Shortly before adjourning for the year, the Senate approved retroactive extensions for a $41.6-billion package of tax breaks, including incentives for heavy-equipment purchases and renewable-energy projects, but lawmakers failed to extend the federal backup program for terrorism risks.
The Senate passed a tax “extenders” measure by a 76-16 vote late on Dec. 16, sending the bill to the White House for President Obama’s expected signature. The House had cleared the measure on Dec. 3 by a wide margin.
The legislation puts back into effect for all of 2014 a group of breaks that expired at the end of last year.
The Association of Equipment Manufacturers backs the provisions allowing companies to take advantage of bonus depreciation and Section 179 “expensing” for capital equipment purchases made throughout calendar year 2014.
The American Institute of Architects welcomed the bill's provision extending the Section 179D tax deduction for energy- efficient buildings to apply to facilities placed in service during 2014. A public-building owner can allocate that deductin to the building's designer.