Aaron Fobes, Julia Lawless (202) 224-4515
Permanent Pro-Growth Tax Relief for American Job Creators
The PATH Act Boosts Economic Growth by Promoting Research, Investment, and Development Here at Home
After years of facing uncertainty with their tax bill, the bipartisan PATH Act ends the guessing game for American job creators and provides permanent tax relief aimed to grow our economy here at home.
With measures targeted to small business expensing, research and development, and accelerated depreciation, the PATH Act gives job creators large and small the ability to plan ahead and invest in the American economy.
Here’s a look at the PATH Act’s incentives for economic growth:
Small Business: Permanent Section 179 Expensing
- The provision permanently extends the small business expensing limitation and phase-out amounts in effect from 2010 to 2014; and sets a new threshold at $500,000 and $2 million, respectively, from the current amounts of $25,000 and $200,000, respectively. That means immediate tax relief for main street business owners investing in new office equipment, technology, or other items they may need to grow their company and hire new workers.
Big Business and Small Business: Permanent Research and Development Tax Credit
- This provision permanently extends the research & development (R&D) tax credit and, for the first time, allows for eligible small businesses to claim the credit against the alternative minimum tax (AMT) liability or against the employer’s payroll tax liability. That means businesses large and small have more incentives to invest in American innovation and create jobs here at home – from Main Street to Wall Street.
Retail and Restaurants on Main Street: Permanent 15-Year Depreciation
- The provision permanently extends the 15-year recovery period for qualified leasehold improvements, qualified restaurant property, and qualified retail improvement property. For restaurants and retail on Main Street, that means a lessened tax burden and more capital to invest in their businesses, workers, and communities.
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