After years of facing years of uncertainty with their tax bills, Utah’s small businesses and job creators no longer have to play a guessing game thanks to the bipartisan PATH Act, which provides permanent tax relief to grow our economy.
With measures targeted to small business expensing, investments in research and development, and accelerated depreciation, the PATH Act allows job creators to plan ahead and invest in our economy.
Utah is home to over 250,000 small businesses that employ approximately half of the private sector workforce in the state. Here’s a look at the specific provisions in Senator Hatch’s tax relief bill that will have the greatest impact on Utah businesses and hardworking families:
Small Business: Permanent Section 179 Expensing
This provision permanently extends the small business expensing limitation and phase-out amounts in effect from 2010 to 2014. It sets a new threshold at $500,000 and $2 million, respectively, from the current amounts of $25,000 and $200,000, respectively. This measure offers Main Street business owners tax relief for investing in the growth oftheir company and for hiring new workers.
Big Business and Small Business: Permanent Research and Development Tax Credit
This provision permanently extends the research & development (R&D) tax credit and, for the first time, allows for eligible small businesses to claim the credit against the alternative minimum tax (AMT) liability or against the employer’s payroll tax liability. Businesses large and small will have more incentives to invest in American innovation and create jobs here at home.
Retail and Restaurants on Main Street: Permanent 15-Year Depreciation
This provision permanently extends the 15-year recovery period for qualified leasehold improvements, qualified restaurant property, and qualified retail improvement property. For restaurants and retailers on Main Street, that means a lighter tax burden and more capital to invest in their businesses, workers, and communities.
