Last week, Congressman Brett Guthrie (KY-02) voted in favor of H.R. 2029, which included the Protecting Americans from Tax Hikes Act of 2015 (PATH) and an omnibus appropriations bill for Fiscal Year 2016.
“Year after year, Congress scrambles at the last minute to retroactively extend tax provisions that families and businesses depend on each year,” said Guthrie. “This is not an effective way to implement tax policy and underscores the need to fix our broken tax system. I am pleased that Congress has passed H.R. 2029, which is a step in the right direction to provide more certainty to Americans by extending and making permanent several of these expired provisions.”
The PATH Act restores and permanently extends the Research and Development (R&D) tax credit, which has been regularly extended since 1981. Guthrie has long supported this provision, which is also contained in the REBUILD Act, legislation introduced by Guthrie that seeks to increase our global competitiveness through a pro-manufacturing agenda.
“The R&D tax credit plays an important role in promoting greater investment in new technologies across many industries,” said Guthrie. “The permanency of the R&D tax credit is critical in preserving our long-term global competitiveness.”
In addition, the PATH Act restores and permanently extends the previously-expired $500,000 Section 179 expensing level for qualified property, which small businesses and farmers rely upon.
“Section 179 allows small business owners and farmers to immediately deduct property and equipment expenses, which in turn allows them to invest more in their businesses. Restoring and making permanent the Section 179 expensing level will ensure our job creators have the certainty they need to make critical investments from year to year,” said Guthrie.
The omnibus appropriations bill funds the federal government through the remainder of the fiscal year.
“This package is far from perfect, and I am disappointed that many provisions central to reigning in the administration’s overreach were not included,” said Guthrie. “But ultimately the bill ensures our military has the tools it needs to fight the growing threat of extremism around the world, and it maintains important conservative spending limitations.
“I am hopeful the new House leadership team will end the practice of governing by crisis, pushing critical decisions to the brink, and being forced to act quickly to avert disaster. Instead, we should methodically and carefully weigh important policy choices,” continued Guthrie. “Passing the year-end funding bill this week will allow us to move into 2016 with a fresh slate.”