Protecting Americans from Tax Hikes (PATH) Act of 2015

On December 18, 2015, President Obama signed into law the “Protecting Americans from Tax Hikes (PATH) Act of 2015.” The Act permanently extends over 20 tax relief provisions that have long been temporary.

Below are a few highlights of the provisions that are included in the Act. For the full summary of extended tax breaks, please click here.

Individual Tax Breaks

  • Nontaxable IRA transfers to eligible charities made permanent
  • Enhanced Child Tax Credit made permanent
  • Enhanced American Opportunity Tax Credit made permanent
  • Enhanced Earned Income Tax Credit made permanent
  • Above-the-line deductions for educator expenses made permanent
  • State and Local Sales Tax deductions made permanent

Business Tax Breaks

  • Research Credit permanently extended
  • Reduction in S Corp recognition period for built-in gains to five years permanently extended

Depreciation & Expensing Provisions

  • Retroactively extends and makes permanent the $500,000 expensing limitation and $2 million phase-out amounts, both indexed for inflation
  • 15-year write-off for qualified leasehold and retail improvements and restaurant property made permanent
  • Bonus first-year depreciation extended through 2019

Should you have any questions, please contact our office at (402) 423-4343. As always, our team of trusted advisors is here to help identify key tax planning strategies to minimize your current and future tax liabilities.

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