Washington, DC – December 18, 2015 – (RealEstateRama) — U.S. Representative Ed Royce (R-Fullerton) voted for the Protecting Americans from Tax Hikes (PATH) Act, a $629 billion tax relief package:
“The more you tax something, the less of it you get. That’s why lowering taxes on economic productivity and Americans’ take-home pay is so critical. California’s businesses and families should be able to keep more of what they earn, it’s as simple as that,” said Rep. Royce. “Today’s legislation makes certain temporary tax breaks permanent, encourages more investments in research and development, and lays the groundwork for comprehensive tax reform.”
The PATH Act includes a number of provisions to lower the tax burden on individuals and small businesses. Included in the legislation are:
• Research and development (R&D) credits – Allows a company to deduct from their tax liability the amount of their R&D expenditures.
• Section 179 – Allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year.
• Employer wage credit for employees on active duty – Employers receive a tax credit of 20% on wages paid, up to $20,000 for a maximum credit of $4,000, for the time the employee is on active duty.
• Deduction for teacher classroom expenses – Allows a teacher to deduct from his or her income tax liability any classroom supplies he or she personally purchased.
• 100% exclusion on gains from the sale of small business stock – Money earned from the sale of small business stocks is exempted from federal income taxes.
• Food inventory deduction – Allows individuals to deduct the cost of food purchased and donated to food banks.
• IRA charitable rollover – Allows individuals to deduct charitable donations from their IRA Program Integrity Requirements.
• Section 174 – Imposes a two-year moratorium (through calendar year 2017) of the 2.3% medical device excise tax enacted by the Affordable Care Act.
Rep. Royce represents California’s 39th Congressional District, which encompasses parts of Los Angeles, Orange, and San Bernardino counties. He is Chairman of the House Foreign Affairs Committee and a senior member of the House Financial Services Committee.
Saat Alety (202-225-4111)