On December 18, the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) was signed into law. Many popular tax breaks had expired December 31, 2014, so for them to be available for 2015, Congress had to pass legislation extending them. But the PATH Act does more than that.
Instead of extending breaks for just a year or two—which has been Congress’s modus operandi in recent years—the PATH Act makes many popular breaks permanent and extends others for several years. The PATH Act also enhances certain breaks and puts a moratorium on the Affordable Care Act’s controversial medical device excise tax.
However, it’s not all good news for taxpayers. For example, while the PATH Act does extend bonus depreciation through 2019, it gradually reduces its benefits. And it extends some breaks only through 2016.
Here’s a quick rundown of some of the key breaks that have been extended or made permanent that may benefit you or your business.
Many of the PATH Act’s provisions provide an opportunity for taxpayers to enjoy significant tax savings on their 2015 income tax returns—but quick action (before January 1, 2016) may be needed to take advantage of some of them.
To learn what you need to do before year-end to claim these and other tax-saving opportunities, contact your Moss Adams professional.