National Tax Alert!
On December 15th of 2015, House Speaker Paul Ryan, R-Wis., announced to the Republican lawmakers during a conference meeting that negotiators have reached an agreement in principle on a tax-extenders package worth approximately $800 billion. In addition, an agreement was also reached that would fund the federal government through September 30th of 2016. The bills are expected to arrive on the House floor as early as December 17th with the Senate consideration expected before Congress adjourns for recess.
As a synopsis, the proposed tax-extenders package called for making permanent a number of tax extenders equally split 50-50 between business entities and individuals. Under the proposal, the tax-extenders package would make permanent the Research and Development Tax Credit Program; I.R.C. § 179 Expensing; the Earned Income Tax Credit Program; and the Work Opportunity Tax Credit Program. Furthermore, the proposed tax-extenders package included modifications to the Patient Protection and Affordable Care Act (PPACA; P.L. 111-148), with a two-year suspension of the Medical Device tax and the “Cadillac” tax on high-end Health Insurance plans. Reports indicated that both provisions were included in the final agreement.
As a caveat, both the House of Representatives and the Senate must still compromise and present the President with a unified bill before any of these tax extender proposals can be signed into law before the end of the 2015 calendar year-end.
Click here to download a copy of the proposed legislation.