Part Two: Businesses
While part one discussed provisions relating to individuals, part two outlines the provisions and highlights that pertain to businesses. They are summarized below:
Extenders for Businesses: Permanent Extensions
- Section 179 – The expensing limit has now been permanently set at $500,000 with a $2 million overall investment limit.
- Research Tax Credit – This credit is now permanent and has been increased from 14% to 20%.
- 100-Percent Gain Exclusion on Qualified Small Business Stock held for more than 5 years has been made permanent.
- Other Permanent Extensions:
- Reduced recognition period for S corporation Built-In Gains Tax
- 15-year straight-line cost recovery for qualified leasehold improvements, restaurant property and retail improvements
- Employer wage credit for employees who are active duty members of the uniformed services
- Charitable deductions for the contribution of food inventory
Five-Year Extensions
- Bonus Depreciation – The Act extends bonus depreciation for five years with the following phase-outs: 50% for 2015-2017, 40% in 2018; and 30% in 2019.
- Work Opportunity Credit – Extended through 2019. The PATH Act also enhances the WOTC for employers that hire long-term unemployed individuals.
Two-Year Business Extenders
- Indian employment credit/accelerated depreciation
- Railroad track maintenance credit
- Film/Television Expensing
- Empowerment Zones Incentives
- Three-year recovery period for certain race horses
- Seven-year recovery period for motorsports entertainment complexes