Taxpayers may now enjoy significant savings for the 2014 tax year. On December 19, the President approved the Tax Increase Prevention Act of 2014. The Act retroactively renews several provisions, collectively referred to as tax extenders, that expired on December 31, 2013. Although the bill is a temporary solution and will not renew the incentives for 2015 without further legislative action, it represents hundreds of thousands of dollars in savings for many individuals and businesses.
The legislation will extend important provisions such as:
The Research and Development Tax Credit – The Act would apply this credit to amounts spent on qualified research expenses during 2014. Taxpayers that have already filed a return for part of 2014 and did not claim the R&D Credit because it was expired at the time may file an amended return and receive a refund for their qualified activities. (Source: https://tax.thomsonreuters.com/media-resources/news-media-resources/checkpoint-news/daily-newsstand/ria-special-study-business-tax-provisions-retroactively-extended-tax-increase-prevention-act-2014?utm_source=PR&utm_medium=PressRelease&utm_campaign=TIPA201). For more information about determining eligibility for this lucrative credit, see https://capitalreviewgroup.com/research-and-development-rd/.
The Work Opportunity Tax Credit – WOTC incentivizes employers to hire new employees from qualifying groups that have faced significant barriers to joining the workforce. The credit may equal up to $9,000 per new hire. The legislation would apply to wages paid to qualifying employees who began work during 2014. For more information about WOTC, visit https://capitalreviewgroup.com/wotc/.
Increased expensing limitations and treatment of certain real property as §179D property – This incentive provides a tax deduction of up to $1.80 per square foot for improving the energy efficiency of existing buildings. It also applies to new construction and is available to tenant-owned leasehold improvements and the primary designers of government buildings. Incentivized areas include lighting, HVAC, the building envelope, and the whole building. To learn more about syncing your engineering and tax strategies in order to maximize return on investment, visit https://capitalreviewgroup.com/certification-for-179d-deduction/.
Other provisions extended by the Tax Increase Prevention Act include fifteen-year straight-line cost recovery for improvements on qualified leaseholds, restaurant and retail buildings, bonus depreciation, the temporary minimum low-income housing tax credit rate for non-federally subsidized buildings, and the new markets tax credit.
At Capital Review Group, our expertise transcends the political whims that can make tax planning particularly confusing. By making it our business to stay current on the latest changes, we can help you navigate the unpredictable realm of tax law and secure maximum savings for your business.