Many taxpayers have questions about the likelihood that the provisions for the Section 179 depreciation deduction, and the the bonus first year deduction will be enacted for the 2014 tax year. The legislative history on that matter is as follows:
- The House of Representatives approved H.R. 4457 in June of 2014. That bill extended permanently the Section 179 expensing limit of $500,000.
- The Senate Finance Committee approved their tax extender bill (S.2260) which included provisions for the 500,000 Section 179 expensing limit, but Majority Leader Harry Reid would not allow the bill to reach the Senate Floor until after the November elections.
In summary, the Senate needs to consider the bill (S.2260) and if it is passed, a conference committee will be required to reconcile the differences in the House Bill (H.R. 4457) and the Senate Bill(S.2260). The final bill with the reconciled differences will then be presented to the President for his signature.
The House version is making many of the Extender issues permanent changes rather than having to reconsider them every few years, while the Senate version is not making them permanent. The Senate version wants permanent tax reform to address the issues, and the House version wants their H.R. 2260 to deal with the issues in spite of possible tax reform.
As always, it makes a difference if we contact our elected representatives and senators to urge them to deal with these legislative issues sooner than later. Let your voice be heard if you have reasons to want the legislation dealt with before the end of the year.
It is likely the “Republican wave” we witnessed in the elections of yesterday will make some difference in the votes of the current elected Senators and Representatives, but our emails and phone calls will encourage the vote to be brought to the Senate floor.