Increased Sec. 179 Expensing and R&D Tax Credit now permanent – Bonus Depreciation extended

In an unexpected finish to 2015, Congress adjourned for the year with a rare show of bipartisanship and a nice parting gift to manufacturers: a new law which includes permanent $500,000 Sec. 179 expensing, a permanent R&D tax credit and a five-year extension of  bonus depreciation (50% in 2015-17, 40% in 2018, 30% in 2019). All are effective for the 2015 tax year. 

The provisions are part of the historic $1.8 trillion tax and spending package that overwhelmingly passed Congress in December. The compromise measure funds the government through the remainder of the 2016 fiscal year (a priority for Democrats) and restores the 50+ expired tax provisions (22 of them permanently) known as the “tax extenders” (a GOP priority). Its enactment is a major victory for AMT members and should give manufacturing a boost heading into the New Year.

The depreciation provisions, especially, can directly impact your sales and investment. Several companies even incorporate a summary into their sales toolboxes. Below are two examples of how they can work for you and your customers.


Download a one-page fact sheet that can be personalized with your company information.

This tax package is one of the most significant steps Congress has taken toward comprehensive tax reform in decades. AMT worked nearly 20 years on behalf of our members for this result, alongside a coalition of determined manufacturing organizations and companies. Your feedback and support of our efforts made all the difference in this victory. Our commitment to fundamental reform continues in 2016 as Congress works to lay the foundation for an overhaul. AMT’s Advocacy team will be counting on our members again for support, information and advice throughout the process.

Does this victory mean that Congress is finally beginning to recognize the role of manufacturing in economic growth, national security and global competitiveness? Or that we can expect more pro-manufacturing legislation in 2016? That may be giving more credit than deserved, but we certainly finished 2015 better than we expected when it started. AMT’s Advocacy team is looking forward to more progress in 2016.