summary
Introduced
02/02/2015
02/02/2015
In Committee
02/04/2015
02/04/2015
Crossed Over
02/23/2015
02/23/2015
Passed
07/14/2016
07/14/2016
Dead
Signed/Enacted/Adopted
07/15/2016
07/15/2016
Introduced Session
114th Congress
Bill Summary
America's Small Business Tax Relief Act of 2015 (Sec. 2) This bill amends the Internal Revenue Code to make permanent after 2014 the $500,000 allowance for the expensing of depreciable business property (section 179 property) and the $2 million threshold after which the amount of such allowance is reduced. Both the allowance and the threshold amount are indexed for inflation for taxable years beginning after 2015. The allowance is also made permanent for computer software and qualified real property (i.e., qualified leasehold improvement property, restaurant property, and retail improvement property). The exclusion of air conditioning and heating units from the definition of section 179 property is eliminated. The taxpayer is allowed to revoke an election to expense section 179 property without first obtaining consent from the Department of the Treasury. (Sec. 3) The reduction (from 10 years to 5 years) of the period during which the built-in gains of an S corporation are subject to tax is made permanent. (Sec. 4) The tax rule requiring a decrease in the basis of a shareholder's stock in an S corporation that makes tax deductible charitable contributions of property is made permanent. (Sec. 5) The budgetary effects of this Act are excluded from PAYGO scorecards under the Statutory Pay-As-You-Go Act of 2010.
AI Summary
This bill, the America's Small Business Tax Relief Act of 2015, aims to provide permanent tax benefits for small businesses by making several provisions permanent. It allows businesses to permanently expense up to $500,000 of depreciable business property, known as "section 179 property," and maintains the $2 million threshold before this allowance is reduced. These amounts will be adjusted for inflation annually. The bill also makes permanent the allowance for expensing computer software and qualified real property, which includes improvements to leased spaces, restaurants, and retail properties, and removes air conditioning and heating units from the list of items that cannot be expensed under section 179. Furthermore, it allows taxpayers to revoke their election to expense section 179 property without needing prior consent from the Department of the Treasury. The bill also makes permanent the reduced 5-year period for taxing built-in gains of an S corporation and the tax rule that requires a decrease in a shareholder's stock basis when an S corporation makes charitable contributions of property. Finally, the bill excludes the budgetary effects of this Act from being counted against spending limits under the Statutory Pay-As-You-Go Act of 2010.
Committee Categories
Budget and Finance
Sponsors (15)
Patrick Tiberi (R)*,
Rod Blum (R),
Cheri Bustos (D),
Ryan Costello (R),
Danny Davis (D),
Scott DesJarlais (R),
Tom Emmer (R),
Ron Kind (D),
John Kline (R),
Richard Neal (D),
Tom Reed (R),
Aaron Schock (R),
Adrian Smith (R),
Jason Smith (R),
Todd Young (R),
Last Action
Became Public Law No: 114-190. (TXT | PDF) (on 07/15/2016)
Official Document
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bill summary
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