U.S. Rep. Bob Dold (R-IL) called the recent bipartisan passage of legislation to provide tax certainty to small businesses and American families “a big step” on Thursday.
The Protecting Americans from Tax Hikes Act, H.R. 2029, which passed by a bipartisan vote of 318-109, makes the Research and Development Tax Credit permanent, as well as section 179 property expensing. It also extends for five years and modifies bonus depreciation and extends the moratorium on the medical device excise sales tax for two years.
“Today we took a big step toward making our tax code more efficient, simple and fair,” Dold said. “In past years, ad hoc tax policies have prevented small businesses from investing in our communities and hindered families trying to plan ahead for the next year. This historic, bipartisan reform makes permanent many vital tax provisions to help struggling families keep more of their hard earned money, provide certainty to small businesses, foster job creation and boost economic growth.
“As a member of the Committee on Ways and Means, I am proud to have fought for many important provisions to promote innovation such as making permanent the Research and Development Tax Credit. I commend Chairman Brady and the other members of our committee for their work on this important, bipartisan measure.”
To aid low- and middle-income families, the legislation makes permanent the enhanced earned income tax credit, the enhanced child tax credit and low-income housing tax credit rates for non-federal subsidized buildings. It also modifies and extends by five years the work opportunity tax credit.
To help families pay for education, the bill makes permanent the enhanced American opportunity tax credit and the deduction of certain expenses for elementary and secondary school teachers. It also extends the above-the-line deduction for qualified tuition and related expenses and improves section 529 accounts.