Last week, the “Temporary Payroll Tax Cut Continuation Act of 2011” (H.R. 3765) was signed into law. This bill extend the much talked about payroll tax cut and unemployment benefits until the end of February, 2012.
Unfortunately, the Senate stripped the language regarding an extension of the 100% bonus depreciation. Consequently, these provisions have not been extended and we revert back to 50% bonus depreciation for 2012 (pending further debate). Congress also failed to act on a host of tax provisions which expire at the end of the year. The most popular being the “refundable education credit” for qualified college tuition and the deduction for sales tax.
We will keep you posted as the debate continues in 2012. Please let us know if you have any questions regarding this new law or its implications to your specific situation.