• COVID-19
  • Insights
  • Who We Help
    •   Industrial Automation
    •   Manufacturing & Distribution
    •   A&E Professional Services
    •   International Businesses
      • ◦   Expanding Outside the U.S.
      • ◦   Expanding to the U.S.
  • Services
    •   COVID-19
      • ◦   Cash Flow Confidence Assessment
      • ◦   Maximize Your Loan Forgiveness
      • ◦   5 Key Focus Areas
      • ◦   COVID-19 Resource Center
    •   Client Accounting
      • ◦   Software Solutions
      • ◦   Accounting Support
      • ◦   Reporting
    •   Tax
      • ◦   R&D Tax Credit
      • ◦   Tax Credits & Incentives
      • ◦   Tax Structure
      • ◦   Federal Tax
      • ◦   State & Local Tax
      • ◦   Personal Tax
      • ◦   Other Tax Filings
    •   Advisory & Assurance
      • ◦   Assurance Levels
      • ◦   Reporting
      • ◦   Employee Benefit Plan Audits
      • ◦   Technical Accounting & Reporting
    •   Consulting
      • ◦   Data Analytics
      • ◦   Transaction Services
      • ◦   Business Planning
      • ◦   Succession & Exit Strategies
    •   International
      • ◦   International Tax
      • ◦   Foreign Direct Investment
      • ◦   Global Expansion
      • ◦   International Accounting
  • Events
  • Careers
    •   Why C&M
    •   Students
      • ◦   Campus Events
      • ◦   Internships
      • ◦   Reach Beyond Program
    •   Experienced Professionals
      • ◦   Team member profile videos
    •   Opportunities
    •   Employee Journals
    •   Office Tour
  • About Us
    •   How We Help
      • ◦   Service Approach
      • ◦   Affiliations
      • ◦   Communications & Technology
    •   Meet Our Team
    •   Testimonials
    •   Our Videos
    •   Our Story
  • Contact Us
  • Subscribe
CHANGE COUNTRY:
  • United States
  • 中国
  • Client Login
Clayton & McKervey Logo
  • COVID-19
  • Insights
  • Who We Help
  • Services
  • Events
  • Careers
  • About Us
  • Contact Us
  • Subscribe
    • Most Recent Insights
  1. Home
  2. Insights
  3. Congress Passes Law to Make Some “Tax Extenders” Permanent

Congress Passes Law to Make Some “Tax Extenders” Permanent

Posted by Margaret Amsden on December 21, 2015

Margaret Amsden Margaret Amsden

For most of the year, taxpayers have been wondering if the “tax extenders,” all of which expired as of December 31, 2014, would be extended again. Congress continued to say it would get done, but taxpayers entered December with no assurances. As the congressional sessions drew to a close for 2015, the House (on December 17) and the Senate (on December 18) passed a bill that went to President Obama late in the day on December 18, which was signed.

This bill included many of the “tax extenders” that had been renewed one year at a time for many years, but took a different approach by including provisions that retroactively extend the expiration date several years for some provisions, and makes others permanent. There is some hope that this is the first step to a broader overall reform of the US Tax Code, but that will need to wait until 2016, and possibly 2017. In the meantime, following is a brief summary of how this most recent bill will impact 2015 and forward.

General Business Provisions

  • Provisions made permanent include:
    • Research and Development credit.
    • Enhanced limitations for asset expensing under IRC Section 179.
  • Provisions that received a 5-year extension through 2019 include:
    • “Bonus” depreciation for qualified property.
    • The work opportunity tax credit.
    • The new markets tax credit.
  • Provisions that received a 2-year extension through the end of 2016 include:
    • The energy efficient commercial buildings deduction.
    • The special expensing rules for certain film and television productions.
    • The Indian employment tax credit.

S Corporations

  • The holding period under IRC Section 1374 related to built-in-gains are permanently extended to 5 years.
  • Provisions under IRC Section 1367 providing that a shareholder’s basis is reduced only by the basis of donated property (versus the fair market value of the property) is permanently extended.

Qualified Small Business Stock

  • For taxpayers other than corporations, the exclusion from gross income under IRC Section 1202 of 100% of the gain recognized on the sale or exchange of Qualified Small Business Stock held more than 5 years is permanently extended.

Individual and Family Provisions

  • Some of the key provisions made permanent are:
    • The enhanced child tax credit.
    • The enhanced American opportunity tax credit.
    • The enhanced earned income tax credit.
    • The deduction of certain expenses for elementary and secondary school teachers.
    • The deduction for state and local general sales taxes in lieu of state and local income taxes.
  • Three provisions particularly important to homeowners are extended through 2016:
    • The exclusion from gross income of discharge of qualified principal residence indebtedness.
    • The provision allowing mortgage insurance premiums to be treated as qualified residence interest.
    • The credit for non-business energy property.

