After the recent elections, we shouldnt see much from this Lame Duck congress. However, we are expecting some action on Bonus Depreciation and Section 179. The NTMA and its lobby firm, The Franklin Partnership are expecting the passage of a temporary bill that will extend Section 179 and other tax measures shortly.
Sometime between Nov 11 and December 11, Congress will likely vote on a bill we call Tax Extenders. It will include dozens of tax provisions which Congress allowed to expire in 2013. Among those in the Tax Extenders package are the R&D Tax Credit, Section 179 Equipment Expensing, and Bonus Depreciation. As of right now, sources are telling us they will extend all those provisions retroactive to January 1, 2014 and for all of 2015. They will extend the provisions using the 2013 levels so 179 remains at $500,000.
There is an effort by House Republicans to make some of these provisions permanent. That remains a long shot in the Senate where Democrats would rather simply extend everything for two years. If something is make permanent, the R&D is the most likely candidate, followed by 179 and lastly Bonus which is the least likely to be made permanent.
Ultimately, we think around December 10, Congress will send a bill to the President simply extending the provisions for all of 2014 and 2015. We are hearing staff will likely settle what is included in the tax extenders package around the first week of December but include it in a bill which goes to the president on Dec. 10. With the new make up of congress, it seems likely that a renewed effort to revamp Tax Reforms efforts.
Check our One Voice Advocacy web site regulary for more details as well as other issues that is currently being worked on. Also, you can easily find your Member of Congress so that you can write to them and stress the importance of this issue and the need to make these Extenders permament for further growth in Manufacturing in the United States.
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