Tax Extenders Package Means Main Street’s on PATH to Economic Security
WASHINGTON – The Main Street Partnership’s President Sarah Chamberlain today made the following statement after the House of Representatives passed the Protecting Americans from Tax Hikes (PATH) Act:
“With much of the country already frustrated with Washington, today’s passage of the tax extenders bill means peace of mind and economic security on Main Street,” said Chamberlain. “Certainty in our tax code is the best path to grow our economy. Today’s vote means next year, families and job creators will have more money to invest in their businesses and be able to plan without the strong arms of Washington holding them back.”
Highlights of the extenders package include:
- R&D credit: The R&D tax credit has been repeatedly extended since 1981. With a permanent research credit, business will have greater certainty when committing to investments in research and development. The Joint Committee on Taxation, Congress’ independent, non-partisan referee for tax legislation, estimates that making the R&D credit permanent will increase the amount of research and development American companies undertake by 10 percent.
- Code section 179 expensing: Immediate expensing helps cyclical businesses, especially farms, to invest in new property and equipment in profitable years and depreciate lost value as lost income against the leaner years with reduced cash flow so they can continue to make investments.
- Child Tax Credit: Makes permanent extension of the child care tax credit for families of $1,000 per child.
- Earned Income Tax Credit: Makes permanent the earned income tax credit for low and middle income couples with three or more children.
- Permanent extension of the deduction for certain expenses and professional development of elementary/secondary teachers.