Due Date Changes

Earlier this year, congress passed legislation that, beginning with 2016 tax returns, will change the due dates for various forms including Partnerships, S Corporations, Employee Benefit Plans and others. This trend has continued with the most recent bill which provides for changes to the due date of Forms W-2 and W-3. These forms, which have generally been due on the last day of February, will be due on or before January 31 for 2016 forms filed in early 2017.

Affordable Care Act

Congress also passed a 2-year delay in the enactment of the 40% Cadillac tax on high-cost health insurance plans. The bill also includes a 2-year delay in the excise tax on medical devices.

It should be noted that with 2016 being a presidential election year, the time period of most of these extensions and deferrals will put these issues to bed until after the election and a new Congress and President have had time to set their agendas.

Our team is always ready to help.

Please contact us for more information.

Margaret Amsden

Margaret Amsden

Shareholder, Private Client Services

Contact Margaret   |   Read Margaret's bio

related news

How to Claim R&D Tax Credits

Part four of our R&D series answers two common questions about the R&D tax credit: How do I claim the R&D tax credit? Do I really need to claim the…

Read full story

IRS Issues New Guidance on PPP and Employee Retention Credit Eligibility

The IRS issued highly anticipated guidance regarding the employee retention credit (ERC) on March 1. We have previously outlined how the Consolidated Appropriations Act, passed in December, permitted employers receiving…

Read full story

Honoring International Women’s Day

In honor of International Women’s Day, I’d like to take a moment to recognize the talented women who have helped build our outstanding reputation within the business community – both…

Read full story

How to Calculate R&D Tax Credits

As we’ve seen in the first two installments of this series, business owners often miss out on the R&D tax credit opportunity and the bottom-line infusion it can provide. Many…

Read full story

Doing Business in Mexico: What to Expect this Year

Without a doubt, this year will be interesting for Mexico. To start, it’s an election year and we all know what that means…a lot of uncertainty. As the global pandemic…

Read full story

Categories

Jump directly to the topics that matter to you most.

  • A&E Professional Services
  • About Us
  • Advisory & Assurance
  • Business Owners
  • C&M Press Releases
  • Careers
  • China Consulting
  • Clayton & McKervey
  • Client Accounting Services
  • Consulting
  • COVID-19
  • Data Analytics
  • Estate Planning
  • Expanding Outside the U.S.
  • Expanding to the U.S.
  • From the President
  • Industrial Automation
  • International
  • Manufacturing & Distribution
  • Mexico Consulting
  • Podcasts
  • Private Client Services
  • Tax & Tax Credits
  • Transaction Services
  • Videos

Authors

Read news direct from our managers and stakeholders.

    • Ben Smith
    • Beth Butchart
    • Bryan Powrozek
    • Carlos Calderon
    • Casey Haggerty
    • Clayton & McKervey
    • Dave Van Damme
    • Denise Asker
    • Eric Lin
    • Jim Biehl
    • Julie Killian
    • Kevin Johns
    • Margaret Amsden
    • Miroslav Georgiev
    • Nina Wang
    • Rob Dutkiewicz
    • Ruben Ramirez
    • Sarah Russell
    • Sue Tuson
    • Tarah Ablett
    • Teresa Gordon
    • Tim Finerty
    • Tim Hilligoss
    • Wendy Reedy

Additional Resources

Additional news from Clayton & McKervey can be found below.

  • Subscribe to our email newsletter
  • View upcoming events
  • Contact us to let us know how we can help you
  • Main Content
  • Related Insights

Congress Passes Law to Make Some “Tax Extenders” Permanent

Posted by Margaret Amsden on December 21, 2015

Margaret Amsden

For most of the year, taxpayers have been wondering if the “tax extenders,” all of which expired as of December 31, 2014, would be extended again. Congress continued to say it would get done, but taxpayers entered December with no assurances. As the congressional sessions drew to a close for 2015, the House (on December 17) and the Senate (on December 18) passed a bill that went to President Obama late in the day on December 18, which was signed.

This bill included many of the “tax extenders” that had been renewed one year at a time for many years, but took a different approach by including provisions that retroactively extend the expiration date several years for some provisions, and makes others permanent. There is some hope that this is the first step to a broader overall reform of the US Tax Code, but that will need to wait until 2016, and possibly 2017. In the meantime, following is a brief summary of how this most recent bill will impact 2015 and forward.

General Business Provisions

  • Provisions made permanent include:
    • Research and Development credit.
    • Enhanced limitations for asset expensing under IRC Section 179.
  • Provisions that received a 5-year extension through 2019 include:
    • “Bonus” depreciation for qualified property.
    • The work opportunity tax credit.
    • The new markets tax credit.
  • Provisions that received a 2-year extension through the end of 2016 include:
    • The energy efficient commercial buildings deduction.
    • The special expensing rules for certain film and television productions.
    • The Indian employment tax credit.

S Corporations

  • The holding period under IRC Section 1374 related to built-in-gains are permanently extended to 5 years.
  • Provisions under IRC Section 1367 providing that a shareholder’s basis is reduced only by the basis of donated property (versus the fair market value of the property) is permanently extended.

