Eighth District Congressman Larry Bucshon, M.D. released the following statement regarding key legislation passed through the House last week that permanently extends critical tax cuts for Hoosier families and businesses. The legislation also includes a two year delay of the 2.3 excise tax levied on medical devices to help pay for the Affordable Care Act.
“Despite disingenuous claims by some who opposed this legislation to fight for tax increases, maintaining current tax policy by renewing these tax breaks, like we do every year, does not increase the deficit,” said Bucshon. “This important legislation has significant policy wins that make life easier for Hoosier families who are trying to plan for the future. It delays the medical device tax that is hampering life-saving innovation and permanently extends a provision that helps farmers and small businesses plan large expenditures on equipment so they can invest in our local communities. Most importantly, it keeps more money in the pockets of taxpayers and away from bureaucrats in Washington, D.C.”
BACKGROUND:
Key inclusions:
- Additional child tax credit made permanent.
- Extension of tax-free distributions from individual retirement plans for charitable purposes.
- Extension and modification of research credit.
- Extension and modification of increased expensing limitations and treatment of certain real property as section 179 property. The provision permanently extends the small business expensing limitation and phase-out amounts in effect from 2010 to 2014 ($500,000 and $2 million, respectively). These amounts currently are $25,000 and $200,000, respectively. This allows small businesses and the agriculture industry to plan large expenditures on equipment encourages economic activity in rural areas.
- Extension of above-the-line deduction for qualified tuition and related expenses.
- Extension of mine rescue team training credit. The provision extends through 2016 the mine rescue team training tax credit. Employers may take a credit equal to the lesser of 20 percent of the training program costs incurred, or $10,000.
- Extension of election to expense mine safety equipment.
- Two year delay of the medical device excise tax. The provision provides for a two year moratorium on the 2.3-percent excise tax imposed on the sale of medical devices. The tax will not apply to sales during calendar years 2016 and 2017.
- Prevention of retroactive claims of earned income credit after issuance of social security number.
- Prevention of retroactive claims of child tax credit.
- IRS employees prohibited from using personal email accounts for official business.
- Release of information regarding the status of certain investigations.
- Administrative appeal relating to adverse determinations of tax-exempt status of certain organizations.
- Termination of employment of Internal Revenue Service employees for taking official actions for political purposes.
- Educator Tax Deduction. For the first time, the tax extender package permanently extends the educator tax deduction, indexes the deduction cap to inflation, and includes professional development as a deductible expense. This permanent extension will provide relief to educators across the country that incur out-of-pocket expenses on classroom supplies and professional development. It helps ensure each educator has the resources, mentoring, and support professional needs so they can inspire students’ natural curiosity, imagination, and love of learning.
Congressman Larry Bucshon, M.D. is a physician and Republican member of the House Energy and Commerce Committee serving his third term representing Indiana's 8th Congressional district. The 8th District of Indiana includes all or parts of Clay, Crawford, Daviess, Dubois, Gibson, Greene, Knox, Martin, Owen, Parke, Perry, Pike, Posey, Spencer, Sullivan, Vanderburgh, Vermillion, Vigo, and Warrick counties.
