Press Release

U.S. Congressman Pat Tiberi today announced a number of his provisions were included in the year-end tax reform package negotiated by leaders of the House and Senate.

“I am pleased some of the measures I’ve long advocated for are included in this tax reform measure,” said Congressman Tiberi, a member of the Ways and Means Committee. “Extending some of these tax provisions for multiple years or making them permanent is the best way to create stability for American employers short of fundamental tax reform. Stability allows employers to better plan and expand their businesses, encouraging economic growth and job creation. This agreement moves us away from year-to-year extensions so we can focus on creating a tax code that is simpler, fairer, and more transparent and puts American workers and families first.”

“Today’s vote is the culmination of a lot of effort to end the cycle of uncertainty that small businesses have faced in recent years, dealing with the expiration of the so-called tax extenders” said NFIB President and CEO Dan Danner.  “I would personally like to thank Congressman Pat Tiberi, who has been a true champion for small business in this effort.  His sponsorship and advocacy of legislation to make small business expensing permanent was paramount.  Rep. Tiberi clearly understands that small business is the largest employer, the biggest taxpayer and the most important part of the economy and his efforts made a real difference.”

The following Tiberi sponsored provisions were included in the final bill:

Bringing Stability to Employers

Permanent Increased Section 179 Expensing Levels. This measure would permanently extend increased small business expensing levels effective during the 2010-2014 tax years outlined in Section 179 of the tax code. Section 179 will allow taxpayers to expense up to $500,000 in investments in property, equipment, and computer software with the deduction phased out after investments exceed $2 million. These amounts would be adjusted for inflation. Congressman Tiberi introduced this measure as H.R. 636, America’s Small Business Tax Relief Act, on February 2, 2015. It passed the U.S. House of Representatives on February 13, 2015.

Five Year Extension of Bonus Depreciation.  This measure would extend bonus depreciation for five years. It would allow employers to deduct 50 percent of qualified purchased property in 2015, 2016, and 2017. The amount phases out with a 40 percent deduction in 2018 and a 30 percent deduction in 2019. It would also lift restrictions to allow for more corporate Alternative Minimum Tax credits to be used toward capital investment, and it expands the definition of qualifying property to include retail and restaurant improvements for both leased stores and owner-occupied stores. Congressman Tiberi introduced a bill to extend bonus depreciation on May 21, 2015, and it passed the Ways and Means Committee on September 17, 2015.

Permanent Active Financing Exception. This provision would allow companies to better compete around the globe by making permanent the subpart F exception for income derived in active financing. It would help maintain a level playing field with foreign competitors by applying to financial services companies the same general rule that defers current U.S. tax on other active trade or business income. Without the active financing exception rules U.S. companies would be less competitive and jobs here at home would be jeopardized. Congressman Tiberi introduced this bill, H.R. 961, on February 12, 2015. It passed the Ways and Means Committee on September 17, 2015.

Encouraging Community Development and Real Estate Investment

Five Year Extension of New Markets Tax Credit. The five year extension of the New Markets Tax Credit will attract more capital to certain communities by providing private investors with a 39 percent credit against federal income taxes for investments made in some of the most distressed areas in the country. The credit has proven to be a cost-effective incentive that spurs private investment in low-income rural communities and urban neighborhoods where access to capital is often limited. Congressman Tiberi introduced an extension of the New Markets Tax Credit on February 10, 2015.

Permanent Floor in the Low Income Housing Tax Credit. This provision would permanently establish a fixed nine percent low-income housing tax credit rate for new rental construction property. Permanently establishing a rate removes uncertainty in the tax code and boosts the availability of affordable housing. The Low Income Housing Tax Credit is the principle means by which the government supports the construction and preservation of affordable rental housing. The measure for new rental construction was part of a larger bill Congressman Tiberi introduced on February 26, 2015.

Enacts US REIT Act Provisions. This measure would increase flexibility and remove certain redundant and unnecessary restrictions on Real Estate Investment Trust (REIT) activities in order to enable REITs to continue to achieve the goals set for them by Congress over fifty years ago. REITs were originally created by Congress to provide a transparent way to access the income and diversification benefits of investments in commercial real estate. Congressman Tiberi has long been a supporter of enacting these REIT provisions, having introduced the Update and Streamline REIT (US REIT) Act in the 112^th Congress.

Helping Ensure a Secure Retirement

Enacts Church Pension Plan Clarification Provisions. This measure clarifies the application of certain tax and retirement laws and regulations to the unique structures of church pension plans. The measure would correct unintended inequalities and ensure church pension plan participants have the same retirement security as their private-sector counterparts. Congressman Tiberi introduced the Church Plan Clarification Act in the U.S. House on November 19, 2015.

Encouraging Charitable Donations

Charitable Remainder Trust Clarification. This measure would give charities earlier access to funds in charitable remainder trusts by clarifying the tax consequences of early terminations of these trusts, encouraging the transfer of funds in such trusts to charities. Congressman Tiberi introduced this measure on December 8, 2015.