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Sunday, January 10, 2016

PATH and Many Tax Changes - PL 114-113

Big drama as 2015 ended was for Congress to fund the government for the 2016 fiscal year, extend the 50+ tax provisions that expired at 12/31/14, and make numerous other tax changes. The extenders part of P.L. 114-113 (12/18/15) includes 126 changes with several being multi-part changes (for example, making Section 179 permanent with additional changes to it). The extenders part of the legislation is called PATH - Protecting Americans from Tax Hikes.

I have a document here that you may find helpful. It includes:
  • Links to P.L. 114-113 and PATH documents
  • Section 179, Election to expense certain depreciable business assets - showing the changes via track changes
  • Section 25D, Residential energy efficient property - showing the changes via track changes
I include the track changes format because it often really helps in seeing the specific changes. For example, some brief updates may note that the Section 25D credit was extended and phases out in later years. This credit was already in existence through 2016 before PATH.  PATH extends 2 of the 5 credits of Section 25R past 2016 and phases them out through 2021.  See my pdf document for the details.

I'll have more on the relevance of all of these changes to tax reform soon.

What do you think about all of the changes?

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