Qualified Small Business Stock

  • For taxpayers other than corporations, the exclusion from gross income under IRC Section 1202 of 100% of the gain recognized on the sale or exchange of Qualified Small Business Stock held more than 5 years is permanently extended.

Individual and Family Provisions

  • Some of the key provisions made permanent are:
    • The enhanced child tax credit.
    • The enhanced American opportunity tax credit.
    • The enhanced earned income tax credit.
    • The deduction of certain expenses for elementary and secondary school teachers.
    • The deduction for state and local general sales taxes in lieu of state and local income taxes.
  • Three provisions particularly important to homeowners are extended through 2016:
    • The exclusion from gross income of discharge of qualified principal residence indebtedness.
    • The provision allowing mortgage insurance premiums to be treated as qualified residence interest.
    • The credit for non-business energy property.

Due Date Changes

Earlier this year, congress passed legislation that, beginning with 2016 tax returns, will change the due dates for various forms including Partnerships, S Corporations, Employee Benefit Plans and others. This trend has continued with the most recent bill which provides for changes to the due date of Forms W-2 and W-3. These forms, which have generally been due on the last day of February, will be due on or before January 31 for 2016 forms filed in early 2017.

Affordable Care Act

Congress also passed a 2-year delay in the enactment of the 40% Cadillac tax on high-cost health insurance plans. The bill also includes a 2-year delay in the excise tax on medical devices.

It should be noted that with 2016 being a presidential election year, the time period of most of these extensions and deferrals will put these issues to bed until after the election and a new Congress and President have had time to set their agendas.

Our team is always ready to help.

Please contact us for more information.

Margaret Amsden

Shareholder, Private Client Services

Contact Margaret   |   Read Margaret's bio

related news

How to Claim R&D Tax Credits

Part four of our R&D series answers two common questions about the R&D tax credit: How do I claim the R&D tax credit? Do I really need to claim the…

Read full story

IRS Issues New Guidance on PPP and Employee Retention Credit Eligibility

The IRS issued highly anticipated guidance regarding the employee retention credit (ERC) on March 1. We have previously outlined how the Consolidated Appropriations Act, passed in December, permitted employers receiving…

Read full story

Honoring International Women’s Day

In honor of International Women’s Day, I’d like to take a moment to recognize the talented women who have helped build our outstanding reputation within the business community – both…

Read full story

How to Calculate R&D Tax Credits

As we’ve seen in the first two installments of this series, business owners often miss out on the R&D tax credit opportunity and the bottom-line infusion it can provide. Many…

Read full story

Doing Business in Mexico: What to Expect this Year

Without a doubt, this year will be interesting for Mexico. To start, it’s an election year and we all know what that means…a lot of uncertainty. As the global pandemic…

Read full story

Categories

Jump directly to the topics that matter to you most.

  • A&E Professional Services
  • About Us
  • Advisory & Assurance
  • Business Owners
  • C&M Press Releases
  • Careers
  • China Consulting
  • Clayton & McKervey
  • Client Accounting Services
  • Consulting
  • COVID-19
  • Data Analytics
  • Estate Planning
  • Expanding Outside the U.S.
  • Expanding to the U.S.
  • From the President
  • Industrial Automation
  • International
  • Manufacturing & Distribution
  • Mexico Consulting
  • Podcasts
  • Private Client Services
  • Tax & Tax Credits
  • Transaction Services
  • Videos

Authors

Read news direct from our managers and stakeholders.

  • Ben Smith
  • Beth Butchart
  • Bryan Powrozek
  • Carlos Calderon
  • Casey Haggerty
  • Clayton & McKervey
  • Dave Van Damme
  • Denise Asker
  • Eric Lin
  • Jim Biehl
  • Julie Killian
  • Kevin Johns
  • Margaret Amsden
  • Miroslav Georgiev
  • Nina Wang
  • Rob Dutkiewicz
  • Ruben Ramirez
  • Sarah Russell
  • Sue Tuson
  • Tarah Ablett
  • Teresa Gordon
  • Tim Finerty
  • Tim Hilligoss
  • Wendy Reedy

Additional Resources

Additional news from Clayton & McKervey can be found below.

  • Subscribe to our email newsletter
  • View upcoming events
  • Contact us to let us know how we can help you

Website

  • COVID-19
  • Insights
  • Who We Help
  • Services
  • Events
  • Careers
  • About Us
  • Contact Us
  • Subscribe

Location

+1 248.208.8860
2000 Town Center
Suite 1800
Southfield, MI
48075 | USA

Connect

  • Events
  • Newsletter
  • Client Login

Social

  • LinkedIn
  • Facebook
  • Twitter
  • Glassdoor
  • YouTube
  • Instagram

Awards

DFP Top Work Places Best & Brightest
Prime Global

Tax | Accounting | Assurance | Consulting | Highly technical and accessible team of CPAs helping growth driven, closely held, middle market companies compete in the global marketplace. Michigan-based accountants and advisors focused on helping business owners in the United States and throughout Europe and China.

Privacy Policy Disclaimer

© 2021 Clayton & McKervey