Federal Tax Alert - December 2015

President Signs Extenders And Omnibus Acts, Impacting Broad Range Of Provisions

Just before recessing for the holidays, the House and Senate passed the Pro­tecting Americans from Tax Hikes Act of 2015 (PATH Act). President Obama signed the Act and a FY 2016 omnibus on December 18. The Act does considerably more than the typical tax extenders legisla­tion seen in prior years. It makes perma­nent over 20 key tax provisions, including the research tax credit, enhanced Code Sec. 179 expensing, and the American Oppor­tunity Tax Credit. It also extends other pro­visions, including bonus depreciation, for five years; and revives many others for two years. In addition, many extenders have been enhanced. Further, the Act imposes a two-year moratorium on the ACA medical device excise tax. The House passed the Act on December 17 by a vote of 318-109; The Senate approved the Act along with the FY 2016 omnibus on December 18 by a vote of 65 to 33.