Senator Dianne Feinstein (D-CA) voted in favor of legislation to extend expired business and individual tax provisions through the end of this year.
The bill, HR 5771, as originally introduced in the House, was passed in the Senate and signed into law by the President Dec. 19.
“With passage of this legislation comes much-needed certainty for taxpayers as they prepare to file their 2014 returns, and I believe American businesses and individuals are better off as a result,” said Feinstein.
The legislation includes a series of extensions to deductions that have the potential to prove helpful to many when filing federal taxes for the 2014 fiscal year, in early 2015.
“Whether it is supporting small businesses as they create jobs, farmers as they invest in essential equipment or homeowners and working families struggling to make ends meet, this legislation is positive for many areas of our economy.”
Some individual deductions that have been extended per the legislation include: expenses of elementary and secondary school teachers; the equalization of the tax exclusion for employer-provided commuter benefits; mortgage insurance premium deductions; state and local general sales taxes in lieu of state and local income tax deductions; deductions for contributions of real property interests for conservation purposes; tax exemptions of distributions from individual retirement accounts for charitable purposes, and the deductions for qualified tuition and education-related expenses.
There are also a series of deduction extensions relating to businesses, energy, pension plans, as well as a series of technical corrections to the federal tax code.
“In particular, I am pleased to see the extension of the research tax credit, from which many innovative California firms benefit, as well as provisions that support investments already made in wind, biodiesel and other renewable energy sources, a critical aspect of combating climate change.”
The legislation also exempts the collections of taxes on Achieving a Better Life Experience (ABLE) accounts set up for the benefit of individuals with disabilities to assist in maintaining their health, independence, and quality of life.
The legislation received overwhelming bipartisan support in both the House and Senate with local U.S. Representative Jeff Denham (R-Turlock) also voting in its support.