Waiting until the last minute, Congress passed the Protecting Americans From Tax Hikes Act Of 2015 (PATH Act) on December 18, 2015 and the President signed the Act the same day. This so-called extenders bill is far more substantial than similar legislation seen in previous years. The PATH Act extends permanently over 20 business and individual tax breaks (that had previously expired or were scheduled to expire in the near future); revives several popular tax breaks for 5 more years (through 2019); and, extends many others for 2 years (through 2016). In addition, the ACT: enhances several of the previously-expired tax breaks; makes several changes to how the IRS is administered; enacts various changes to the tax rules for real estate investment trusts (REITS); and, contains other miscellaneous changes. Several members of Congress have stated that they are hoping the PATH Act will pave the way for bigger tax changes in 2016 and 2017. Of course, only time will tell.
We have prepared an overview highlighting the impact of the PATH Act on the most significant individual and business tax breaks that had previously expired at the end of 2014.
If you have any questions please do not hesitate to contact us.