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Senate Votes to Revive Expired Tax Breaks

Marc Ausfresser, J.D., LL.M. 04.07.2014 | Client Alert

On April 3, the Senate Finance Committee approved EXPIRE — the Expiring Provisions Improvement Reform and Efficiency Act of 2014 — aiming to revive a host of tax breaks that expired on December 31, 2013. The House Ways and Means Committee is expected to have its own take on an extension package shortly. At this time, it is not certain whether any or all of these breaks will be made law.

Here are some key provisions from the Senate.

50% Bonus Depreciation & §179 Expensing Thresholds Return: The 50% bonus depreciation provisions for qualified business property would be extended through the end of 2015 and, for certain property, to 2016. Section 179’s increased expensing amounts would also be extended through 2015.

15-Year Life for Qualified Real Property Extended: Qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property will have a 15-year depreciation recovery period through the end of 2015.

Energy Efficiency Deductions for Commercial Buildings: Under §179D, deductions of up to $1.80 per square foot for energy efficient commercial building property would be extended for two years through the end of 2015. Also, as an aide to nonprofits, the rules were modified to allow these organizations to allocate deductions to architects and engineers.

R&D Tax Credit Extended: Research credits for qualified research activities would extend through the end of 2015.

Energy Efficiency Credits for Property Developers Get Two More Years: A two-year extension would allow apartment developers and home builders a $2,000 tax credit, under §45L, for new energy efficient homes that are first leased or sold by the end of 2015. As an added bonus, developers and builders would be able to amend returns to claim tax credits they missed from previous years.

Hiring & Employment Credits Extended: Work Opportunity Tax Credits and Empowerment Zone Tax Incentives would be extended through the end of 2015.

Questions? Contact your Berdon advisor or Kayte Steinert-Threlkeld at 212.699.6708 | ksteinert@berdonllp.com.

 

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