President Obama Signs 2014 Tax Extenders
On Dec. 19, President Obama signed H.R. 5771, The Tax Increase Prevention Act of 2014, into law. This law extends for one year only a number of tax relief provisions that expired on Dec. 31, 2013. The one-year extension act passed the Senate earlier by a vote of 76-16. And the House passed the legislation 378-46 on Dec. 3. By extending the provisions through Dec. 31, 2014, taxpayers and businesses will see tax relief on their 2014 tax returns.
The tax extenders package includes the 9 percent housing credit floor, which will be applicable for LIHTC allocations made prior to Jan. 1, 2015. It also includes an extension through the end of 2014 for the new markets tax credit (NMTC) and extends the military housing allowance exclusion for determining area median gross income. In addition, the legislation includes an extension of 50 percent bonus depreciation to property acquired and placed in service during 2014 and 2015 for certain properties with a longer production period.