PATH Act and Some Key Wins for Small Business on Taxes

tax-breaksOn December 18th the Protecting Americans from Tax Hikes (PATH) Act of 2015 was signed into law.

The are some real benefits to SMBs in this legislation, 3 of the most notable:

Section 179 Depreciation that permits businesses to expense $500,000 of machinery and equipment purchases rather than depreciate over useful lives.  This deduction isn’t new but has been a year-to-year decision as to whether it would be extended.  On January 1, 2015 Section 179 had reverted to it’s previous cap of $25,000.  The $500,000 cap has been reinstated and importantly made permanent and indexed to inflation.  Eliminating this uncertainty is significant for business planning purposes and towards economic growth.

Bonus Depreciation Extended and enables businesses to deduct 50% of the cost of property put into service during 2015 though 2017.  This depreciation is phased down to 40% and 30% for the years 2018 and 2019 respectively.

R&D Tax Credit has been made permanent as well.  Businesses with revenues of $50 million or less can take this credit against alternative minimum tax and in some cases payroll taxes.

If you haven’t considered in your business strategy …. you should!

Full text of proposal that passed can be read here.

In today’s competitive world your effective CFO isn’t just your “numbers guy” but plays a key role in your strategy, your game plan for success. If you’d like to discuss your needs or just chat please feel to reach out 917.912.9176 or

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