Cramer: House Passes $629 Billion in Tax Relief

Press Release

Congressman Kevin Cramer announced today the U.S. House of Representatives passed H.R. 2029, the Protecting Americans from Tax Hikes (PATH) Act of 2015. In addition to providing $629 billion in tax relief for American taxpayers and businesses, it reins in the Internal Revenue Service, provides certainty for families and taxpayers as they plan for the future and offers incentives for charitable activities.

A number of temporary tax provisions in the Internal Revenue Code expired at the end of 2014, and had these tax provisions not extended retroactively, taxpayers would have been unable to use these credits and deductions when filing their 2015 tax returns. The PATH Act makes permanent nearly two dozen of these provisions and extends many the others, preventing tax increases on families and businesses that will begin filing their 2015 tax returns early next year.

"This bill is a major step toward reforming our complicated and punitive tax code," said Cramer. "It provides families and small businesses with an improved tax regulatory environment to prosper which will result in higher paying jobs throughout the country."

Cramer said a highlight of the bill is making Section 179 expensing permanent. "I hear from North Dakota farmers and other small business owners about this nearly every day. Making this deduction permanent gives them the certainty to make long-term capital purchase decisions which will help create good paying jobs."

The Section 179 equipment tax deduction allows small businesses the ability to deduct those costs immediately, instead of over the useful life of the property. From 2010 through 2014, the expensing limitation was raised repeatedly on a short-term basis to $500,000. This legislation makes the deduction permanent.

"Any tax reform package needed to include Section 179 expensing. The bill also makes Individual Retirement Account charitable rollovers permanent," said Cramer. "Allowing individuals the opportunity to donate their retirement accounts to their church or charity enhances and rewards their community. Charities deliver important services with compassion which is uncommon for government programs."

Cramer has long advocated for making Section 179 expensing permanent. On Feb 13, he spoke about its impact on farmers and small business owners in North Dakota.

Source