News Release
« BackTax Measures for Manufacturers
Wednesday, December 16, 2009
In early December, the House passed a measure that would extend important expiring tax provisions for manufacturers and small businesses. The bill, which passed the House by a vote of 241-181, would extend the research and development tax credit, depreciation for business equipment and other provisions important to manufacturers. Although many of the tax provisions expire at the end of this year, certain portions of the bill may stall progress in the Senate. Some provisions of the House-passed bill include:
• Extension of the R&D credit. The bill would extend for one year (through 2010) the research credit.
• Extension of five-year depreciation for farming business machinery and equipment. The bill would extend for one year (through 2010) the provision that provides a five-year recovery period for certain machinery and equipment which is used in a farming business.
• Extension of employer wage credit for activated military reservists. The bill would extend for one year (through 2010) the provision that provides eligible small business employers with a credit against the taxpayer’s income tax liability for a taxable year in an amount equal to 20 percent of the sum of differential wage payments to activated military reservists.
Also of great importance, Congress is considering further action on the estate tax. Without a passed compromise, the estate tax would expire for a year in 2010, but under current law, the tax snaps back to 55 percent in 2011. Many provisions are currently being debated, with a leading measure to permanently set the estate tax rate of 35 percent.
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