House Approves Tax Breaks

The U.S. House of Representatives last week voted to pass a one-year extension of more than 50 tax breaks that expired at the end of 2013, including the Section 179 provision allowing a full depreciation deduction of up to $500,000 on most equipment and machinery in the current year. The “bare minimum” measure was the only option left to the House following an Obama veto threat of a deal that would have made certain provisions permanent.

Most believe the bipartisan vote of 378-46 in the House will carryover into the Senate. Chances are good that, if the package is passed without amendments by the Senate, President Obama will sign the legislation into law, with just days left before Congress adjourns for the year.

While we applaud this anticipated action, approval of tax provisions that will expire again in a matter of days is unacceptable for business planning. Let’s hope that 2015 is the year Congress addresses long-term comprehensive tax-code overhaul. S