Senate Finance Committee Chairman Orrin Hatch
WASHINGTON, D.C. - Yesterday, the House of Representatives easily passed legislation that would extend or make permanent a series of federal tax credits. The Senate passed a bill combining the tax extender legislation with the FY 2016 Omnibus spending legislation this morning.
The "Protecting Americans from Tax Hikes Act of 2015" addresses a number of priorities supported by USA Rice, including the popular Section 179 and bonus depreciation credits.
The Section 179 provision permanently extends the small business expensing limitation and phase-out amounts in effect from 2010($500,000) to 2014($2 million). The provision modifies the expensing limitation by indexing both the $500,000 and $2 million limits for inflation beginning in 2016. The provision modifies expensing limitation with respect to qualified real property by eliminating the $250,000 cap beginning in 2016.
The bonus depreciation provision is extended for property purchased and used during 2015 through 2019. That property will be eligible for fifty percent bonus depreciation during 2015, 2016 and 2017 and phases down to 40 percent in 2018 and 30 percent in 2019.
Ben Mosely, vice president of government affairs for USA Rice shared his enthusiasm for the House's approval of the bill. "We're glad to see some of the essential tax credits for farmers made permanent. USA Rice has been supporting this language becoming permanent for several years to provide rice farmers with certainty that purchasing new equipment will qualify them for certain tax credits."
Mosely said that "It was important for Congress to finish and approve this legislation before going on recess until next year. The bill now heads to the President's desk where we expect it to be formally signed into law soon."