Protecting Americans from Tax Hikes Act of 2015

Protecting Americans from Tax Hikes Act of 2015

By Isler Northwest LLC
December 30, 2015

On December 18, the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) was signed by President Obama and became law. As is often the case at the end of the year, Congress had to pass legislation to extend popular tax breaks for the 2015 tax year which had officially expired on December 31, 2014. Unlike in past years when tax extenders passed through Congress at the end of the year are only for the current tax year, the Path Act makes many of these tax breaks permanent and extends others for several years.

Below is a list of some of the most important tax breaks that have been extended or made permanent under the PATH Act:

Tax Breaks Made Permanent in 2015

  • American Opportunity Tax Credit
  • Enhanced child credit
  • The R&D Tax Credit
  • Enhanced depreciation for qualified leasehold-, restaurant-, and retail-improvement property
  • Enhanced Section 179 expensing election
  • Parity for Transit Benefits
  • Reduction in recognition period for built-in gains tax for S corporation
  • The deduction for charitable contributions of food inventory
  • Tax-free IRA distributions made to charity
  • A small deduction for classroom related expenses for elementary and secondary school teachers
  • Deduction for state and local sales tax expenses
  • Small business stock gains exclusion

Tax Breaks Extended Through 2016

  • Deduction for qualified tuition and related higher education expenses
  • Mortgage insurance premiums deduction
  • Mortgage debt forgiveness exclusion
  • Numerous energy efficiency tax credits

Tax Breaks Extended Through 2019

  • Bonus depreciation – Note tax benefit is reduced each year after 2015
  • New Markets Tax Credit
  • Work Opportunity Tax Credit

Isler Northwest LLC is a firm of certified public accountants and business advisors based in Portland, Oregon. Our local, regional, and global resources, our expertise, and our emphasis on innovative solutions and continuity create value for our clients. Our service goal at Isler NW is to earn our clients’ trust in us as their primary business and financial advisors.

Isler Northwest

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Portland, Oregon 97201