined the tax deal, noting that businesses in various industries will benefit from the bill, from cider makers to medical device makers. Health insurers nabbed a victory in the $1 trillion spending bill, earning a one-year freeze on the so-called premium tax. In another development affecting small businesses, The Hill reported that as part of the budget deal there will be a “one-year freeze on the so-called premium tax” known as HIT.
What This Means For Small Businesses
Small businesses are seeing some positive outcomes from the House tax extender bill. The Business Journals reported that the House move to permanently extend Section 179 “is easily the most positive thing Congress has done for small business in the past several years, and it will ripple through the economy in the form of new investments and more jobs,” according to NFIB CEO Dan Danner. While the Politico Influence tipsheet included NFIB and the Stop the HIT coalition among the winners in the budget rider battle, The Hill quoted Amanda Austin, NFIB Vice President of Public Policy, as saying the provision to delay HIT “isn’t ideal, but it’s certainly a positive step.” On the balance, there is still work to be done to ensure that small businesses have a more beneficial tax code.
For more information on the Tax Extenders Bill, contact our office today.
Source: National Federation of Independent Business. Retrieved December 17, 2015 from http://www.nfib.com/article/house-tax-extender-bill-includes-multiple-breaks-for-small-businesses-72191/
If you have any questions about starting or managing your small business, please contact our office today. As a CPA, Accredited Small Business Consultant, and Advanced Certified QuickBooks ProAdvisor, Linda specializes in working with small business owners and provides tax, accounting, financial analysis, management, planning, and small business advisory services. She can help you to start, manage, and grow a successful small business. Call her today at (727) 391-7373 or else visit her on the web at http://www.LStortzCPA.com and also http://www.LindaStortzCPA.com.