Spending Bill Passes – Including Tax Extenders
On Dec 17 and 18, the U.S. House of Representatives and the U.S. Senate approved spending bills designed to fund the government through 2016. President Barack Obama was expected to sign the bill on the evening of Dec. 18.
On the morning of Dec. 18, the U.S. House approved its version of the legislation in a 318-109 vote. A bill passed the evening before addresses “tax extenders” that are important to businesses nationwide, including textile services companies. The tax bill made some of the provisions permanent, while others were extended to 2019. Some of the permanent measures include the tax credit for research and development as well as Section 179 expensing for small businesses, which increases the deduction from $25,000 to $500,000. The 50% bonus depreciation allowance was extended through 2019.
Many House Republicans are satisfied with the bill because it ends the chaotic and complicated annual approval of tax credits and gives businesses greater certainty about their operations and tax planning. One downside is the fact that the cost of the tax legislation is not offset and will add to the federal deficit.
The bill moved to the Senate on Friday morning, where it combined the $622 billion House bill with the $1.1 trillion omnibus bill to fund the government, and other budget items, through September 2016. The combined $1.8 trillion package passed the Senate 65-33. Click here and here for details.
President Obama suffered setbacks to the Affordable Care Act in the tax extenders bill, including a two-year delay in the implementation of the “Cadillac Tax.” Nonetheless, he agreed to sign the spending measure.
TRSA worked with a number of organizations, particularly the National Association of Manufacturers (NAM), to accomplish this important victory for our members regarding the tax extenders bill. “With our efforts, Congress has begun to produce more pro-business policies and recognize the significant contributions that businesses provide to the U.S. economy and to our society at large,” said Kevin Schwalb, TRSA’s vice president of government relations. “That’s why TRSA will continue to work on issues of importance to TRSA members and help elect pro-business members of Congress through TRSAPAC.”